A group of U.S. creditors appealed a court order allowing Hanjin Shipping Co. to sell one of its key remaining assets and to send the proceeds to South Korea, likely beyond the U.S. creditors’ reach, the Wall Street Journal reported today. The creditors, a group of shipping container and trucking chassis providers, on Tuesday filed papers asking the U.S. District Court in New Jersey to revisit a bankruptcy judge’s decision to approve the $78 million sale of Hanjin’s stake in a Long Beach, Calif., container terminal operator. Last month, the creditors lost a bid to keep the sale proceeds in the U.S. The proceeds will instead be administered by a court in South Korea, where the U.S. creditors say their rights and prospects of being repaid will be diminished. The appeal comes as a court in South Korea, where Hanjin’s assets and bankruptcy proceedings have been largely consolidated, has moved to end any efforts to help get the company back on its feet, opting instead for a total liquidation. A final ruling from the South Korean court regarding Hanjin’s fate is slated for Feb. 17.
