Hanjin Shipping in talks to sell Long Beach Terminal stake
Geneva-based Mediterranean Shipping Company negotiating over debt-ridden South Korean partner's 54% holding
Bankrupt Hanjin Shipping Co Ltd is in talks to sell its stake in the Long Beach Terminal in California to Geneva-based Mediterranean Shipping Company S.A. (MSC), a spokesman for the Seoul court overseeing the shipper’s receivership said on Friday.
Hanjin Shipping owns a 54% stake in Total Terminals International LLC, which operates Long Beach Terminal in the US. MSC owns the remaining 46%.
It has appointed an adviser, an overseas firm specializing in shipping industry talks, to help with the negotiations, the court spokesman said.
Hanjin, the first major shipping line to be dragged down by global industry overcapacity and low freight rates, put up other assets such as its US-Asia route manpower and logistics systems, five container ships and 10 overseas businesses, for sale earlier this month.
Hyundai Merchant Marine Co Ltd said it is considering submitting a preliminary bid for Hanjin assets used in its US-Asia routes, but prospects for additional interest are unclear.
Hanjin, which filed for court receivership on August 31 after its creditors cut off financial support for the firm, had total debt of 6.03 trillion won (US$5.4 billion) as of the end of June.