Hanjin shares jump 25% as US assets go on sale
Hanjin shares jump 25% as US assets go on sale:- Shares in Hanjin Shipping have surged on the news that the process to sell its US assets will begin on Friday.
Hanjin’s shares jumped as much as 25% following the announcement, which was made by the court overseeing the company’s receivership process.
The company applied for receivership in August after creditors had pulled their support for the heavily indebted firm.
Hanjin Shipping is 6tn won ($5.4bn, £4.1bn) in debt and the asset sale will be used to pay back creditors.
According to the Reuters news agency, the spokesman for the Seoul Central District Court said the deadline for binding bids was expected to be 7 November.
Ships and operations
Aside from several container ships, the sale will also include the company’s subsidiaries handling the Asia-US cargo operations.
Hanjin’s bankruptcy is the largest to hit the shipping industry.
The company has since been granted legal protection preventing its ships from seizure in various ports including South Korea, the United States and Japan.
Before the bankruptcy, Hanjin was the world’s seventh-largest container line and had been unprofitable for four of the past five years.
The global economic downturn in recent years has affected profits across the cargo shipping industry.
Source:-http://www.bbc.com/news/business-37640510
