South Korean shipping giant Hanjin to enter receivership

South Korea's biggest shipping group Hanjin is set to enter receivership after its creditors refused to provide further funding to the indebted firm.

Hanjin's board unanimously agreed to make the court filing at a meeting on Wednesday, a company spokesman said. It faces a cash shortage after failing to persuade key lenders to reschedule debt under a new restructuring plan.


Shares of Hanjin remain suspended in Seoul after plunging by as much as 29% on Tuesday. Hanjin, which is also the world's seventh-largest container line, has been unprofitable for four of the last five years.

South Korea's shipping and shipbuilding industry is one of the hardest-hit by a prolonged downturn in global trade.

A drop in orders has led to overcapacity and depressed freight rates, as well as an increase in debts.
The government is now looking to undertake a painful restructuring which will see tens of thousands of jobs lost.