Wednesday D-Day for decision on Hanjin’s sale of stake in Long Beach terminal
A US federal bankruptcy judge hearing the case for Hanjin Shipping to sell its 54% stake in a terminal at the Port of Long Beach has said he will announce his ruling on Wednesday, according to Reuters.
South Korean firm Hanjin, which filed for bankruptcy in Seoul in August 2016 after its bankers withdrew their support, is seeking to sell its share in Total Terminals International (TTI) to Mediterranean Shipping Company (MSC) subsidiary Terminal Investment Ltd (TIL) for $78m.
But Hanjin’s US creditors, including container companies, insurance businesses and the Port of Seattle, are concerned that the deal may shut them out from recouping monies owed in favour of creditors overseas.
US Federal bankruptcy judge John Sherwood, who has been hearing Hanjin cases for months in District Bankruptcy Court in Newark, New Jersey, said he will confer with his South Korean counterpart before making his decision. The deal has already been approved by the Seoul Central District Court in South Korea.
Hanjin was the world’s seventh-largest container shipper at the time it failed and the ramifications of the bankruptcy had knock-on effects around the shipping world with much cargo left in limbo for weeks.
The Port of Long Beach is the second-busiest container port in the US and Hanjin used to account for 12% of its volume.
Donal
How much debt was involved in the Terminal operation?
What is Hanjin going to do with the proceeds that the creditors are concerned that they will be left out? They are not going to recoup their debts anywhere near 100%.