Sinking Hanjin Stocks Volatile After Trading Resumes

SEOUL,(UrduPoint / Pakistan Point News -5th Sep,2016) - Shares in South Korea's foundering shipping giant Hanjin were volatile Monday after filing for bankruptcy protection in Seoul and reportedly the US, sinking the maritime freight industry deeper into crisis.

Last week, Hanjin, the world's seventh and South Korea's largest shipping firm, filed for bankruptcy in Seoul, seeking court protection after creditors rejected its latest plan for dealing with a hulking $5.37 billion debt.

Hanjin's bankruptcy would be by far the largest in the history of container-shipping, which is suffering from its worst downturn in six decades. Holed beneath the waterline by slumping global trade and slowing growth in China, nearly half of its fleet - 67 vessels - is either stuck in port or unable to dock, with authorities fretting the company will not be able to pay its bills.

South Korean regulators allowed trading to be resumed Monday after Hanjin's court receivership was granted, but the share price plummeted by the daily limit of 30 percent shortly after the market opened.

Shares recovered to be traded 1.6 percent lower at 1,220 won ($1.1) early Monday afternoon -- but still 36 percent lower from last month and nearly 80 percent lower from a year ago. Under the receivership, the court will review the firm's financial conditions and a revival plan to decide whether to put it under a court-led recovery programme or to declare it bankrupt.

Hanjin is required to submit its revival plan by November 25.