Court declares Hanjin Shipping bankrupt

FEBRUARY 17, 2017 — South Korea’s Yonhap news agency reports that Hanjin Shipping Co. was today officially declared bankrupt by the Seoul Central District Court, after a two-week period for appeal expired.

The court said a bankruptcy trustee will be appointed to lead the sale of the shipping line’s assets to pay off debts to creditors.

All creditors are required to report their right to claim debts by May 1, reports Yonhap, which notes that earlier, an accounting firm had estimated the liquidation value of the shipping line at 1.79 trillion won (US$1.56 billion) saying that the liquidation of the troubled shipper is “more economical,” rather than continuing its rehabilitation scheme.

According to VesselsValue.com, the Hanjin fleet consists of 12 bulkers, estimated to be worth $225 million, a small dry cargo vessel worth $6 million, and 29 containerships, worth an estimated $755 million, for a total fleet value of around $986 million.