Shipping operator Korea Line Corp. won yesterday a bid to buy some of Hanjin Shipping’s assets in a bankruptcy sale supervised by a South Korean court.
The information was provided by a spokesman for the court, who detailed that Korea Line offered better terms in its bid, including taking on all employees
“Korea Line proposed better terms, including higher prices,” the judge said. “It also offered to take over more Hanjin employees.”
The court also revealed that Korea Line offered to buy 54% of the stake in a port terminal of Long Beach, in California.
The decision of choosing Korea Line over Hyundai Merchant Marine took the industry by surprise, which was expected to win.
SM Group owns Korea Line after being taken over by the second-tier business group in 2013. SM Group’s business portfolio ranges from construction to chemicals.
In the meantime, Hanjin Shipping Co. decreased from the global top ten carriers to the 21st place in the rankings with about 0.5% share.
From operating 97 box ships, now Hanjin owns 14 ships. All the chartered vessels but two have been returned to owners.
Hanjin Shipping filed for bankruptcy at the end of August. Since then, the South Korean company closed most of its offices in Europe and announced the sale of its Asia – U.S routes.
The Seoul Central District Court said the final deal will be signed on Nov. 21