The bankruptcy proceedings of Hanjin Logistics ended on the 23rd, following the court's decision to terminate the bankruptcy. This marks approximately eight years since the bankruptcy declaration was made in 2017.
The Seoul Bankruptcy Court's Recovery Division 15 (Director General Na Sang-hoon) noted that it issued a decision to terminate the bankruptcy of Hanjin Logistics on this day. The termination of bankruptcy occurs when the bankruptcy proceedings initiated by a bankruptcy declaration are concluded by a court decision without achieving their purpose.
The court stated that the total amount of recognized bankruptcy claims through the recovery and bankruptcy proceedings was approximately 3.5246 trillion won, and the total amount of estate claims was 615.2 billion won, but the cash collection amount (the amount the bankruptcy trustee turned assets into cash) was 477.1 billion won.
It also explained, "The cash collection amount was insufficient to repay the estate claims that had to be paid prior to the bankruptcy claims and the procedural expenses arising from the bankruptcy process, resulting in a lack of resources to distribute to creditors."
The bankruptcy trustee sold cash assets, accounts receivable, facilities, real estate, goodwill, and membership assets, liquidated over 40 overseas subsidiaries, and collected more than 20 outstanding overseas receivables to secure the cash collection amount. In this process, over 150 lawsuits were also handled.
Hanjin Logistics applied for the commencement of recovery procedures in August 2016 as its liquidity worsened due to intensified freight competition in the shipping industry, a contraction in shipping demand, and an oversupply of vessels.
It received a decision to commence recovery procedures in September of the same year, but the termination of recovery procedures was decided in February of the following year, and a bankruptcy declaration was made.
In December of last year, the bankruptcy trustee requested the termination of proceedings due to asset liquidation completion without progressing towards the dividends procedure for the bankruptcy claims, leading to the decision to terminate bankruptcy on this day.