The Chinese Maritime Courts are not obliged to recognise and/or enforce foreign courts' orders, therefore Hanjin's creditors could still arrest Hanjin-related vessels in China if they have maritime claims (recognised under Chinese law) against the registered owners and/or bareboat charterers of the said vessels.
Container leasing companies and bunker suppliers could also file applications in order to request that the corresponding Chinese Maritime Courts order Hanjin to return the leased containers to Hanjin or the bunkers supplied to Hanjin in certain circumstances.
Liquidators may often consider it necessary to bring proceedings on behalf of the insolvent company to seek to recover assets or obtain compensation on the company’s behalf. If that action fails, and the insolvent company does not have the funds to meet any costs order made against it, the liquidator is potentially personally exposed to paying those costs pursuant to a non-party costs order. This could operate harshly for liquidators. Every piece of litigation has a winner and a loser.
On 21 October 2013, the financially troubled company Hainan PO Shipping applied for bankruptcy and winding up before the People’s Court of Hainan Yangpu Economic & Development Zone (“Yangpu Court”). The Yangpu Court approved the application on 31 October 2013, and the Court has since nominated the administrators of Hainan PO Shipping.