Claims against bankrupt Hanjin Shipping top $10.5bn

8/14/2017

CREDITORS of Hanjin Shipping, which went bankrupt last year, stand little chance of recovering any of their money, with debts massively outweighing assets.

Court papers filed with the US Bankruptcy Court District of New Jersey show that claims filed by creditors total about $10.5bn.

However, the debtor’s estate has recovered only around $220m since Hanjin collapsed at the end of last August.

Jim Han Kim, lawyer appointed bankruptcy trustee of Hanjin Shipping, set out the figures in a declaration to the US court and said it was uncertain when initial distributions would be made to those creditors holding admitted claims.

Hanjin Shipping was a top 10 container line at the time that it went under after months of negotiations with key creditors, such as shipowners with vessels on charter to the carrier.

Its demise appeared to give fresh impetus to consolidation efforts, with the three Japanese shipping groups agreeing to merge their container businesses a few weeks later, and then Maersk announcing plans to buy Hamburg Süd while Cosco Shipping is in the process of taking over OOCL.