South Korean bulk carrier Korea Line’s parent company SM Group has pulled out of the bidding process for the purchase of Hanjin shipping’s 54% stake in a container terminal in Long Beach, California, local media reported.
According to sources cited by South Korean news agency Yonhap, Korea Line decided to withdraw its bid after struggling to raise funds.
The two remaining bidders for Hanjin’s stake in Total Terminals International (TTI), which operates Pier T at the Port of Long Beach, are reportedly a consortium of Hyundai Merchant Marine (HMM) and the Mediterranean Shipping Company (MSC), and a Korean private equity fund.
MSC currently holds the remaining 46% stake in the terminal operator.
In November this year, Korea Line signed a 37bn won (US$31.5m) deal to purchase some assets of the troubled Hanjin Shipping.
The deal, which is set to be completed on January 5, 2017, reportedly included the business network and client information of the carrier’s Asia-US route, as well as subsidiaries in seven countries including the US, China and Vietnam, and 574 workers based in South Korea and overseas.
Hanjin Shipping filed for court receivership in August this year.