SAN FRANCISCO The judge overseeing the U.S.
bankruptcy case of Hanjin Shipping Co Ltd said on
Friday he will likely announce on Wednesday whether he will
approve the South Korean company’s sale of its stake in a U.S.
terminal operator after conferring with his South Korean
“I do intend to render a decision probably on Wednesday and
I’ll just read it into the record,” Judge John Sherwood said at
the end of an all-day hearing in which container companies
argued against the sale.
Hanjin is selling its 54 percent stake in Total Terminals
International LLC for $78 million to Luxembourg-headquartered
Terminal Investment Ltd in a deal that also includes forgiving
$54.6 million in debt. The deal has already been approved in
court in South Korea.
The container companies are creditors of Hanjin and are
concerned whether it is getting top dollar for the stake in
Total Terminals under the deal with Terminal Investment.
The container companies are also concerned about sale
proceeds going to South Korea, where they believe their claims
may not be treated fairly.
Lawyers for Hanjin and Total Terminals, which operates
container terminals at the ports of Seattle and Long Beach,
California, countered the sale must be concluded to raise
proceeds and because Total Terminals is on the brink of
Hanjin, the world’s seventh-largest container line, filed
for bankruptcy in August, triggering chaos for importers and
exporters using its vessels. Its U.S. Chapter 15 bankruptcy case
has been marked by confusion over assets in the United States
and proceedings in South Korea.
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