THE LARGEST bankruptcy in the history of the shipping industry has been filed by a South Korean shipping company, a major customer of the Panama Canal.
The move came after creditor banks decided not to give financial support to keep Hanjin Shipping. afloat.
The company, considered #7 in global shipping and a regular user of the canal has facws financial problms for several months.
Hanjin Shipping accounts for 1.2% of transits through the Canal, and 2.7% of revenue received by the Cana Authoity (ACP)
Korea Development Bank (KDB), the public bank that led the negotiations on behalf of the creditors announced that it will end its support for Hanjin Shipping from September 4, according to El Economista.
The company had submitted a self-rescue plan, including the support of banks the backing of creditors and the possibility that Korean Air, one of the strongest units of the South Korean group, make a new purchase of shares.
Hanjin operated nearly 100 vessels with a capacity of 20,000 to 25,000 TEUs or containers of 20 feet long.
The bankruptcy of the company will force a charge redistribution and routes in the maritime market. Hanjin Shipping was in the register of the expanded Canal as transit number 100 on Sunday August 14 with the ship Hanjin Xiamen.