Following the filing of court receivership by the nation’s leading container shipping line, many Hanjin-flagged container ships have been stranded at sea and ports due to asset seizure requests by creditors.
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A company spokeswoman, Park Eun-hye, confirmed Hanjin was moving to protect its assets but refused to specify in how many countries, beyond the US and South Korea.
With its assets frozen, Hanjin’s ships are being refused permission to offload or take on containers at ports worldwide, out of concern tugboat pilots or stevedores may not be paid.
The funding, however, is seen as falling far short of what the world’s seventh-largest container carrier needs after filing for court receivership last week when its creditors, led by Korea Development Bank (KDB), chose to halt support. Korea’s Financial Supervisory Commission said 79 of Hanjin’s vessels, including 61 container ships, have had their operations disrupted.
The bankruptcy of the Hanjin Shipping line is already causing turmoil at ports in the USA and beyond; cargo continues to be delayed at the point of origin and cargo-laden Hanjin ships are unable to get into ports.
South Korea’s financial regulator said Monday, Sept. 5, 2016, that financially troubled Hanjin Shipping Co. will seek stay orders in dozens of countries this week to help minimize disruptions caused by its slide into bankruptcy proceedings.
On Friday, the firm had filed for bankruptcy protection in the U.S., making a so-called “Chapter 15” filing with a U.S. court, a spokeswoman said on Monday, which would help protect its ships from being seized.
Hanjin last week filed for receivership after attempts to raise fresh funding for the indebted firm failed.
Hanjin shares rose more than 20% on the news of a lifeline.
Economic-related state agencies, including the Finance Ministry and Oceans and Fisheries Ministry, held emergency meetings to deal with the repercussions, pledging support to Hanjin’s small and medium-size logistics partners.
Hanjin Shipping declined to comment on applications for stay orders and Mr Yim’s comments.
The issue recovered to be just 1.6 percent lower at one point but soon fell back and ended at 1,070 won (97 cents), down 13.7 percent. 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, declining to elaborate.
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