[Aju News DB]
South Korea's debt-stricken Hanjin Shipping said Friday it has been allowed to sell its US operation in charge of the Long Beach terminal in California as part of efforts to secure cash through the sale of assets.
Hanjin said in a regulatory filing that It has appointed a legal advisor for the sale of its 54-percent stake in Total Terminals International (TTI), which operates two facilities in Long Beach and Seattle.
Geneva-based Mediterranean Shipping Company S.A. is the second largest shareholder with 46 percent and can exercise preemption. TTI handles some 30 percent of cargo along the US west coast.
Hanjin, which filed for court receivership on August 31, has been under pressure to speed up the sale of assets and a cut in its manpower. It is saddled with a debt estimated at six trillion (5.3 billion US dollars) at the end of June.
The proposed sale of a stake in TTI came after Hanjin agreed with union leaders to reduce its manpower after the sale of assets. Bidding managers would receive letters of intent by October 28 and written proposals on November 7.
Hyundai Merchant, the country's second-largest shipper controlled by creditors, plans to submit a preliminary bid for Hanjin's assets including its Asia-US route which has generated sales of up to four trillion won annually.
Financial regulators have suggested Hyundai Merchant could acquire healthy assets from Hanjin to maintain the competitiveness of South Korea's embattled shipping industry.
Aju News Lim Chang-won = cwlim34@ajunews.com
reporter
Park Sae-jin
swatchsjp@ajunews.com
