Bankrupt South Korean shipping company Hanjin will sell its operations of the Port of Seattle’s Terminal 46 to Switzerland-based Mediterranean Shipping COmpany (MSC) subsidiary Terminal Investment Limited (TIL), reports AP.
The Seattle Times reports Hanjin will sell its majority stake in the terminal operating companies at the Seattle and Long Beach ports for $78 million.
Hanjin Shipping filed for bankruptcy protection at the end of August, worrying local retailers about the fate of their cargo. Hanjin had been delivering about three major shipments per week to the Port - nearly one-third of the traffic at Terminal 46 - and owned the company that operated the terminal.
Hanjin owns 54 percent of Total Terminals International (TTI), the company that operates the Port of Seattle's Terminal 46. TIL helps operate about 30 terminals around the world and already owned the 46 percent of TTL not owned by Hanjin.
The ocean carrier estimated its interest in the company at $78 million, and property in Paramus, New Jersey
, the company’s US offices, at $20.8 million.
As part of the Hanjin deal, the new owner is forgiving a $54.6 million outstanding balance due from Hanjin and taking on $202.9 million in debt, which is a big reason why the $78 million purchase price was so low.
Hanjin's assets included another $3.3 million for property in Alpharetta, Georgia, accounts receivable of $21.1 million and $1 million in a bank account.