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Hyundai Marine to bid for Hanjin Shipping’s Asia-US route

[THE INVESTOR] Hyundai Merchant Marine is considering bidding for Hanjin Shipping’s Asia-US route, industry sources said on Oct. 18.

HMM, currently under a creditor-led debt restructuring scheme, is planning to submit a preliminary bid for Hanjin Shipping’s route, seen as the most lucrative, and ships that are up for sales, the sources said.

Last week, part of cash-strapped Hanjin Shipping’s assets went up for sale as the company is struggling to raise the cash needed to repay debts and unpaid bills.

The country’s No. 1 shipper, which is currently under receivership, got the nod from a local court to sell its Asia-US route, including manpower, as well as vessels and 10 overseas operations.

The Seoul Central District Court will receive letters of interest from potential buyers until 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 the price has not been fixed.

Hanjin Shipping’s Asia-US route logs sales of up to 4 trillion won annually, and its market share stands at 7 percent, the sixth-largest among global shippers.

HMM, a member of global shipping alliance 2M, is planning to expand its fleet, so it wants to buy vessels from Hanjin Shipping.

Korea Herald daum