Final Bill for Hanjin Shipping Bankruptcy: $10 Billion
Liquidation Raised Two Cents on the Dollar for Creditors
The bankruptcy of South Korean shipping company Hanjin Shipping is costing creditors over $10 billion.
That’s because the bankruptcy trustee in Seoul has raised about $220 million, according to reporting in the Wall Street Journal, about two percent of the $10.5 billion that creditors claim.
Hanjin filed for bankruptcy nearly a year ago after it failed to renegotiate its debt with creditors. The shipping line had at least 180 creditors. Hanjin’s collapse was the biggest ever to hit the shipping industry.
Hanjin, once the seventh largest container carrier in the world, has been selling off ships and other assets to pay off creditors. Earlier this year, Hanjin Pacific Corporation (HPC) sold its 100-percent stake in terminals in Tokyo, Kaohsiung, Taiwan, and Algreciras, Spain, for $13.15 million Hyundai Merchant Marine, also a South Korean shipping company.
In March a US bankruptcy judge allowed Maher Terminals in the port of New York and New Jersey to sell Hanjin containers to pay off claims owed by Hanjin.
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