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Hanjin Shipping seeking court protection

Staff Writer |
Bankrupt South Korean shipping company Hanjin Shipping is seeking court protection in other countries this week to prevent seizure of vessels, reports said, citing Korea's Financial Services Commission.

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Hanjin Shipping plans to expand the scope of its court protection as soon as possible, with plans to pursue legal action in as many as 43 countries. Hanjin's shares declined around 14 percent in South Korean trading on Monday.

Hanjin filed for bankruptcy protection at the Seoul Central District Court on August 31 and requested the court to freeze its assets, after losing support from its banks. The company reportedly filed for bankruptcy in the United States last Friday.

Hanjin Shipping, the world's seventh-largest container shipping company, stopped accepting new cargo after it filed for bankruptcy protection, and its assets were frozen. Last week, much of Hanjin Shipping's container vessels were blocked to offload at ports, leaving many manufacturers worrying about the fate of their cargo.

As per reports, some Hanjin ships were seized in China for the creditors, while creditors in the U.S. have commenced legal action against the company.

The Korean Government is said to have decided to slowly move Hanjin towards liquidation, which would be biggest bankruptcy in the shipping industry.

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