A South Korean court is set to announce the liquidation for the cash-strapped Hanjin Shipping on February 17 after it decided to end the bankruptcy protection of Korea’s one-time top shipping line.
The Seoul Central District Court on Thursday decided to end the receivership after selling off Hanjin’s key assets, and added will provide a two-week time for appeals.
Hanjin Shipping, which had been the world’s seventh-largest container line, is saddled debts of more than $5bn and filed for court receivership in August last year.
The court’s latest decision reportedly came after Samil PricewaterhouseCoopers, the firm appointed to assess Hanjin’s financial status, submitted its report, The Korea Times reported.
According to PwC, the liquidation value of Hanjin stands at 1.8 trillion won ($1.57 billion). But the firm’s going concern value could not be assessed due to high uncertainty, the report added.
The Korean firm was put under court receivership in September after the creditors rejected its self-rescue plan, and the firm was in an effort to sell its profitable assets in order to pay debts and service fees.
Recently, Swiss-based Mediterranean Shipping Company (MSC) bought a stake in US ports operator Total Terminals International (TTI) from Hanjin. In November, Hanjin sold its business network and client information of Asia-US route to Korea Line Corp.
Meanwhile, Choi Eun-young, the former chairwoman of Hanjin Shipping, had been indicted on charges of insider trading earlier this year.
The prosecutors alleged the former chairwoman disposed off her stock in Hanjin Shipping before the firm filed for a debt restructuring programme. Choi and her two daughters sold 967,927 shares valued at 3 billion won ($2.7 million) between April 8 and April 20 last year, the regulatory filings had revealed.
References: reuters, koreantimes