Hanjin Shipping declared bankrupt by South Korean court

Court had ruled earlier the firm’s liquidation value would be worth more than its value as a going concern

Hanjin Shipping was once  the world’s seventh largest container shipper
Hanjin Shipping was once the world’s seventh largest container shipper

A South Korean court declared Hanjin Shipping bankrupt on Friday, after ruling earlier this month that the firm's liquidation value would be worth more than its value as a going concern.

Hanjin Shipping, which had been the world’s seventh largest container shipper, applied for court receivership in late August after its creditor banks halted further support.

The Seoul central district court said in a statement it had chosen a bankruptcy administrator, and claims by creditors were due by May.

The first meeting of creditors will be held on June 1st.

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“The court will, through the bankruptcy process, make efforts so the maximum of debt repayment will be conducted in a way that is fair and balanced to the creditors,” it said.

The court on February 2nd said it had decided to end the receivership process in favour of a bankruptcy. – Reuters