SUBSCRIBE TO OUR FREE NEWSLETTER
PUBLISHED |

Hanjin to shutdown European operations in wake of bankruptcy crisis

Hanjin to shutdown European operations in wake of bankruptcy crisis article image

Global shipping giant Hanjin will depart Europe amid continued fallout from its bankruptcy declaration this summer.

According to the Wall Street Journal Hanjin received approval from a court in its native South Korea to close eight of its 10 operations in Europe and eventually plans to shut the remaining two.

The European operations are expected to be sold off.

The company declared bankruptcy in South Korea and the US in early September, which stranded billions in cargo on its vessels around the world and caused chaos in global shipping markets.

Hanjin stakeholders pledged millions to help clear the stranded cargo, but reports suggested that the company would undergo significant downsizing.

Restructuring process

A court previously ordered Hanjin to sell as many of its ships as possible and return chartered ships to their respective owners.

A restructuring process is already underway – including the sale of operations between the US and Asia – and the company will update the court on the plan by December.

The court could then determine whether Hanjin will be allowed to continue or liquidated outright, the Journal reported. 

Shipping interruptions following the bankruptcy have now been alleviated, with just nine of Hanjin's 97 vessels still stranded with their cargo.

Leave A Comment

Spinning icon Saving your comment, please wait...
Spinning icon Saving your comment, please wait...