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Court dismisses Hanjin’s rehab plans as ‘realistically impossible’

The future of Hanjin Shipping has been cast further adrift with South Korea’s main news agency Yonhap reporting yesterday that the court overseeing its receivership reckons the line’s rehabilitation plan is “realistically impossible” if key debts, such as backlogged charter fees exceed KRW1trn ($896m). Estimates put Hanjin’s charter costs at $2m a day at the moment. Its total debts are in excess of $5bn and mounting fast since court receivership was announced on August 31.

Shares in Hanjin plunged more than 20% to a record low after the report.

Hanjin has started returning chartered in ships to tonnage providers. The likes of Danaos, Seaspan and Navios are set to take a combined hit of around $1.2bn from the demise of Hanjin.

Hanjin’s early mooted rehabilitation plans saw it look to exit the main east-west trades and become an intra-Asia player. It has until December 19 to submit its plans.

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Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

Comments

  1. This is very odd when comparing the the Top Five Containers Players, Maersk, $10B, CMA/CGM, $8B, Cosco, $9B, Hapag Lloyd & Merged Partner, $10B, and Hanjin Shipping Debt of $4.1B, As of August 31, 2016, is the least, and Yet is being penalized the worse, far before its was forced into bankruptcy on that same date. The Hanjin Group, Who owns, Hanjin Shipping, Korea Air, Korea Development Bank, Hanjin Shipyard, Among other things, Have all turned their back on its own subsidiary how very sad..& Everyone here is in same boat, with very serious debt problems, and No one will ever be able to pay down it debt in full, When eighty, (80%) of its revenue is going to pay down interest and then principal. Right now their is at least twelfth, (12) shipping & container giants that are in very serious financial problems & If you think Hanjin Shipping is bad, this will look like child play in comparison!

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