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HMM and Korea Line submit proposals to acquire Hanjin's trans-Pacific assets
THE sale of Hanjin Shipping has drawn two final bids, including one from Hyundai Merchant Marine Co. (HMM), for the assets of its Asia-U.S. route and its stake in a California terminal, as the beleaguered company is broken up as part of a restructuring plan.
Hyundai Merchant, South Korea's largest shipping line, and Korea Line Corp., a smaller operator of dry bulkers and liquefied-natural-gas carriers, said they have submitted proposals to acquire Hanjin's trans-Pacific assets, the Wall Street Journal.
In their proposals, both companies also expressed their intention to purchase Hanjin's 54 per cent stake in Total Terminals International LLC, which runs Long Beach Terminal in California. The bidders declined to provide further details, such as bidding prices for Hanjin's assets.
A judge at the Seoul Central District Court, which is handling Hanjin's insolvency proceedings, confirmed the two bids. He said the court plans to choose a preferred buyer soon and sign a formal contract by November 21.
A total of five shipping companies and equity funds had presented their initial bids last month to acquire Hanjin's trans-Pacific assets, including its container ships, business network and the workforce involved in running the Asia-U.S. route.
The sale process may herald the beginning of the end of Hanjin, which filed for receivership in late August, disrupting supply chains around the world.
Hyundai Merchant, which is owned by state-owned Korea Development Bank, is trying to expand its fleet to compete with bigger rivals such as Denmark's Maersk Line and Geneva-based Mediterranean Shipping Co. on the route, one of Asia's main links to Western markets.
The South Korean government has said it would back Hyundai in buying Hanjin's assets, provided the purchase would help the shipping company stay competitive.
Hyundai Merchant, South Korea's largest shipping line, and Korea Line Corp., a smaller operator of dry bulkers and liquefied-natural-gas carriers, said they have submitted proposals to acquire Hanjin's trans-Pacific assets, the Wall Street Journal.
In their proposals, both companies also expressed their intention to purchase Hanjin's 54 per cent stake in Total Terminals International LLC, which runs Long Beach Terminal in California. The bidders declined to provide further details, such as bidding prices for Hanjin's assets.
A judge at the Seoul Central District Court, which is handling Hanjin's insolvency proceedings, confirmed the two bids. He said the court plans to choose a preferred buyer soon and sign a formal contract by November 21.
A total of five shipping companies and equity funds had presented their initial bids last month to acquire Hanjin's trans-Pacific assets, including its container ships, business network and the workforce involved in running the Asia-U.S. route.
The sale process may herald the beginning of the end of Hanjin, which filed for receivership in late August, disrupting supply chains around the world.
Hyundai Merchant, which is owned by state-owned Korea Development Bank, is trying to expand its fleet to compete with bigger rivals such as Denmark's Maersk Line and Geneva-based Mediterranean Shipping Co. on the route, one of Asia's main links to Western markets.
The South Korean government has said it would back Hyundai in buying Hanjin's assets, provided the purchase would help the shipping company stay competitive.
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