Hanjin to Shut European Operations
South Korean container shipper Hanjin Shipping said on Monday that it would close all 10 of its European businesses operations, reports the Wall Street Journal.
Hanjin has applied for court approval to close all 10 of its business operations in Europe, including its regional headquarters in Germany, according to a company spokeswoman.
The decision to shut down its European business is part of a breakup process for Hanjin, which began earlier this month. A judge had said the court, which is handling Hanjin’s insolvency proceedings, would consider selling the company entirely.
The company expects to start the process as early as this week after obtaining approval from the Seoul Central District Court.
Hanjin, which was the world's seventh-largest container shipper when it filed for receivership on August 31, has also put assets from its Asia-U.S. routes up for sale and was in talks with Mediterranean Shipping Co. over selling its Long Beach Terminal stake.
Hanjin filed for bankruptcy protection in Korea in late August and is currently under a court order to sell its own ships and return chartered ships to their owners.
Banks stopped providing financial support to Hanjin, which had been bleeding red ink, in late August, prompting the shipping line to file for court receivership.