It was only a matter of time before the unthinkable happened in the shipping industry. On August 31, 2016, Hanjin Shipping filed for bankruptcy protection sending shockwaves through the shipping industry. Bankruptcies are not new to the shipping industry. There have been numerous bankruptcies over the last 15 years with the most notables being Cho Yang in 2001 and Hainan POS in…
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Possible Impacts of Hanjin’s Bankruptcy on Current Shipments
By: David P. Street and Brendan Collins, IHSA Legal Council As you are probably aware, Hanjin filed for bankruptcy protection in Korea on Wednesday August 31st. The filing came just a day after the company creditor's discontinued financial assistance of more than USD $896 million to keep the company operating. The Korean bankruptcy court will determine whether Hanjin should…
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Hanjin Financial Issues
Although the International Housewares Shippers Association (IHSA) does not have a contract with Hanjin, we wanted to address their current financial situation. As expected, Hanjin did file for court receivership on August 31 after losing support of its banks. The court will decide whether Hanjin will continue to operate or be dissolved. This process normally takes two months…
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