Following failed efforts, in April 2016, for a creditor-led debt restructuring to avoid bankruptcy, Hanjin Shipping Lines formally filed for bankruptcy protection in federal court in New Jersey pursuant to Chapter 15 of the Bankruptcy Code. This follows Hanjin’s filing in South Korea for receivership.
Hanjin is the seventh-largest shipping company, representing some 7% of the trans-Pacific trade volume for the US market. These events spell trouble for customers worldwide, including members of the pyrotechnics industry located in both China and the United States; in addition to having their merchandise drifting at sea, prices for a 40-ft. container have spiked overnight, industrywide, by nearly 50%, although this price hike is considered to be temporary.
Presently, the court’s protections permit Hanjin’s ships to move in and out of designated ports located only in South Korea and the US. However, the cargo is unlikely to be unloaded without payment guarantees in place. To that end, Hanjin has reportedly earmarked some $90-million for assisting the Port of Los Angeles, and Long Beach, to ease the cargo crises there.
If your business has cargo aboard a Hanjin vessel it is imperative that you avail yourself of your rights as a bankruptcy creditor in order to obtain compensation.
For more information regarding how to formally appear in the New Jersey Bankruptcy Court as a creditor to protect your legal rights you may contact the Creadore Law Firm, P.C. We have experience representing fireworks industry members as creditors in bankruptcy proceedings and have recovered money for them. We are just 20-minutes from the Courthouse.
Past results do no guarantee success in any new or future lawsuit