Most Read Contributor in South Korea, January 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 5,2016 Remarks: 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 deadlineforsubmissionofinspectionreport: December12, 2016 Remarks: The going concern value and the
liquidation value to be stated on the inspection report will serve
as a decisive factor in evaluating whether rehabilitation
proceedings of Hanjin Shipping may continue.
Extended deadline for submission of draft of
rehabilitation plan: February3, 2017
Remarks: 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
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India is heading towards a new era of dealing with insolvencies and bankruptcies, whether corporate or individual, by promulgating a comprehensive Insolvency & Bankruptcy code at par with global standards...
As a demonstration of India's combined political will, the much awaited and debated Insolvency and Bankruptcy Code, 2016 was passed by the Upper House of the Parliament on 11 May 2016 (shortly after being passed by the Lower House on 5 May 2016).
It appears that the code should become fully operational in the coming months, thus
overhauling and improving India's business and commercial environment significantly.
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