Korea Line is paying KRW37bn ($31.4m) for bankrupt Hanjin Shipping’s Asia – US business.

In a regulatory filing to the Korean Stock Exchange Hanjin said Korea Line would be buying its transpacific business for $31.4m, including the routes, customer information and operations in seven countries, including US, China and Vietnam.

Some 574 employees from Hanjin will also be transferred to Korea Line.The deal is due to be completed on 5 January 2017 with the proceeds used to pay off Hanjin’s creditors.

The Seoul bankruptcy court overseeing Hanjin’s receivership put the Asia – US business up for sale last month, with Korea Line emerging as the preferred bidder ahead of container line Hyundai Merchant Marine (HMM).

Primarily a dry bulk shipping company the deal represents Korea Line’s first foray into the container shipping space.The date for Hanjin to submit a draft rehabilitation plan to the bankruptcy court has been extended to 3 February 2017 from 3 December, but the company is widely expected to be liquidated.

Source: seatrade-maritime.com