Hanjin Shipping Is Planning to Shut Down Its European Business

October 24, 2016, 9:15 AM UTC
Hamburg, Eurogate, Containerschiff
(GERMANY OUT) Deutschland, Hamburg, Hafen, Containerhafen, Eurogate, Containerschiff der Hanjin-Linie (Photo by Rainer Waldkirch/McPhoto/ullstein bild via Getty Images)
Rainer Waldkirch/McPhoto/ullstein bild via Getty Images

Hanjin Shipping is reportedly planning to close down its European operations, marking the South Korean giant’s latest shedding of assets after filing for court receivership in August.

The firm expects to begin shutting down all 10 of its branches in the region as early as this week, a company spokesman told reporters on Monday. It has obtained approval from the court handling its receivership in Seoul.

Shares of the company plunged by 12% on the news, the biggest drop in about a month, according to Bloomberg.

Hanjin has put up other assets for sale, including the operations used in its routes from Asia to the U.S., which garnered interest from another South Korean company, Hyundai Merchant Marine. Preliminary bids are due by the end of this week, with the goal of an agreement being signed by mid-November, according to The Wall Street Journal.

Last week, Hanjin also entered talks to sell its controlling interest in the Long Beach Terminal in California to Geneva-based Mediterranean Shipping Company, which owns the remaining 46% stake, according to Reuters. And in September, a South Korean judge ordered that all of Hanjin’s chartered ships be returned to their owners.

The flailing firm announced plans last week to lay off almost 60% of its 700 land-based workers. A court will review by December at the latest whether Hanjin should be permitted to continue operating, or be completely liquidated, according to the Journal. Hanjin has yet to submit a full recovery plan.

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