May 04, 2024

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[THE INVESTOR]  Market watchers are concerned on the fate of Hanjin Shipping in the wake of the shipper’s decision to enter court receivership.

Hanjin Shipping on Aug. 31 reached an agreement to file for court receivership following the creditors’ decision that halted financial support the previous day.

Once Hanjin Shipping enters court protection, the court is left with the choice of either reviving or liquidating the shipper. 

Related story: Hanjin Shipping to file for court receivership

According to many industry experts, the court will most likely dismantle South Korea’s No.1 container carrier and the world’s seventh largest, as the liability of holding Hanjin Shipping together outweighs the current value of the company.

Another option is for Hanjin Shipping to merge with another struggling shipper Hyundai Merchant Marine. The government on Aug. 31 announced that it will consider ways for HMM to purchase only good assets of Hanjin Shipping, in an effort to prevent further damages in the already struggling shipbuilding and shipping industry.

By Ahn Sung-mi (sahn@heraldcorp.com)