South Korean shipping company Korea Line Corp. has been selected as the preferred bidder for bankrupt Hanjin Shipping’s Asia-US route and for the firm’s stake in a container terminal at California’s Long Beach, local media reports.
Korea Line has outbid its compatriot shipping company Hyundai Merchant Marine (HMM), after both companies submitted their final proposals to buy Hanjin’s assets last week.
The asset sale is expected to be completed this month, local media said, adding that the price of the Asia-US route could reach up to 85.4 million.
Hanjin owns a 54 percent stake in terminal operator Total Terminals International (TTI), which operates two facilities in Long Beach and Seattle.
The company’s Asia-U.S. route reportedly brings up to KRW 4 trillion (USD 3.4 billion) per year, and its market share stands at 7 percent, which is the sixth-largest among global shipping companies.
Hanjin filed for court protection in August 2016 after its creditors, led by Korea Development Bank (KDB), decided not to provide additional financial support to the company.
The company is now seeking to sell its assets to repay debt which amounted to KRW 6 billion at the end of June.
World Maritime News Staff