South Korean Court Is Considering Sale of Hanjin Shipping

By: Kyunghee Park | Sep 28 2016 at 03:04 AM | Liner Shipping The South Korean court overseeing Hanjin Shipping Co.’s receivership is considering a sale process for the entire container line, a month after the debt-laden company’s filing roiled supply chains worldwide.The Seoul Central District Court has called for a meeting of officials who are evaluating the container line, Choi Ung-young, a judge and a spokesman for the court, said in an interview Wednesday. The court thinks it’s important to start the process sooner rather than later, but the sale plan will depend on market conditions, he said.The proposed sale of the entire company comes after an analyst said A.P. Moeller-Maersk A/S’s container line could be interested in buying Hanjin Shipping and smaller rival Hyundai Merchant Marine Co., which is under creditor-led restructuring. The Seoul court had established a committee to evaluate Hanjin Shipping and the outcome is due in November, while the container company needs to submit its proposal for revival by Dec. 23.The court would prefer to have companies in the shipping industry take over Hanjin Shipping, rather than investment funds, to obtain the expertise necessary to help the troubled container line survive, Choi said.Hanjin Shipping rose 10 percent to close at 1,250 in Seoul trading, giving it a market value of about 307 billion won ($280 million). The company was valued at about $1.2 billion a year earlier.Both Hanjin and Hyundai Merchant are in need of a strong partner and Maersk Line, the world’s biggest container line, is probably the only rival with the financial muscle to manage a takeover, said David Kerstens, a transport analyst at Jefferies International Ltd. in London.Hyundai Merchant, South Korea’s second-largest sea container-shipping company, was said to be looking at buying some assets of Hanjin, people with direct knowledge of the matter said last week.Korea Development Bank—Hyundai Merchant’s largest shareholder and the biggest lender to Hanjin—and the Seoul court have been pushing to find a solution to the troubles at Hanjin.Slowing trade and a worldwide surplus of capacity have depressed freight rates and piled up losses at some container lines including Hanjin and Hyundai Merchant. The smaller Korean  competitor, unlike Hanjin, managed to obtain financial help after meeting all requirements set by creditors. State-run Korea Development Bank became Hyundai Merchant’s biggest shareholder after swapping debt for equity.

 

Carriers
Maersk May Target Hanjin, Hyundai in New Acquisition Plan

By: Christian Wienberg and Kyunghee Park | Sep 26 2016 at 11:52 PM | Liner Shipping  A.P. Moeller-Maersk A/S’s container line, which this month ditched a strategy of building new vessels and will instead try to grow through acquisitions, is targeting South Korea’s two biggest shipping firms, according to Jefferies …

Carriers
Hanjin Gets $45 Million Credit Line From Korean State Lender

By: Kyunghee Park | Sep 22 2016 at 05:16 AM | Liner Shipping  Korea Development Bank, the main lender to Hanjin Shipping Co., offered a conditional credit line of 50 billion won ($45 million) to help ease supply-chain disruptions caused by the collapse of the nation’s biggest container mover. The …