The sale of the operator of a Long Beach, Calif., container terminal has provoked stiff opposition from Hanjin Shipping Co.’s U.S. creditors, many of whom say the deal is designed to bypass them, the Wall Street Journal reported on Saturday. Hanjin has asked Bankruptcy Judge John Sherwood to sign off on a proposed $78 million sale of the business, overruling creditors that have fought the deal and aim to keep as many of the shipper’s assets in the U.S. as possible. Some U.S. creditors — including container lessors, insurance providers and the Port of Seattle — say that the terms of the sale and Hanjin’s plans to direct any proceeds to South Korea could leave them empty-handed and without recourse to fully enforce their rights. During a U.S. court hearing on the sale that began on Thursday, lawyers for Hanjin described the Long Beach terminal business as a “melting ice cube” that had to be sold quickly to preserve Hanjin’s ability to extract any value from the asset. The Seoul Central District Court, which is the primary authority overseeing Hanjin’s bankruptcy, has already approved the sale.
