Hanjin Sells Pacific Business to Korea Line

South Korea's Hanjin Shipping said on Tuesday it decided to sell part of its container ship business to Korea Line Corp for 37 billion Korean won ($31.38 million).

Korea Line will buy Hanjin's Pacific routes shipping business, relevant client management information, units in seven countries including the United States, China and Vietnam, as well as assets and manpower related to logistics systems, Hanjin said in a regulatory filing.

Hanjin said the sale, which will be completed on January 5, 2017, is to secure funds to pay off creditors. Hanjin applied for court receivership in late August after banks denied further financial support for the troubled shipping company.

Korea Line offered a higher price for the deal than Hyundai Merchant Marine. 

Hanjin Shipping’s container ship fleet has been reduced dramatically with most of its chartered vessels now returned to owners. Hanjin once operated 97 container ships, including 61 chartered vessels.

The deadline for Hanjin to submit a rehabilitation plan to the Korean bankruptcy court has been extended until February 2017.