South Korea's biggest shipping line files for receivership
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. ■