“The 100 billion won funding, if it comes to pass, is not almost enough to save Hanjin Shipping at all – it will most likely be used to pay fees to unload stranded cargo going forward”, said an official at a creditor bank, who was not authorized to speak with media and declined to be identified. Half of the estimated crew members are Hanjin Shipping employees while the remaining are foreign sailors that have been temporarily hired.
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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.
The company last operated over 60 regular lines worldwide with a fleet of some 140 vessels.
Kim said the amount of government’s financial support will be “100 billion won plus alpha”, which will enable the container carrier to dock its vessels and offload cargo. Larger operator Hamburger Hafen & Logistik AG, which handles three out of four containers passing through Germany’s biggest port, is closely monitoring the situation, spokesman Torsten Engelhardt said by phone. Its debt stood at 5.6 trillion won at the end of 2015, and a bankruptcy would be the container shipping industry’s largest.
The world’s seventh largest ocean shipper, Hanjin Shipping is part of the Seoul-based Hanjin Group, a huge, family-dominated conglomerate, or chaebol, that also includes Korean Air.
“The government asked Hanjin Group to pay some overdue fees and payments to resolve outstanding cargo issues, saying that it can help”, said Ryu Jae-hyun, an analyst at Mirae Asset Daewoo Securities.
“We are waiting indefinitely”.
Although expectations that Hanjin Shipping will be able to survive are low, the stock surged 30 percent on Tuesday, the daily limit, as investors made speculative bets on a stock that hit an all-time low on Monday.
He said the ship has about 10 days worth of meals and 20 days worth of other foodstuffs.
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“The government is making all-out efforts to minimize damage and loss of consignors”, Finance Minister Yoo Il-ho told reporters late Monday. Many vessels have months of supplies.
