Hanjin, South Korea’s largest sea container shipping company filed for bankruptcy protection on Wednesday 31 August. On Thursday 1 September Hanjin formally entered into rehabilitation proceedings in Korea in an attempt to protect themselves from creditors. Recognition proceedings are likely to follow in other jurisdictions to enable Hanjin to operate vessels that are currently in limbo outside port limits.
Hanjin’s troubles are likely to have wide ranging repercussions. There are numerous creditors seeking advice on what steps can be taken to file claims and/or seek a recovery. Certain suppliers may also have claims against vessels relating to bunkers supplied on Hanjin’s instructions. In addition Hanjin are members of the CKYHE Alliance and it is unclear how the Alliance will deal with boxes on Hanjin vessels and how the service will be maintained in the absence of Hanjin operated routes.
BDM has considerable experience of the issues that arise from Korean rehabilitation proceedings. We represented numerous creditors in the Korea Line and STX rehabilitation proceedings and we have experience of dealing with recognition proceedings here under the Cross Border Insolvency Regulations.
