April 27, 2024
Industrials
Liquidation preferred over rehabilitation for Hanjin
[THE INVESTOR] An accounting firm assessing the viability of cash-strapped Hanjin Shipping reported to a local court on Dec. 13 that liquidation of the troubled shipper is “more economical,” rather than continuing its rehabilitation scheme.
In the report submitted to the Seoul Central District Court, Samil PricewaterhouseCoopers estimated the liquidation value of the shipping line at 1.79 trillion won (US$1.53 billion) but did not assess the going-concern value as the company has been seeking to sell assets.
The court, however, is expected to push ahead with asset sales for the time being.
Hanjin Shipping and local shippers have been under financial strain due to falling freight rates stemming from an oversupply of ships and a protracted slump in the global economy.
Out of growing concerns over the shipping firm’s liquidation, stocks of Hanjin Shipping closed at 408 won on the Seoul bourse, down 20.78 percent from the previous session’s close.
(theinvestor@heraldcorp.com)
In the report submitted to the Seoul Central District Court, Samil PricewaterhouseCoopers estimated the liquidation value of the shipping line at 1.79 trillion won (US$1.53 billion) but did not assess the going-concern value as the company has been seeking to sell assets.
The court, however, is expected to push ahead with asset sales for the time being.
Hanjin Shipping and local shippers have been under financial strain due to falling freight rates stemming from an oversupply of ships and a protracted slump in the global economy.
Out of growing concerns over the shipping firm’s liquidation, stocks of Hanjin Shipping closed at 408 won on the Seoul bourse, down 20.78 percent from the previous session’s close.
(theinvestor@heraldcorp.com)
