South Korea’s Hanjin Shipping Co., which roiled global trade and temporarily marooned more than half a million cargo containers when it filed for bankruptcy, says it has raised only a fraction of what it needs to repay creditors, whose claims total about $10.5 billion, the Wall Street Journal reported. In court papers filed on Friday with the U.S. Bankruptcy Court in Newark, N.J., the trustee overseeing the carrier’s bankruptcy proceeding in Seoul said Hanjin has raised about $220 million since filing for bankruptcy nearly a year ago. Hanjin, once one of the world’s largest container-shipping companies, filed for receivership in South Korea in August last year. The company has since been selling ships, stakes in seaport terminals and other assets, with proceeds destined to repay creditors, whose claims must pass muster with a Korean court. In Friday’s court papers, Hanjin said that it was unclear when distributions to creditors would begin. But it made clear those distributions would be carried out according to a plan worked out in South Korea and consistent with Korean bankruptcy law. A Korean judge ordered Hanjin’s liquidation earlier this year. Hanjin filed for chapter 15 bankruptcy protection in the U.S. just days after filing for receivership in South Korea. Read more. (Subscription required.)
Cover all aspects of the UNCITRAL Model Law on Cross-Border Insolvency as well as chapter 15 of the Bankruptcy Code with ABI’s Chapter 15 for Foreign Debtors.
