The report says the USA bankruptcy filing was made by Suk Tai-soo, Hanjin’s inside director and foreign representative. The Wall Street Journal says Hanjin’s bankruptcy will be regarded as (quote) “the largest container-shipping failure in history” dwarfing all previous carrier bankruptcies.
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South Korea’s ruling Saenuri Party and the government will offer Hanjin Shipping 100 billion won (S$122.9 million) of loans, Yonhap reported on Tuesday (Sept 6), without citing anyone.
Hanjin’s share price plummeted about 30 percent early Monday, but a flurry of buying spurred by hopes for government help for the company helped erase some of the loss by mid-afternoon.
There has been little impact at the Port of Charleston because no Hanjin ships were scheduled to arrive in the days after the bankruptcy.
Hanjin Group is a huge, family-dominated conglomerate and also includes Korean Air. Since Hanjin called in the bankruptcy lawyer, the refusal of ports to handle its cargo has stranded 45 ships at sea, according to the company, and more than half a million containers.
Hanjin Shipping said that as of late Monday, 73 of its ships were seized or denied access to ports, comprised of 66 container ships and 7 bulk carriers.
South Korea’s two policy lenders – the Korea Development Bank and the Industrial Bank of Korea – will roll over maturing loans to some of the companies and provide special credit guarantee, Yim said.
Hanjin Shipping (OTC:HNJSF) has filed for bankruptcy protection in the US under Chapter 15 to protect its vessels from being seized by creditors, WSJ reports.
Hyundai Merchant Marine Co Ltd is in talks with South Korean firms such as home appliance makers Samsung and LG to carry their cargo, the chairman of South Korea’s Financial Services Commission told reporters on Monday. “CN will not accept additional Hanjin export loads – or bookings from other shipping lines destined for Hanjin vessels”, the release from August 31 continued. It filed for bankruptcy protection a day after its creditors, led by a state-run bank, refused to prop it up.
The confusion might also sink some trucking firms that contract with Hanjin to deliver cargo containers from ports to company loading bays.
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Hanjin’s woes show the container-shipping industry hasn’t recovered from the troubles faced since the 2008 global financial crisis hurt trade. That weaker trade and overcapacity have sent ocean shipping rates plunging in recent years.
