Hanjin Shipping last week filed for receivership in South Korea after attempts to raise fresh funding for the indebted company failed.
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“Following the Hanjin Scarlet’s arrival Tuesday evening, the vessel proceeded directly to an assigned anchorage, where it remains Wednesday following news that the Hanjin Shipping Co. has filed for receivership (a type of corporate bankruptcy where a receiver is directed by bankruptcy courts or creditors to run the company)”, a press release on August 31 from the Port of Prince Rupert stated.
Hanjin Shipping shares jumped as much as 28 percent on Tuesday morning before trimming their gains to be up 20 percent at midday. Its debt stood at 5.6 trillion won at the end of 2015, and a bankruptcy would be the container shipping industry’s largest. According to the labor union of Hanjin Shipping on Monday, about 50 container vessels and bulk carriers are now on standby at outer ports for an indefinite period of time as they are denied of call at ports.
Media reports from Seoul said Hanjin Group would raise 60 billion won, using assets including a stake in a terminal at the Port of Long Beach as collateral.
Hanjin’s receivership filing has prompted ports around the world to block access or refuse service to dozens of the company’s ships on fears they won’t be paid, stranding cargo. “We are waiting for a call”, Park said.
This includes three ships seized by creditors through court orders, up from one, a Hanjin spokeswoman said. The company is at risk of creditor action in the US, and its current financial state renders it impossible to repay 3.14 trillion won of loans maturing within one year, the filing showed.
Earlier, the government said Hyundai Merchant Marine Co., the country’s No. 2 shipper, plans to deploy 13 ships on Hanjin Shipping-operated routes.
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“If Hanjin ships with cargo fail to dock at ports, exporters could also have to bear additional expenses on extra loading and offloading of goods as well as on finding other vessels for shipping their goods to the final destinations”.
