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.