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Hanjin Shipping files for chapter 15 bankruptcy protection in the US
SEEKING to prevent its vessels from being seized by creditors, South Korea's Hanjin Shipping has filed for bankruptcy protection under chapter 15 at the US Bankruptcy Court in Newark.
The company's filing in Seoul has roiled ports in the US and beyond, as creditors seized ships and terminal operators refused to handle cargo.
According to Hanjin, the refusal of ports to handle its cargo has stranded 45 ships at sea and more than half a million containers, reported the Wall Street Journal.
The carrier is the biggest shipping line in Korea, operating 60 regular lines worldwide, with 140 container or bulk vessels, court papers said. It is ranked as the world's ninth largest container shipping company, transporting 100 million tons of cargo per annum.
In the event the bankruptcy filing is recognised by the US court, the chapter 15 filing will block creditors in the US from seizing the company's assets or launching other legal actions while its foreign bankruptcy proceedings are under way.
Under chapter 15, companies can protect their US assets from creditors while they seek to sell their holdings or to restructure in their home countries.
The company's filing in Seoul has roiled ports in the US and beyond, as creditors seized ships and terminal operators refused to handle cargo.
According to Hanjin, the refusal of ports to handle its cargo has stranded 45 ships at sea and more than half a million containers, reported the Wall Street Journal.
The carrier is the biggest shipping line in Korea, operating 60 regular lines worldwide, with 140 container or bulk vessels, court papers said. It is ranked as the world's ninth largest container shipping company, transporting 100 million tons of cargo per annum.
In the event the bankruptcy filing is recognised by the US court, the chapter 15 filing will block creditors in the US from seizing the company's assets or launching other legal actions while its foreign bankruptcy proceedings are under way.
Under chapter 15, companies can protect their US assets from creditors while they seek to sell their holdings or to restructure in their home countries.
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