This basically means that any method of rehabilitation for the shipping company is over and will transfer into liquidation of the company.
According to analysts liquidation of Hanjin would bring in an estimated USD1.56 billion rather than continuing the rehabilitation scheme which would be costly.
Since its’ collapse in August 2016, parts of the company has been sold off bit-by-bit, with vessels, assets and even staff being transferred. The most recent action was the eventual wrap-up of Hanjin’s stake in terminal operator TTI, who own terminals at the Port of Long Beach and the Port of Seattle.
The announcement for bankruptcy will be made by the Seoul Central District Court on 17 February.
Hanjin, which was formed in 1977, was South Korea’s number one shipper and one of the largest shipping lines in the world before its’ collapse with debts of more than USD5 billion.