Alphaliner: Huge Debts Left after Hanjin Demise

Image Courtesy: Hanjin Shipping

Following Hanjin Shipping’s bankruptcy, the rate of debt recovery for unsecured creditors is expected to be close to zero as most of the company’s unencumbered assets are being sold at very low prices, according to Alphaliner.

After the former South Korean shipping giant officially ended its 40-year history on February 17, 2017, when it was declared bankrupt by the Seoul Central District Court, a bankruptcy trustee has been appointed to lead the sale of Hanjin’s remaining assets to pay off debts, with creditors required to file their claims by May 1.

Hanjin’s last published financial report as at September 30, 2016, shows that the shipping firm’s total liabilities stood at KRW 6.69 trillion (USD 6.06 billion), including borrowings of KRW 4.56 trillion (USD 4.1 billion) and trade payables of KRW 2.02 trillion (USD 1.8 billion).

The company’s total assets were valued at KRW 4.34 trillion while shareholder’s equity showed a deficit of KRW 2.35 trillion, Alphaliner informed.

Although accounting firm Samil PwC submitted an estimated liquidation value for Hanjin Shipping of about KRW 1.79 trillion in December last year, the reported asset sales so far have garnered only USD 157 million, excluding the sale of vessels that have been seized by creditors.

Hanjin Shipping ended its business some half a year after the cash-strapped carrier was put under court receivership as it succumbed to the prolonged depression in the shipping market.

The company filed for court receivership in late August 2016 as its creditors, led by the state-run Korea Development Bank (KDB), said they would not provide additional financial support to Hanjin starting from September 4.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Apr 2018 >>
MTWTFSS
26 27 28 29 30 31 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 1 2 3 4 5 6

Singapore Maritime Technology Conference and Exhibition (SMTC) 2018

The 3rd Singapore Maritime Technology Conference and Exhibition (SMTC) 2018 is organized by the Maritime and Port Authority of Singapore…

read more >

Singapore Maritime Week 2018

Singapore Maritime Week (SMW), organised annually by Maritime and Port Authority of Singapore (MPA) and attracts…

read more >

8th Dredging & Land Reclamation World Summit 2018

The 8th Dredging and Land Reclamation Summit 2018 will gather the decision makers from Authorities and Operators responsible for ports…

read more >

Shipping 360

This course is ideal for those who have recently joined the maritime sector and those who need to have a better understanding…

read more >