US creditors of Hanjin Shipping Co. Ltd. objected to the Korean courier’s efforts to secure a New Jersey bankruptcy court approval of an asset sale to Mediterranean Shipping Co (MSC), reports WSJ.
Geneva-based MSC, the world’s second largest container operator by capacity, has offered $78 million for container terminal in Long Beach, Calif.
A group of container companies and other creditors concerned that Chapter 15 debtor Hanjin rushed through a sale of equity interest in Total Terminals International LLC and Hanjin Shipping TEC Inc. earlier warned that Hanjin may not have fetched the best offers and may sidestep outstanding debts without closer scrutiny.
According to the report, in court papers filed Friday with the U.S. Bankruptcy Court in Newark, creditors who say their rights are being affected by the sale—including container lessors, insurance providers and the Port of Seattle—urged a judge to throw out, delay or modify the proposed sale.
Hanjin has asked Judge John Sherwood to approve the bid, which it said was the highest and best offer following a competitive bidding process.
Hanjin owns a 54% stake in Total Terminals International LLC, the port operator that runs the Long Beach terminal. Mediterranean Shipping already owns the other 46%.