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South Korea's biggest shipping line files for receivership

Staff Writer |
Hanjin Shipping, South Korea's biggest shipping line, on Wednesday filed for court receivership after its creditors refused to provide additional financial support.

The court filing came after the board of Hanjin decided unanimously to apply for receivership at a meeting earlier in the day, according to Yonhap news agency report.

The state-run Korea Development Bank (KDB), Hanjin's main creditor, said Tuesday that the shipper's restructuring plan was not enough to survive amid an industry-wide slump, caused by falling global trade.

Hanjin entered a voluntary debt-rescheduling plan in May to resolve its cash shortage, which creditors had expected to increase to as much as 1.3 trillion won ($1.2 billion).

The troubled shipper submitted a new restructuring plan to creditors, which unanimously viewed as insufficient.

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