South Korea court declares Hanjin Shipping bankrupt
SEOUL The axe finally fell on South Korea's Hanjin Shipping yesterday as a court declared it bankrupt after struggling for years under US$5.37 billion (S$7.61 billion) of debt.
In August last year, Hanjin filed for bankruptcy protection as creditors refused to bail it out, with dozens of its vessels stranded outside around the world as they were refused entry to ports.
An accounting firm hired by the Seoul court concluded earlier this month that the firm's liquidation value would be greater than its worth as a going concern.
The firm, which was once South Korea's biggest shipping firm, has since been forced to sell most its assets at home and abroad to pay off debts, with most of its 1,500 workers laid off.
Hanjin's demise represents the biggest bankruptcy in container shipping, and news of its impending doom last year caused chaos in the global industry. - AFP