South Korea’s shipping company Korea Line Corp has signed a KRW 37 billion (USD 31.4 million) agreement to buy the Asia-US route network from the bankrupt container carrier Hanjin Shipping, the company said in a stock exchange filing.
The deal includes Hanjin’s business network and client information related to the route, subsidiaries and logistics management systems in seven countries, including the U.S., China and Vietnam, while 574 employees of Hanjin Shipping will continue to work for Korea Line.
The asset sale is scheduled to be finalized on January 5, 2017, according to the filing.
Earlier in November, Korea Line was selected as the preferred bidder for Hanjin Shipping’s Asia-US route network and for the firm’s stake in a container terminal at California’s Long Beach.
Korea Line has outbid its compatriot shipping company Hyundai Merchant Marine (HMM), after both companies submitted their final proposals to buy Hanjin’s assets.
Hanjin Shipping opted for the sale as it is looking for ways to repay debt which amounted to KRW 6 billion at the end of June.
Due to the prolonged depression in the shipping market the financially troubled shipping line filed for court protection in late August 2016.
World Maritime News Staff