Formerly Korea's biggest shipping company,... Hanjin Shipping will soon be legally bankrupt.
Hanjin was put under court receivership last September, but the Seoul court has decided
to end the company's recovery program and let it collapse.
Oh Jung-hee has the details.
Once Korea's largest, and the world's seventh largest shipping company,... Hanjin will soon
mark the end of its 40-year history.
The Seoul Central District Court announced on Thursday that it is terminating Hanjin's
recovery program and will declare the firm bankrupt on February 17th.
The ocean carrier has completed selling its major assets.
It's sold off its 54-percent stake in U.S. port operator Total Terminals International,
or TTI,... and it's sold its equipment-leasing subsidiary HTEC,... for a combined amount
of roughly 78 million U.S. dollars.
Twenty percent of TTI is now owned by Hyundai Merchant Marine -- and the rest by Swiss shipping
company MSC.
The news comes five months after Hanjin was put under court receivership last September,...
after its creditors rejected the firm's self-rescue plan and decided to end their financial support.
Hanjin's collapse was a shock to the global logistics industry, causing a massive impact
on retail and trade,... and leaving billions of dollars in cargo stranded at sea for weeks.
In December, accounting firm Samil PwC, appointed by the court to look into Hanjin's financial
condition,... recommended that it would make more sense to liquidate the shipping company
than to continue with the recovery program.
Oh Jung-hee, Arirang News.
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