US court gives Hanjin Shipping temporary protection

[THE INVESTOR] Hanjin Shipping was granted temporary protection by the US Bankruptcy Court on Sept. 6, preventing creditors from seizing the shipper’s vessels in the US, according to media reports.

The ruling, by Judge John Sherwood, is temporary and a final decision will be made on Sept. 9.

The shipper plans to seek legal protection of its assets in 43 countries, according to the Financial Services Commission.

Hanjin Shipping sought bankruptcy protection under Chapter 15 at the US Bankruptcy Court in New Jersey last week, days after the company filed for court receivership in South Korea on Aug. 31.

South Korea’s largest container carrier entered court protection after its creditors decided to halt financial support to the company.

By Ahn Sung-mi (sahn@heraldcorp.com)