South Korean carrier Hanjin Shipping has been officially declared bankrupt in a ruling by the Seoul Central District Court.
The ruling concludes lengthy negotiations that have been progressing since the firm first raised the prospect of bankruptcy in August 2016 and follows failure to extend US$3 billion worth of loans.
The collapse of Hanjin was one of the highest profile failures of 2016, and although the company had been under receivership since last year there remained some hope of a way to save some of the business.
“We will make efforts to pay back debt to creditors, as much as possible, through the liquidation process,” the court said in a statement to local media, adding that creditors would need to make claims by May 1.
Although predominantly focused on container traffic, the firm’s bankruptcy last year had a knock-on effect for many large breakbulk operators as weak rates impacted investor confidence.
At its peak Hanjin was South Korea’s largest shipping line, handling 17.5 percent of cargo between the country and the Americas.
Photo: Hanjin was officially declared bankrupt. Credit: Wikimedia