A Seoul court has officially declared former shipping giant Hanjin bankrupt
Embattled South Korean shipping giant Hanjin has finally been declared bankrupt.
A South Korean court made the decision today that Hanjin Shipping, formerly the world's seventh-largest container shipper, was officially bankrupt after ruling earlier in the month the firm's liquidation value would be worth more than its value as a going concern.
Hanjin had debts of more than £4bn.
The Seoul Central District Court said in a statement: "The court will, through the bankruptcy process, make efforts so the maximum of debt repayment will be conducted in a way that is fair and balanced to the creditors."
Hanjin's collapse played havoc with global cargo flows and was likened to the Lehman credit freeze in terms of its effect on the industry. It also resulted in billions of pounds worth of cargo being effectively stranded at sea when ports refused entry or impounded the fleet while docked.
Now, whatever assets Hanjin has left will be auctioned off and divvied up by creditors. The first meeting of creditors will be held on 1 June.
The company announced in October last year it would shut its European business, including Hanjin Shipping Europe and Hanjin Shipping Poland, after it previously filed for receivership when creditors refused a restructuring plan for its six trillion won (£4.4bn) debt.