[THE INVESTOR] Debt-ridden Hanjin Shipping on Aug. 31 filed for a court-led restructuring scheme, after its creditors decided to halt their financial support to the shipper. 

Seoul Central District Court said it has received the application for court receivership from South Korea’s No.1 container carrier and the world’s seventh largest by capacity. 

According to the official with the court, it will soon call in Hanjin Shipping’s executives to discuss the process of receivership, given the seriousness of the matter. 

“We will proceed with the receivership steps as fast and fair as possible, considering the weight of Hanjin Shipping in Korea’s shipping industry and the ripple effect it will have on its employees, contractors and the national economy,” the official said. 

The authorities, then will decide whether to revive the company or liquidate it -- putting an end to the shipper’s 40 years of history. 

If the court decides to save Hanjin Shipping, the court will adjust and reschedule the debt to the level the shipper can pay off, under the court-appointed administrator. 

But market watchers believe the court will most likely declare bankruptcy since its business operations appear near impossible, as overseas creditors would impound vessels while clients will cancel their shipping contracts. 

Some overseas ports have already impounded Hanjin’s vessels on Aug. 31, on concerns that the operators would not be able to receive payments.

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