Failed South Korean container carrier Hanjin Shipping Co Ltd (117930.KS) told a U.S. judge on Friday that cargo owners were withholding up to $80 million in payments for completed shipments, complicating the company's ability to move stranded freight. "Hanjin is not the only bad guy here," Ilana Volkov, an attorney for the shipping company, said at a status hearing at a U.S. Bankruptcy Court in Newark, New Jersey. Hanjin lawyers said that many cargo owners had received their goods on credit but have yet to pay the shipping company.

Hanjin Shipping’s biggest shareholder and lead creditor are to provide funding to pay for the unloading of cargo from dozens of ships stranded at sea after the Korean company collapsed into bankruptcy, The Guardian reported. An estimated $14bn of cargo was trapped on Hanjin ships when the world’s seventh-largest container carrier collapsed late last month, creating havoc before the holiday shopping season. Korea Development Bank (KDB), Hanjin’s lead creditor, will offer a 50bn won (£35m) credit line.

Korea Development Bank (KDB), the lead creditor of Hanjin Shipping Co Ltd is considering lending about 50 billion won (34.51 million pounds) to help unload stranded cargo, a source with direct knowledge of the matter said on Thursday, Reuters reported. An estimated $14 billion of cargo was trapped on Hanjin ships when the world's seventh-largest container carrier collapsed late last month, creating havoc ahead of the crucial holiday shopping season.

The South Korean court overseeing Hanjin Shipping's receivership said a rehabilitation plan is "realistically impossible" if top priority debt such as backlogged charter fees exceed 1 trillion won ($896 million), South Korea's Yonhap newswire reported on Wednesday. Hanjin Shipping, the world's seventh-largest container carrier, filed for receivership late last month in a South Korean court and must submit a rehabilitation plan in December.

All Hanjin Shipping Co Ltd chartered vessels that have completed unloading their cargo have been told to cancel their charter agreements and return the ships to the shipowners, a South Korean judge said on Monday. Hanjin, the world's seventh-largest container line, filed for receivership last month, leaving more than 100 ships and their cargo at sea and threatening to snarl U.S. freight traffic as the year-end shopping season approaches. Dozens of Hanjin's ships have been blocked from docking with ports and lashing firms fearing they won't be paid.

In a related story, the Yonhap News Agency reported that Korean Air Lines Co., the largest shareholder of the cash-strapped Hanjin Shipping, was unable to decide on Sunday how to provide funding for the nation's leading container shipping line. An official at Korean Air said the company convened an emergency board of directors meeting Sunday to discuss its plan to offer Hanjin Shipping 60 billion won (US$53.3 million) and help ease the cargo crisis triggered by Hanjin's receivership. The meeting was scheduled at the last minute, the official added.

South Korea's Hanjin Shipping Co Ltd, whose collapse has disrupted global trade, is considering a restructuring plan to sell more than half its ships, The Wall Street Journal reported on Friday, citing people familiar with the matter. However, liquidation remained the most likely outcome for Hanjin Shipping, the newspaper cited the sources as saying. Hanjin Shipping, the world's seventh-largest container carrier, filed for receivership late last month in a South Korean court and must submit a rehabilitation plan in December.

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.

The chairman of Hanjin Group transferred 40 billion won ($36 million) to Hanjin Shipping on Tuesday to help unload cargo stranded on the troubled shipper's vessels, a spokesman said, but regulators warned securing further funds could take "considerable time". Hanjin Group, the parent of Hanjin Shipping, pledged last week to raise 100 billion won to help rescue cargo in the wake of the collapse of the world's seventh-biggest container shipper, including the 40 billion won from Chairman Cho Yang-ho.

A key member of South Korea’s Hanjin Group agreed Saturday to a conditional bailout of the group’s shipping unit, whose collapse has sparked turmoil worldwide on the high seas. The board of group unit Korean Air, meeting for the third straight day, decided to lend 60 billion won ($55 million) to Hanjin Shipping, two thirds of whose cargo fleet is marooned at sea due to huge debts, Gulf News Shipping reported. “The board members decided to provide the loan but only in exchange for collateral (from Hanjin Shipping),” a company spokeswoman told AFP.