Hanjin Shipping gives update on financing, provider ‘price gouging’

By Caroline Salls

Pittsburgh, Sept. 23 – Hanjin Shipping Co., Ltd. has secured roughly $45 million in financing for continued operations since it filed for rehabilitation in Korea on Aug. 31, according to a status report filed Thursday with the U.S. Bankruptcy Court for the District of New Jersey.

Of the $45 million raised, foreign representative Tai-Soo Suk said in the report that $37 million came from Hanjin’s chairman, and the remaining approximate $8 million was contributed by Hanjin’s former chairwoman.

In addition, parent company Korean Airlines and Hanjin are finalizing an agreement under which Korean Airlines would loan $54 million to Hanjin for continued business operations, including the berthing of ships and the loading and unloading of containers throughout the world.

On Sept. 9 the Korean court approved expenditures for the movement and unloading of vessels in the United States, including $10.21 million for unloading and port charges for four vessels, $4.39 million for payment of terminal charges and $4.1 million for bunker fees.

According to the report, Hanjin has been informed that some railways, marine terminals and container lessors have been charging Hanjin’s customers more than what Hanjin would have charged to transport the shippers’ cargo.

“Although Hanjin believes such price gouging is wholly inappropriate and has tried to intervene (including notifying the Federal Maritime Commission), there is nothing more Hanjin or the foreign administrator can do,” the company said in the report.

Hanjin said its deadline for submitting a rehabilitation plan was extended to Dec. 31 from Nov. 25.

Hanjin, a marine transportation services company based in Seoul, South Korea, filed bankruptcy on Sept. 2. The Chapter 15 case number is 16-27041.

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