Hanjin Fall Is Lehman Moment for Shipping, Seaspan CEO Says
- Author: Anthony Vega Sep 14, 2016,
Sep 14, 2016, 1:53
Hanjin Shipping is still awaiting 60 billion won pledged earlier by parent company Hanjin Group.
"The fallout of Hanjin Shipping is like Lehman Brothers to the financial markets", Wang said.
The company said 93 of its vessels were stranded offshore as of September 11, including 79 container ships.
SEOUL-The South Korean government, long a bastion of support for the country's big conglomerates, is sticking to its hard-line stance on Hanjin Shipping Co.
Most of containers on the 182-metre long vessel had been offloaded but some destined for other ports were still being held, port authorities said.
The chairman of Hanjin Shipping, Cho Yang-ho, sent 40 billion won ($35.7 million) from his personal assets on Tuesday, said Hanjin Shipping spokeswoman Min Park.
On Monday, Choi Eun-young, former chief of the world's seventh-largest shipper now under court receivership, offered 10 billion won in personal assets.
Some 93 vessels, or two-thirds of Hanjin Shipping's fleet, are not operating properly, including vessels seized, barred entry to ports or terminals, denied services or moving slowly, according to Hanjin Shipping data on Monday. Shares of the company have slumped 65 percent this year, compared with a 1.9 percent gain in the benchmark Kospi index.
U.S. Bankruptcy Judge John K. Sherwood in Newark, N.J., on Friday granted Hanjin Shipping protection under Chapter 15 of the Bankruptcy Code, which shields foreign companies from lawsuits by U.S. creditors while they reorganize in another country. It is also seeking such decrees in other major nations including Germany, Spain and Italy, it said in an e-mailed statement.
That effort ended when Hanjin sought court receivership after lead creditor Korea Development Bank halted its support, Hanjin executive Kim Hyun-seok said last week.
In Long Beach, California, Hanjin Gdynia is in line to berth Wednesday after Hanjin Greece unloaded and cleared the way, and will be followed by Hanjin Jungil, the company said separately in a text message.
The President of South Korea, Park Geun-hye, has criticized Hanjin Shipping for having a "complacent mindset", the Yonhap News Agency reported.
Korea Asset Investment Securities general manager Kong Dong-rak said the government's decision was based on the cost of reviving Hanjin, given the high charter fees Hanjin is paying to shipowners and the industry's bleak short-term prospects.
-With assistance from Karolina Miziolek.