[THE INVESTOR] A South Korean bankruptcy court said on Sept. 21 that embattled Hanjin Shipping would not be able to stay afloat without resolving mounting debts, including unpaid charter fees.

Since the nation’s largest container carrier, filed for receivership last month its unpaid vessel leasing fees have surpassed 40 billion won (US$ 35.74 million).

The Seoul Central District Court which oversees the near-bankrupt shipper’s receivership warned that the company could face liquidation if the debts are not cleared as cargo owners are expected to file compensation suits against Hanjin any time soon. 



“Hanjin Shipping’s liability for cargo damages is expected to exceed 1 trillion won even when if take a conservative estimation,” an official at the court said.

“If it does happen, setting up a rehabilitation plan is realistically impossible,” he said

To avoid its bankruptcy, Hanjin has begun returning chartered ships to their owners and is trying to secure enough funds to help unload an estimated $14 billion in cargo initially trapped on its ships around the world.

The container carrier is scheduled to submit a rehabilitation plan in December.

By Park Han-na (hnpark@heraldcorp.com)