In order to pay debts and service fees in arrears, Hanjin Shipping has been seeking to sell its profitable assets. (image: Yonhap)
SEOUL, Dec. 13 (Korea Bizwire) – An accounting firm assessing the viability of cash-strapped Hanjin Shipping Co. on Tuesday reported to a local court that the liquidation of the troubled shipper is “more economical,” rather than continuing its rehabilitation scheme.
Hanjin Shipping, once the country’s leading shipping company, was put under court receivership in September, as its creditors, led by the state-run Korea Development Bank, rejected its self-rescue plan, sending ripples to the global shipping sector.
In order to pay debts and service fees in arrears, Hanjin Shipping has been seeking to sell its profitable assets.
In the report submitted to the Seoul Central District Court, Samil PricewaterhouseCoopers estimated the liquidation value of the shipping line at 1.79 trillion won (US$1.53 billion) but did not assess the going-concern value as the company has been seeking to sell assets.
The court, however, is expected to push ahead with asset sales for the time being.
Hyundai Merchant Marine Co., a major shipping firm, and MSC submitted their bid for a 54 percent stake in Hanjin Shipping’s port terminal in Long Beach, California, an acquisition estimated at some 400 billion won. MSC is the second-largest shareholder in the terminal operation with a 46 percent stake.
Last month, SM Group, a mid-sized local group that owns South Korea’s No. 2 bulk carrier Korea Line Corp., agreed to acquire the troubled shipper’s U.S.-Asia route and other assets for 37 billion won, which will be completed by January.
Hanjin Shipping and local shippers have been under financial strain due to falling freight rates stemming from an oversupply of ships and a protracted slump in the global economy.
Out of growing concerns over the shipping firm’s liquidation, stocks of Hanjin Shipping closed at 408 won on the Seoul bourse, down 20.78 percent from the previous session’s close.
(Yonhap)
