SKorean shipping giant declared bankrupt

SKorean shipping giant declared bankrupt

Once South Korea’s biggest shipper, Hanjin reaches end of line after 4 decades in business

By Alex Jensen

SEOUL (AA) - The demise of South Korea's global giant Hanjin Shipping was complete Friday, as a Seoul court declared the company bankrupt following a two-week period for appeal.

Hanjin went from being the world's seventh largest shipper -- and South Korea's biggest -- to bankruptcy since being placed under court receivership last September after creditors turned down its self-rescue plan.

The ripples of the company’s decline and $5.4 billion worth of debts were felt globally as most of its cargo fleet was left stranded in the traditionally busy run-up to Christmas -- leaving rivals able to pick up business and buy the best of Hanjin’s assets.

Seoul Central District Court will appoint an administrator to oversee the liquidation process, with creditors given until May to make claims according to local broadcaster KBS.

Hanjin’s downfall will be seen as a definitive cautionary tale from an international shipping crisis created by slowing growth.

It is left to Hyundai Merchant Marine to lead South Korea’s shipping charge, but it will rely on promised government support after an operating loss of 833.4 billion won ($726.7 million) last year.

In the South alone, Hanjin’s crisis could end up costing up to 25,000 jobs based on higher-end estimates.

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