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Joined: Mon Apr 11, 2011 6:55 pm
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Post Hanjin
South Korea’s Hanjin Shipping Files for U.S. Bankruptcy Protection
Hanjin filed for protection from creditors Wednesday in South Korea

South Korea’s Hanjin Shipping Co. , one of the world’s largest container shipping companies, has filed for bankruptcy protection in the U.S. to protect its vessels from being seized by creditors.

Hanjin filed Friday for protection under chapter 15, the section of the U.S. bankruptcy code that deals with international insolvency matters, in U.S. Bankruptcy Court in Newark. N.J., days after the company sought protection in South Korea on Wednesday.

The company’s filing for rehabilitation. akin to chapter 11 in the U.S., in Seoul has roiled ports in the U.S. and beyond, as creditors seized ships and terminal operators refused to handle cargo, stranding Hanjin’s container ships loaded with appliances, electronics and other consumer goods.

Hanjin is currently the largest shipping company in Korea, operating approximately 60 regular lines world-wide, with 140 container or bulk vessels, court papers said. It is ranked as the world’s ninth largest container shipping company, transporting over 100 million tons of cargo a year.

Its failure would be the largest container-shipping failure in history, dwarfing all previous carrier bankruptcies. Since Hanjin called in the bankruptcy lawyer, the refusal of ports to handle its cargo has stranded 45 ships at sea, according to the company, and more than half a million containers.

The U.S. bankruptcy filing was made by Tai-Soo Suk, Hanjin’s inside director and foreign representative under the South Korean bankruptcy. If recognized by the U.S. court, the chapter 15 filing will block creditors in the U.S. from seizing the company’s assets or launching other legal actions while its foreign bankruptcy proceedings are under way.

Under chapter 15, added to the bankruptcy code in 2005, companies can protect their U.S. assets from creditors while they seek to sell their holdings or to restructure in their home countries. It has become a common tool for shipping companies, whose vessels face seizure by unpaid creditors in ports around the world.

Hanjin’s bankruptcy case is being handled by the law firm Cole Schotz P.C. U.S. Judge John K. Sherwood has been assigned the case. An initial hearing is set for Tuesday afternoon in Newark.

—In-Soo Nam and Joanne Chiu contributed to this article.

http://www.wsj.com/articles/south-korea ... 1473002745

Sun Sep 04, 2016 10:54 pm
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Joined: Mon Apr 11, 2011 6:55 pm
Posts: 6494
Post Re: Hanjin
1 down.

Sun Sep 04, 2016 11:21 pm
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Joined: Thu Mar 31, 2011 4:00 pm
Posts: 10071
Post Re: Hanjin
How does this happen? Greed. There certainly isn't a cargo shortage.

This Soo Suk, sure does...

Mon Sep 05, 2016 12:09 am
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Joined: Mon Apr 11, 2011 6:55 pm
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Post Re: Hanjin

Mon Sep 05, 2016 12:29 am
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