BREAKING: Hanjin Shipping Files for Receivership
South Korea’s largest container carrier – Hanjin Shipping – has just filed for receivership. Years of weak demand have negatively impacted the many maritime industries, including shipping. News of Hanjin’s situation follows reports that South Korean shipowner Hyundai Merchant Marine may avoid similar receivership after agreeing to become a subsidiary of lender Korea Development Bank. Container lessors leasing to Hanjin should take immediate steps to maximize the likelihood of recovering inventory, before any Chapter 15 bankruptcy proceeding is filed in the United States. These steps include:
1) Demanding locations of equipment 2) Connecting with depots about any unpaid amounts 3) Checking on payment of insurance premiums (where lessors are named as additional insureds) 4) Considering lease termination in advance of any bankruptcy stay
If you think your business could be affected by Hanjin Shipping’s receivership action and want to take steps to maximize the possibility of recovery of your inventory or outstanding invoices, call (410-783-5795) or email Steve Simms, Principal of Simms Showers LLP.