Hanjin Assets Won't Satisfy Creditors

business

By MarEx 2017-08-08 18:55:51

South Korea’s Hanjin Shipping has only raised about two percent of the $10.5 billion its creditors are seeking.

The Wall Street Journal reports the company has raised $220 million after its bankruptcy last year which left more than half a million cargo containers stranded around the world.

At least 180 creditors were present at a court hearing on June 1, 2017 where Hanjin was unable to say when they would start getting paid.

In March, Hanjin Shipping's last remaining ship, the Hanjin Rome, was sold for scrap by a Singaporean court. The move signalled the end of the company's fleet with all vessels auctioned off, seized by creditors or repossessed by shipowners. The Hanjin Rome sailed to a Bangladeshi ship recycling yard, the final sailing for what was once the world's seventh-largest container fleet. 

Earlier in the year, Hanjin sold its 100 percent stake in Tokyo (Japan), Kaohsiung (Taiwan) and Algreciras (Spain) terminals for $13.15 million to Korean shipping company Hyundai Merchant Marine.

Earlier this month, South Korea’s 14 container shipping companies announced an MOU for the establishment of the Korea Shipping Partnership, a move designed to ensure the nation's container shipping industry stays competitive in the wake of Hanjin collapse. The partnership will include Hyundai Merchant Marine (HMM) and will see the companies share cargo capacity, add new routes and jointly manage overseas terminals.