Hanjin Shipping files for US bankruptcy protection

The South Korean shipping company filed Chapter 15 bankruptcy protection in the US in a Newark, New Jersey court on Friday according to a report the Wall Street Journal.

If the filing is recognised it will stop creditors from bringing legal action and seizing assets in the US.

Hanjin filed for court receivership on 31 August in Seoul and which has since been accepted by the court giving the company until 25 November to present a rehabilitation plan.

However, Hanjin’s global operations have effectively come to a halt with its vessels stranded outside ports and on the high seas around the world.

Creditors have already started taking legal action and an application in California by World Fuel Services to arrest the vessel Hanjin Montevideo was granted by the courts. On 30 August the day before Hanjin filed for receivership the vessel Hanjin Rome was arrested in Singapore.

The CKYHE alliance has also suspended its membership while CMA CGM has terminated agreements on five joint services.

Hanjin’s shares resumed trading on Monday falling 30% to KRW870 giving the company a market value of KRW213bn ($192m) according to Bloomberg.