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Hanjin Shipping’s asset up for sale

[THE INVESTOR] Hanjin Shipping ’s assets partly went up for sale on Oct. 14 amid its struggle to repay debts and unpaid bills, industry sources said on Oct. 14.

The country’s No. 1 shipper currently under receivership got a nod from a local court on Oct. 13 to sell its Asia-U.S. route, including manpower, and vessels, 10 overseas operations, according to the sources.

The Seoul Central District Court will receive letters of interest from potential buyers by Oct. 28. Potential bidders are required to offer final bids by Nov. 4 and will be given chances to conduct due diligence.

The asset sale will be completed by the end of next month, but prices were not determined.

Hanjin Shipping was put under receivership early last month here as its creditors, led by the state-run Korea Development Bank, rejected its latest self-rescue package worth 500 billion won (US$440 million), which fell short of the 700 billion won demanded by its creditors.

Hanjin Shipping badly needs cash to repay debts and meet unpaid service bills. At the end of June, its debt reached 6 trillion won.

Korea Herald daum