Hanjin Sale Is Possible, Court Says
28 September 2016 - 7:43PM
Dow Jones News
By In-Soo Nam
SEOUL--The South Korean bankruptcy court handling the insolvency
proceedings of Hanjin Shipping Co. said Wednesday a sale of the
troubled company is possible.
"The sale of Hanjin is one of the options we're considering. If
we conclude that it's the best way to rehabilitate the company,
we'll do so, " Choi Ung-young, a judge and a spokesman for the
Seoul Central District Court, said.
Mr. Choi said the court will make a decision soon, as the value
of Hanjin's ships and its business network could deteriorate with
the passage of time.
Maersk Line, the world's largest container operator and a unit
of Danish conglomerate A.P. Møller-Mærsk, has indicated it plans to
buy smaller competitors in the future, fanning market speculation
that Hanjin could be an acquisition target.
Hanjin Shipping, the country's biggest operator and the world's
seventh largest in terms of capacity, filed for bankruptcy
protection last month and is under court order to sell its own
ships and returning chartered ships to their owners.
The company has a total of 97 container ships. Of that total, 60
were chartered and 37 owned by Hanjin.
Hanjin's Korean peer Hyundai Merchant Marine Co. will be the
first to look at Hanjin's 37 container vessels. Government
officials have said they would back Hyundai in buying Hanjin
assets, provided such a move would help it stay competitive.
Hyundai Merchant, which is itself in the midst of a creditor-led
restructuring program, said it is exploring all possibilities with
Hanjin but nothing has been decided.
Shares of Hanjin have risen 40% in the past week after Maersk
Chief Executive Søren Skou said acquisitions are "the preferred
option" of Maersk investment, instead of building new vessels.
Hanjin officials and Mr. Choi, the court judge, said Wednesday
they haven't been approached by Maersk over a possible takeover of
the company.
Analysts said Maersk would be more interested in buying Hanjin's
vessels rather than the entire company.
Seoul's maritime minister, Kim Young-suk, said Tuesday he
believes Hanjin's corporate value as a going concern is higher than
if it liquidated, although the company's fate is up to the
court.
Write to In-Soo Nam at In-Soo.Nam@wsj.com
(END) Dow Jones Newswires
September 28, 2016 05:28 ET (09:28 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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