Hanjin Shipping Asia-U.S. operations to be put up for sale tomorrow

Creditors have lined up to buy the shipper’s assets related to Asia-U.S. operations.

A spokesman for the South Korean court overseeing Hanjin Shipping Co’s receivership process has disclosed that the shipper’s Asia-U.S. operations is likely to be put up for sale by Friday.

The notice of the sale comes midst lining up of creditors after the shipper accumulated a debt of $5.51 billion (6.03 trillion won) and applied for court receivership in the wake of growing global overcapacity and low freight rates.

With the news of its anticipated sales, shares of Hanjin Shipping rose by 14%. Since late August, the stock had stumbled by 34%.

The company has received court approval to seek buyers for the sale of its assets in order to pay back its creditors, who have until October 25 to make their claims.

As per Alphaliner, a shipping data provider, Hanjin Shipping’s ship capacity has shrunk to thr 17th place in global rankings as of October 9.

According to the spokesman for Seoul Central District Court the deadline for binding bids is November 7.  When asked to comment on the potential price interested parties are willing to pay for Hanjin’s assets, he declined to comment on the issue.

The assets of Hanjin Shipping which are likely to be put up for sale includes its operating systems and manpower for its U.S.-Asia routes.

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