U.S. court accepts Hanjin Shipping's request for bankruptcy protection
According to the Associated Press, Judge John Sherwood at the U.S. Bankruptcy Court in Newark, New Jersey temporarily granted Hanjin Shipping’s request issued last Friday.
South Korea’s largest shipping firm and the world’s seventh largest ocean shipper had filed for protection under chapter 15 in the U.S. court.
Chapter 15 is the section of the U.S. bankruptcy code that deals with international insolvency matters. It allows companies to be protected from possible lawsuits by creditors and their bids to seize company assets.
Due to the possibility that its ships could be subject to seizure by creditors, Hanjin Shipping had its ships on standby in waters near the ports of Los Angeles and Long Beach last week without being able to enter the ports. ■