Hard road ahead for Hanjin

2016 has been a year of struggle for Hanjin Shipping. The South Korean liner operator applied for court protection on 31 August after losing the support of local banks that were dissatisfied with its liquidity plan. With more than USD5 billion of debt, the liner operator's receivership has had widespread ramifications - for its shippers, tonnage providers and container carrier rivals. Keep track of the latest developments with Fairplay's dedicated Hanjin topic page.

News & Analysis

Hanjin containers
08 Aug 2017
Sales of the bankrupt liner operator’s most prized assets raised a relatively paltry USD220 million.
06 Jan 2017
Creditors of Hanjin Shipping, which has been in receivership since 1 September 2016, have registered claims totalling KRW31 trillion (USD26 billion) with the Seoul Central District Court.
Hanjin San Francisco.
03 Jan 2017
The board of SM (Samra Midas) Group, the parent of Korea Line Corporation (KLC), has objected to the planned acquisition of Hanjin Shipping’s Asia-US and intra-Asia business networks.
Choi and her two daughters allegedly sold off their shares in the company just days before Hanjin Shipping announced that it had applied to come under KDB’s control.
30 Dec 2016
Choi and her two daughters allegedly sold off their shares in the company between 6 and 20 April, just days before Hanjin Shipping announced that it had applied to come under KDB’s control.
29 Dec 2016
The head of South Korea’s financial watchdog has said Hanjin Shipping’s descent into receivership was inevitable and sets “a precedent should similar situations arise”.

Commentary

Concerns about Hanjin Shipping were flagged up long before the South Korean line filed for bankruptcy. The reason why BCOs were wrong-footed and why it took so long for Hanjin Shipping to collapse lies in its 4,000 creditors, a number that shows just how interwoven the threads of the shipping industry have become.

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