Executive Briefings

Hyundai Merchant Marine Considering Hanjin Route

South Korea's Hyundai Merchant Marine said this week it may submit a preliminary bid for Hanjin Shipping assets used in Asia-to-U.S. routes - a sale that could be key to Hanjin's prospects for paying off creditors. Hanjin, which filed for court receivership on August 31 after its creditors cut off financial support for the firm, put up manpower and logistics systems, five container ships and 10 overseas businesses for sale last week.

Shipping sources in South Korea have said that potential interest in the assets is unclear, particularly for the manpower and logistics systems that established shippers already have. But they added that the networks and systems could be valuable to a newcomer looking to enter the shipping industry. Likely valuations for the assets were not immediately known.

A bid by Hyundai Merchant Marine would be looked on favourably by the South Korean government if it helps Hyundai Merchant Marine expand market share or normalise its business, government sources have said.

A Hyundai Merchant Marine spokesman said that while the firm was considering the bid it had not made a final decision.

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Shipping sources in South Korea have said that potential interest in the assets is unclear, particularly for the manpower and logistics systems that established shippers already have. But they added that the networks and systems could be valuable to a newcomer looking to enter the shipping industry. Likely valuations for the assets were not immediately known.

A bid by Hyundai Merchant Marine would be looked on favourably by the South Korean government if it helps Hyundai Merchant Marine expand market share or normalise its business, government sources have said.

A Hyundai Merchant Marine spokesman said that while the firm was considering the bid it had not made a final decision.

Read Full Article