South Korean bulk carrier Korea Line has signed a 37bn won (US$31.5m) deal to purchase some assets of Hanjin Shipping.
The deal, which is set to be completed on January 5, 2017, reportedly includes the business network and client information of Hanjin’s Asia-US route, as well as subsidiaries in seven countries comprising the US, China and Vietnam, and 574 workers based in South Korea and overseas.
Following Hanjin’s filing for court receivership in August this year, in November Korea Line was chosen as the preferred bidder over Hyundai Merchant Marine (HMM).
At the time, the court gave the bulk carrier the first right to buy five Hanjin’s container vessels, which could move 6,500 containers each, and the company’s 54% share in in Total Terminals International (TTI), which operates Pier T at the Port of Long Beach in California.
However, Korea Line later announced that its deal did not include the vessels or the stake in the terminal operator.
The Wall Street Journal reported that the company is expected to have further talks with Hanjing over the ships and terminal stake up to January 5, when its first right to these assets will expire.
Korea Line and HMM were reportedly the only companies which submitted final bids on November 7.
Despite three other companies submitted initial letters of intent in October, they failed to make final bids following due diligence conducted on Hanjin’s operations in the US from October 31 to November 4.
According to Alphaliner, Hanjin’s transpacific network is “unattractive” to those shipping lines which are already active in the trade.