South Korean shipping line Korea Line Corp. won an auction for substantially all of the assets that comprise bankrupt Hanjin Shipping Co.'s U.S.-Asia line in South Korea's Seoul Central District Court.
Korea Line was declared the winner on Monday, Nov. 14 and sale documents will be signed on Nov. 21, according to Bloomberg. Hyundai Merchant Marine Co. was the other bidder for Hanjin's Asia-U.S. assets, which includes a majority stake in a terminal located in Long Beach, Calif. Hyundai Merchant Marine was widely viewed as the favorite in the auction.
Financial terms of Korea Line's winning bid were not immediately made public.
Hanjin's chances of escaping total liquidation in its insolvency proceedings may be vanishing. Once the the world's seventh-largest container shipper, Hanjin has been hit hard by a decline in demand for global shipping. It filed for Chapter 15 protection in the United States in Newark, N.J. on Sept. 2, listing 6.63 trillion won ($5.94 billion) in assets and W6.03 trillion in liabilities as of June 30, two days after it commenced similar proceedings in Korea.
The bankruptcy filing sent its supply chain into chaos, as large companies that had contracted with Hanjin for inland transportation of goods being shipped in from overseas were forced to turn to third-party logistics companies, as Hanjin lacked the funds to transport goods any further than port.
Hanjin has slowly been returning its chartered ships to their original owners as it completes its deliveries. The shipper only possesses 14 vessels, about a tenth of its original fleet, Bloomberg reports.