Lack of Planning Hampers Hanjin Shipping Bankruptcy

The Hanjin Shipping Company filed for bankruptcy in South Korea on Aug. 31, and sought recognition of that bankruptcy in the United States under Chapter 15 of the bankruptcy code, which governs such matters. In the meantime, there has been apparent chaos as ships have been milling about off shore, stranding cargo and crew and even a filmmaker in a kind of insolvency limbo, the International New York Times DealBook blog reported. Perhaps what is most surprising about this entire event is the apparent lack of planning that went into this bankruptcy case. It certainly does not reflect well on the company’s board, which should have gotten bankruptcy professionals involved early to prepare the bankruptcy filing and account for the company’s assets throughout the world. This could have been a moment for the Korean insolvency system to shine. But that would have required advanced planning on both the insolvency and financing side. Read more.