Alphaliner: Huge Debts Left after Hanjin Demise

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>

<< Oct 2018 >>
MTWTFSS
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 31 1 2 3 4

Ocean Energy Europe Conference & Exhibition 2018

The annual Ocean Energy Europe Conference & Exhibition is the meeting point for the whole ocean energy sector…

read more >

Europort 2018

From 15-17 May 2018, the 12th edition of Europort Romania willl take place in the IDU Hall in Constanta…

read more >

CWC World LNG & Gas Series: 10th Asia Pacific Summit

Bringing together the key LNG buyers and sellers from across the globe, the Summit provides…

read more >

Offshore Energy Exhibition & Conference (OEEC)

It is unique in bringing together the oil and gas, offshore wind and marine energy industry…

read more >