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Seoul Central District Court News

10 Dec 2017

South Korea Jails Former Hanjin Shipping Chairwoman

The former chairwoman Choi Eun-young (55) of the now-defunct Hanjin Shipping was jailed 18 months for insider trading, reports Yonhap. According to the report the Seoul Central District Court found Choi  guilty of selling off her family-stake in the shipping company days before it declared a court-led debt restructuring plan. She was also fined with USD 1.09 million. The court said, although her charges are grave enough to deserve a heavy punishment, it considered that the stake selling does not appear to have been meticulously planned out and that Choi already donated 10 billion won to bear the responsibility for her misdeed. Choi was indicted in December last year for unloading the stakes held by her and her two daughters, taking advantage of the undisclosed information.

08 Dec 2017

Former Chief of Daewoo Shipbuilding Gets 6 Years in Jail

Former Daewoo Shipbuilding & Marine Engineering  (DSME) boss Nam Sang-tae sentenced to six years in prison by Korean court for embezzlement and bribery, Yonhap reported. The report said that the Seoul Central District Court handed down the guilty verdict to Nam Sang-tae, 67, convicting him of accounting fraud, embezzlement, breach of duty and bribery. The court ordered him to forfeit 880 million won (US$806,000). Prosecutors have demanded an eight-year prison term. The court said in the ruling: "The defendant neglected his responsibility as the chief of Daewoo Shipbuilding and sought his personal gains using his authority and power. Daewoo Shipbuilding is 57 percent owned by the state-run lender Korea Development Bank (KDB).

17 Feb 2017

S.Korea Court Declares Hanjin Bankrupt

A South Korean court declared Hanjin Shipping Co Ltd bankrupt on Friday, after ruling earlier this month that the firm's liquidation value would be worth more than its value as a going concern. Hanjin Shipping, which had been the world's seventh-largest container shipper, applied for court receivership in late August after its creditor banks halted further support. The Seoul Central District Court said in a statement it has chosen a bankruptcy administrator, and claims by creditors are due by May 1, 2017. The first meeting of creditors will be held on June 1, 2017. "The court will, through the bankruptcy process, make efforts so the maximum of debt repayment will be conducted in a way that is fair and balanced to the creditors," it said. The court on Feb.

05 Feb 2017

South Korean Court to Liquidate Hanjin Shipping

The Seoul Central District Court Thursday decided to end the bankruptcy protection of Hanjin Shipping Co. Ltd (Hanjin Shipping), leaving the company to succumb to a declaration of bankruptcy later this month, Yonhap reported. Hanjin, once the world's seventh- or eighth-largest container shipper, filed for court receivership in late August 2016 as its creditors, led by the state-run Korea Development Bank (KDB), said they would not provide additional financial support to Hanjin starting from September 4. “Now that the sale of Hanjin’s major assets is almost over, the time has come to declare its final fate,” WSJ quoted Choi Ung-young, a judge on the Seoul court as saying. Choi said the shipping line has hardly any value as a going concern and that the court will likely rule on Feb.

02 Feb 2017

S.Korea Court to Declare Hanjin Bankrupt on Feb. 17

A South Korean court said on Thursday it decided to end Hanjin Shipping Co Ltd's court receivership process and expects to declare bankruptcy on February 17 after a two-week period for appeals.   The Seoul Central District Court said in a statement that it made the decision as the firm's liquidation value would be worth more than its value as a going concern.   Hanjin Shipping, which had been the world's seventh-largest container shipper, applied for court receivership in late August after its creditor banks halted further support.   Swiss shipping group MSC said on Wednesday its unit has bought a stake in Hanjin Shipping's U.S. port operator, the latest Hanjin asset to be sold.   Reporting by Joyce Lee

19 Jan 2017

Ex-Daewoo Shipyard Head Gets 10 Years in Prison

Ko Jae-ho, the former head of the ailing South Korean shipbuilder Daewoo Shipbuilding and Marine Engineering (DSME), has been sentenced to 10 years in prison by a lower court in Seoul over accounting fraud, Yonhap News Agency reports. The Seoul Central District Court found Ko Jae-Ho guilty of manipulating the company's books in 2013 and 2014, when he was the CEO, and using them to raise bank loans. Ko Jae-Ho's punishment epitomises the decline of Daewoo, which was once one of the country's biggest conglomerates, or chaebol. "It seems that Ko was aware that there was extensive accounting fraud to make up for operating losses and achieve the operating profit target," the court said in its ruling.

20 Dec 2016

Hanjin Sells US Terminal Stake to MSC

South Korean ocean carrier Hanjin Shipping Co. signed a deal to sell its stake in the U.S. port operator that runs Long Beach, Calif.’s, biggest container terminal to Mediterranean Shipping Co. (MSC), reports WSJ. Hanjin, which for bankruptcy protection in August, had signed a contract to sell its 54% stake in Total Terminals International LLC to Geneva-based MSC, the world’s second largest container operator by capacity. The exact value of the deal wasn’t known. The Seoul Central District Court handling Hanjin’s insolvency proceedings approved the deal on the condition it also is endorsed by a U.S. Bankruptcy Court and the U.S. port authority. Hanjin owned a 54% stake in Total Terminals International, while MSC had controlled the remaining 46%.

14 Nov 2016

Korea Line to Take Over Hanjin's Asia-US Route

South Korea’s Korea Line has been picked as the preferred bidder to buy the troubled shipper Hanjin Shipping’s Asia-US operations, beating Hyundai Merchant Marine, reports Reuters. The judge at the Seoul Central District Court, which is handling Hanjin’s insolvency proceedings, awarded Korea Line the first right to purchase the assets of Hanjin’s Asia-U.S. route, as well as its stake in a California terminal. The court said it chose Korea Line over Hyundai Merchant Marine Co., which had been expected to win. Hyundai Merchant was backed by senior government officials and its main creditors, which said they would promote the company as the country’s largest oceangoing carrier.

13 Nov 2016

Two Final Bids for Hanjin

Bankrupt Hanjin Shipping Co has received two final bids for its Asia-U.S. route and its 54% ownership in the Long Beach terminal, the Wall Street Journal reported. Hyundai Merchant, South Korea’s largest shipping line, and Korea Line, a smaller operator, have both submitted proposals to acquire Hanjin’s trans-Pacific assets. In their proposals, both companies also expressed their intention to purchase Hanjin’s 54% stake in Total Terminals International LLC, which runs Long Beach Terminal in California. The bidders declined to provide further details, such as bidding prices for Hanjin’s assets. A judge at the Seoul Central District Court, which is handling Hanjin's insolvency proceedings, said the court planned to choose a preferred buyer by Monday and sign a formal contract by Nov. 21.

12 Nov 2016

Court Okays STX Offshore Rehabilitation Plan

STX Offshore & Shipbuilding has got the green light to carry on operations. A Seoul court today approved its rehabilitation plan, saving the yard, once the world’s fourth largest, from liquidation, reports Yonhap. STX Shipbuilding, once South Korea's No. 4 shipbuilder, has been placed under court receivership since June, amid a protracted slump in the shipbuilding industry. The Seoul Central District Court approved its revival plan, ending the financially shaky shipyard’s five-month long court receivership. The court said it is currently carrying out mergers and acquisitions (M&A) procedures for a smooth restructuring of the shipyard and is reviewing proposals from four enterprises that have been submitted as of last week. It is planning to receive acquisition proposals until Dec. 27.

04 Nov 2016

Four Bids for STX Offshore, STX France Emerge

Four parties have expressed interest in buying one or both of South Korea's STX Offshore & Shipbuilding Co Ltd and a controlling stake in STX France SA, a spokesman for the Seoul court overseeing STX Offshore's receivership said on Friday. The Seoul Central District Court spokesman declined to comment on the names of the parties. The South Korean court in October decided to allow the two units of the collapsed STX shipbuilding group to be sold either separately or together. Initial bids were due on Friday for all of STX Offshore & Shipbuilding Co Ltd and a 66.7 percent stake in STX France SA that is held by STX Europe AS. The four parties that entered non-binding bids in the sale were France's DCNS Group…

02 Nov 2016

Danaos Receives Notice of Hanjin Entering into Court Receivership

Danaos Corporation, one of the world's largest independent owners of containerships, today received notice that Hanjin Shipping Co. Ltd. (Hanjin) has filed for receivership with the Seoul Central District Court and requested that the court freeze its assets. Danaos currently charters eight of its vessels to Hanjin on long term, fixed rate time charters. The time charters associated with these vessels represent approximately $560 million of Danaos' $2.8 billion contracted revenue backlog as of June 30, 2016. The vessels contracted to Hanjin include three 10,100 TEU vessels built in 2011 and five 3,400 TEU vessels built in 2010 and 2011. "We are disappointed that the Korean Development Bank has failed to support an important participant in the global containership business," stated Dr.

29 Oct 2016

HMM Among 5 Bidders to Take Over Hanjin’s Transpacific Routes

South Korea’s Hyundai Merchant Marine (HMM) is one of five bidders for the trans-Pacific and intra-Asia networks of  Hanjin Shipping Co, reports WSJ. HMM submitted letters of intent to bid on Friday, the last day for such submissions. The five bidders now have until Nov. 4 to review the assets, which include the vessels that operate on the trans-Pacific route. The final bids due Nov. According to various reports, the Korea Line Corporation, and the Korea Shipowners’ Association (KSA) are among five bidders for Hanjin Shipping’s transpacific operations. However, a judge at the Seoul Central District Court, which is handling Hanjin’s insolvency proceedings, confirmed the five bids, but declined to identify the bidders.

24 Oct 2016

Hanjin to Shut European Operations

South Korean container shipper Hanjin Shipping said on Monday that it would close all 10 of its European businesses operations, reports the Wall Street Journal. Hanjin has applied for court approval to close all 10 of its business operations in Europe, including its regional headquarters in Germany, according to a company spokeswoman. The decision to shut down its European business is part of a breakup process for Hanjin, which began earlier this month. A judge had said the court, which is handling Hanjin’s insolvency proceedings, would consider selling the company entirely. The company expects to start the process as early as this week after obtaining approval from the Seoul Central District Court.

31 Aug 2016

Hanjin files for Receivership, Ports Turn Away Vessels

Hanjin says asks court for its assets to be frozen; Hyundai Merchant looking to buy Hanjin's "good" assets. South Korea's Hanjin Shipping Co Ltd filed for court receivership on Wednesday after losing the support of its banks, setting the stage for its assets to be frozen as ports from China to Spain denied access to its vessels. Banks led by state-run Korea Development Bank (KDB) withdrew backing for the world's seventh-largest container carrier on Tuesday, saying a funding plan by its parent group was inadequate to tackle debt that stood at 5.6 trillion won ($5 billion) at the end of 2015. Hanjin Shipping, South Korea's biggest shipping firm…

01 Sep 2016

Virginia Port Refuses Inbound Hanjin Cargo

Effective immediately, The Port of Virginia will not be accepting any inbound Hanjin cargo (freight for export) at any of the port’s marine or intermodal terminals. The port, however, will accept empty Hanjin containers at the PPCY. Further, the port is developing plans for how to handle Hanjin cargo that is already on-terminal. Those plans will be communicated to all port customers, users and stakeholders as soon as they have been finalized. This decision, said John F. Reinhart, CEO and executive director of the Virginia Port Authority, comes as a result of the announcement by the ocean carrier that it had filed for court protection after losing support of its banks in South Korea.

03 Sep 2016

Virginia Port Update on Handling of Hanjin, CKYHE Cargo

In light of the recent bankruptcy filing by Hanjin Shipping, The Port of Virginia has updated its policies and processes regarding the movement and loading of Hanjin vessels and containers. The following policy is effective as of Sept. Line onto a Hanjin vessel. Line vessels. These restrictions were requested by Cosco Container Lines, "K" Line, Yang Ming Line and Evergreen Line, which with Hanjin, compose the CKYHE shipping alliance. After careful consideration, the port agreed today to comply with the request. Beginning Aug. 31, 2016, the port enacted its own restrictions regarding the movement of Hanjin freight. • Not accepting any Hanjin containers for export at any of the port’s marine or intermodal terminals.

13 Sep 2016

Hanjin Shipping Secures $45 mln to Rescue Stranded Cargo

Parent group transfers $36 mln to troubled shipper. It may cost over $150 mln to unload stranded cargo. The chairman of Hanjin Group transferred 40 billion won ($36 million) to Hanjin Shipping on Tuesday to help unload cargo stranded on the troubled shipper's vessels, a spokesman said, but regulators warned securing further funds could take "considerable time". The parent of Hanjin Shipping pledged last week to raise 100 billion won to help rescue cargo in the wake of the collapse of the world's seventh-biggest container shipper, including the 40 billion won from Chairman Cho Yang-ho. About $9 million pledged by Choi Eun-young, a former chairwoman of Hanjin Shipping, has also come in, the shipper said.

21 Sep 2016

Busan: Business May Not be As Usual, Post Hanjin

Though Busan Port, the largest customer of Hanjin Shipping and hit hardest by the Liner's collapse,  asserts that everything is under control, doubts are being raised on Hanjin rehab plan as ships clog at the South Korean port, reports Reuters. As 13 Hanjin ships crowded waters outside the country's biggest port, the South Korean court handling Hanjin's receivership cast doubt on the container carrier's ability to survive a restructuring. A rehabilitation plan for the world's seventh-largest container carrier is "realistically impossible" if top priority debt such as backlogged charter fees exceed 1 trillion won ($896 million), the Seoul Central District Court said, South Korea's Yonhap newswire reported on Wednesday.

22 Sep 2016

Hanjin Gets $45 Million Credit Line From KDB

Korea Development Bank has offered a conditional credit line of 50 billion won ($45 million) to help ease supply-chain disruptions caused by the collapse of Hanjin Shipping Co, says a report in Reuters. An estimated $14 billion of cargo was trapped on Hanjin ships when the world's seventh-largest container carrier collapsed late last month, creating havoc ahead of the crucial holiday shopping season. The credit line is to be used only when all available funds from the nation’s biggest container mover, top shareholder Korean Air Lines, Hanjin Group's chairman and a former Hanjin Shipping chairwoman meant to help unload cargo are used up, the state-owned bank said in a statement.

28 Sep 2016

S. Korean Court Mulls Sale of Hanjin

The South Korean bankruptcy court handling the insolvency proceedings of Hanjin Shipping Co. said Wednesday a sale of the troubled company is possible, say media reports. However, the court has yet to reach a decision. "The sale of Hanjin is one of the options we're considering. If we conclude that it's the best way to rehabilitate the company, we'll do so, " Choi Ung-young, a judge and a spokesman for the Seoul Central District Court, said. According to Bloomberg, the Seoul Central District Court has called for a meeting of officials who are evaluating the container line. The court thinks it’s important to start the process sooner rather than later, but the sale plan will depend on market conditions. Hanjin, which filed for court receivership on Aug.

13 Oct 2016

Hanjin Assets to Go on Sale

The South Korean court overseeing Hanjin Shipping’s receivership process plans to put the collapsed shipper’s Asia-U.S. operations up for sale as early as Friday, says a report in Fortune. The company said that it is selling major businesses, including its Asia-U.S. route network, and will receive letters of intent by October 28. In a regulatory filing the company said a Seoul court overseeing its receivership process approved a public auction of the major businesses, and it is to get binding bids from interested parties by November 7, after a due diligence process. The spokesman for the Seoul Central District Court said the deadline for binding bids is expected to be Nov. 7. He declined to comment on potential price or interested parties for the assets.

14 Oct 2016

Hanjin Wants to Sell to Maersk

The Seoul Central District Court  has approved a divestment of Hanjin Shipping's Asia-US network and the bankrupt carrier has encouraged Maersk Line to bid on the assets, according to The Korea Economic Daily. It was reported that the ailing Korean shipping company recently contacted Maersk Line, the world's largest container shipping company, to take part in the bidding for the deal. According to the Court on October 13, Hanjin Shipping is set to undertake a main bidding on November 7 after making a business transfer notification on October 14 and taking letters of intent by the 28th. "The value of Hanjin Shipping falling rapidly in continuation of the ongoing logistical crisis, we will try to sell the assets as quickly as possible," said a spokesman from the court according to the media.