World’s 7th largest container shipper files for bankruptcy

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http://www.reuters.com/article/us-hanjin-shipping-debt-idUSKCN11603N

South Korea’s Hanjin Shipping Co Ltd filed for court receivership on Wednesday after losing the support of its banks, setting the stage for its assets to be frozen as ports from China to Spain denied access to its vessels.

Banks led by state-run Korea Development Bank (KDB) withdrew backing for the world’s seventh-largest container carrier on Tuesday, saying a funding plan by its parent group was inadequate to tackle debt that stood at 5.6 trillion won ($5 billion) at the end of 2015.

Hanjin Shipping, South Korea’s biggest shipping firm, announced the filing for receivership and a request to the court to freeze its assets, which the Seoul Central District Court planned to grant, a judge told Reuters, declining to be named.

The court will now decide whether Hanjin Shipping should remain as a going concern or be dissolved, a process that usually takes one or two months but is expected to be accelerated in Hanjin’s case, the judge said.

A bankruptcy for Hanjin Shipping would be the largest ever for a container shipper in terms of capacity, according to consultancy Alphaliner, exceeding the 1986 collapse of United States Lines.

Global shipping firms have been swamped by overcapacity and sluggish demand, with Hanjin booking a net loss of 473 billion won in the first half of the year.

South Korea’s ailing shipbuilders and shipping firms, which for decades were engines of its export-driven economy, are in the midst of a wrenching restructuring. The KDB’s decision to stop backing Hanjin Shipping shows the government is taking a tougher stance with troubled corporate groups.

“The government will swiftly push forth corporate restructuring following the rule that companies must figure out how to survive and find competitiveness on their own while taking responsibility,” Finance Minister Yoo Il-ho said.

———-

“South Korea’s ailing shipbuilders and shipping firms, which for decades were engines of its export-driven economy, are in the midst of a wrenching restructuring. The KDB’s decision to stop backing Hanjin Shipping shows the government is taking a tougher stance with troubled corporate groups.”

ouch..

“Banks led by state-run Korea Development Bank (KDB) withdrew backing for the world’s seventh-largest container carrier on Tuesday, saying a funding plan by its parent group was inadequate to tackle debt that stood at 5.6 trillion won ($5 billion) at the end of 2015.”

who is next?

keep an eye on the bee dee eye..

401

~ by seeker401 on September 6, 2016.

6 Responses to “World’s 7th largest container shipper files for bankruptcy”

  1. Reblogged this on UZA – people's courts, forums, & tribunals and commented:
    And, no-one will buy their goods; and, merchants will stand afar saying Babylon has fallen; in peace

  2. We’ve crippled two of the most dynamic and wealthy markets the world has ever seen, North America & Europe, using globalism & the outsourcing it brings. We’ve subjected our workers in both markets to competition with billions of job-starved workers all around the world, and all to decrease overhead in a get-rich-quick scheme of world-wide proportions.
    But no decent jobs = no decent wages = no disposable income = market stagnation & shrinking markets = no need for shipping goods to people that no longer can afford to buy them.
    And there will be no “emerging markets” among those you shipped jobs to, as the very reason they have those jobs in the first place is that they work for slave wages, and THEY have no disposable income either…and raising their wages negates the very reason you outsourced in the first place.\
    This is no surprise, people have been warning of this since the GATT treaties of the mid-90’s.
    James Goldsmith on GATT (good)

  3. Reblogged this on World Peace Forum.

  4. Thousands of ships are being destroyed – and it’s terrifying news for the global economy
    https://peoplestrustmalaysia.wordpress.com/2016/08/23/thousands-of-ships-are-being-destroyed-and-its-terrifying-news-for-the-global-economy/

  5. […] South Korea’s Hanjin Shipping Co Ltd filed for court receivership on Wednesday after losing the support of its banks, setting the stage for its assets to be frozen as ports from China to Spain denied access to its vessels…continue reading […]

  6. Hanjin Shipping’s Troubles Leave $14 Billion in Cargo Stranded at Sea

    http://www.wsj.com/articles/billions-in-cargo-remains-stranded-at-sea-1473285117

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