Most Read Contributor in South Korea, January 2017
The once great shipping giant, Hanjin Shipping Co., Ltd. is now
facing liquidation. The appraised liquidation value is 19 trillion
According to the inspection report prepared by Samil
PriceWaterhouseCoopers (Samil PWC) and submitted to the Seoul
Central District Court (the Korean Bankruptcy Court handling the
rehabilitation proceedings of Hanjin Shipping) on the 13th of
December, the appraised going concern value is only 80 billion won.
Moreover, following the sale of Hanjin Shipping's Asia-U.S.
route assets and its 54% stake in the Long Beach Terminal
International LLC, which constituted substantial portion of the
company's business assets, Hanjin Shipping's source of
revenue has basically diminished.
Hanjin Shipping will also be facing numerous compensation claims
due to its failure to satisfy supply commitments of freight volumes
to its customers. Samil PWC, as inspector for Hanjin Shipping's
rehabilitation proceedings, opined in its inspection report that
there is hardly any going concern value for Hanjin Shipping and,
that any further operation would rather be futile.
The rehabilitation proceedings will now come to an end as the
value of Hanjin Shipping's business falls short of the assessed
proceeds of liquidation. There will be no further drafting of a
rehabilitation plan, for which there had been a deadline in early
February 2017. According to unofficial comment from an unidentified
source involved in the rehabilitation proceedings at Seoul Central
District Court, the Court will declare Hanjin Shipping bankrupt
upon disposition of all its remaining assets.
We will keep you updated with notable news on Hanjin
Originally published Insolvency Legal Update, December
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Q1. Have all provisions of the Insolvency and Bankruptcy Code, 2016 been notified? A1. Not all provisions of the Code have been notified. Following is a list of the provisions that are in force:
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