Hanjin Shipping: No Cash to Pay Creditors
Hanjin Shipping Co., the South Korean shipping company that caused havoc when it filed for bankruptcy, is struggling to raise enough money to repay $10.5 billion in creditor claims, WSJ reported.
Hanjin has raised only $220 million by selling ships, stakes in seaport terminals and other assets to repay its more than 180 creditors.
A trustee charged with Hanjin Shipping’s Korean bankruptcy case in in Seoul said Hanjin has raised about $220 million since filing for bankruptcy nearly a year ago.
At least 180 creditors were present for the court hearing on June 1, 2017. Hanjin Shipping in court was unable to say when distribution to creditors would begin.
A Korean judge ordered Hanjin’s liquidation on February 17, 2017.
Hanjin filed for chapter 15 bankruptcy protection in the US just days after filing for receivership in South Korea. The company initially sought to keep its business alive through a restructuring but eventually succumbed to a mountain of debt.