Most Read Contributor in South Korea, February 2017
Seoul Central District Court, or the Korean bankruptcy court
handling rehabilitation proceedings of Hanjin Shipping Co., Ltd.
(Hanjin Shipping) recently took several noteworthy measures.
Pursuant to the Court's decision, the fate of Hanjin Shipping
will not be unraveled until February next year. The upcoming dates
and deadlines for extended time pursuant to the aforementioned
decision are as follows:
Extended deadline for the
claim inspection period: December 5, 2016Remarks: It
won't be until after the claim inspection period that whether
the claims reported last month will be accepted or rejected will be
Extended deadline for
submission of inspection report: December 12, 2016Remarks:
The going concern value and the liquidation value to be stated on
the inspection report will serve as adecisive factor in evaluating
whether rehabilitation proceedings of Hanjin Shippingmay
Extended deadline for
submission of draft of rehabilitation plan: February 3,
2017Remarks: Rehabilitation plan will be submitted if and
only if the going concern value turns out of be greater than the
liquidation value in the inspection report.
Some progress has been made in the rehabilitation proceedings as
Hanjin Shipping's Asia-U.S. route assets have been taken over
by Korea Line Corporation, a subsidiary of Samra Midas Group, on
November 21, 2016 following appointment as preferred bidder on
November 14, 2016. Korea Line Corporation had expressed intent to
purchase Hanjin Shipping's 54% stake in Long Beach Terminal
International LLC, but sale of the stake is subject to further
discussions with Hanjin Shipping and Mediterranean Shipping Company
S.A. with the remaining 46% stake in the target company. While the
disposed assets constitute substantial portion of Hanjin
Shipping's business assets, there still remain considerable
assets (including the aforementioned 54% stake in Long Beach
Terminal International LLC) to be disposed, and the media has made
speculations that the Court's main intent behind the slowing of
timeline of the rehabilitation proceedings is to secure additional
time to sell remaining assets.
We will come back with more info to follow up as the
rehabilitation proceedings progress if we deem it necessary to
Originally published in Insolvency Legal Update November
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