By Kyunghee Park

(Bloomberg)–Hanjin Shipping Co, the South Korean container line that looked for personal bankruptcy security last month, obtained a court advisory to return all legal vessels to reduce prices while the business remains in the middle of decreasing its fleet.

Giving the ships back to the proprietors makes good sense as they were hired at high prices, a representative at the Seoul Central District Court claimed Monday, decreasing to be determined based on court techniques. Hanjin approximates it might deal with charges of around $1.7 billion for the very early return, however the agreements can be renegotiated if the business is restored, the spokesperson claimed. A Hanjin depictive decreased to comment.

The Seoul Central District Court is listening to Hanjin Shipping’s application for receivership as well as will certainly make a decision whether it can be resuscitated or must be sold off. A collapse of the company will most likely trigger fresh debt consolidation amongst container lines as they try to come through shock waves dealt with by the market, Germany’sNo 1 service provider Hapag-Lloyd AG claimed recently.

Hanjin has actually currently returned 4 box moving companies as well as 3 mass service providers to their proprietors, as well as prepares to get rid of 13 even more container service providers, the business claimed in an e-mail earlierMonday In enhancement, one ship proprietor has actually notified the business that it prepares to reclaim a container ship. Of the Seoul- based lining’s 97 container ships, 60 were hired, while amongst its 44 mass ships, 23 were rented sinceSept 11.

Stranded at Sea

The personal bankruptcy declaring by the Korean business, which regulated 2.9 percent share of the international container ship web traffic, tossed supply chains uneasy throughout top period when merchants seek to stockpile storage facilities as well as racks to get ready for the year’s largest vacation sales– Thanksgiving as well as Christmas.

About 30 percent of Hanjin’s container ships have actually finished dumping, according to Hanjin’s internet site, while 34 are still stranded mixed-up as well as 35 will certainly go back to South Korea.

Maersk Line, the globe’s largest container line, claimed in an email Monday that it remains in talks with Hanjin on the return of Maersk Sebarok ship after getting notification onSept 17 from the South Korean business that it is ending the agreement. Hi Gold Ocean No.2Ship Investment Co claimed in a governing declaring it prepares to market a mass service provider that Hanjin is going back to assist reduce losses from the annulment of the charter contract.

Korean Air

In a trouble to resurgence initiatives, the board of Korean Air Lines Co., the largest investor of Hanjin Shipping, fell short to get to a resolution when it fulfilled Sunday to talk about methods to speed up the shot of 60 billion won ($ 54 million) it had actually vowed previously. The board of the airline company will certainly reunite, though the day is unsure, a Korean Air spokesperson claimed.

Korean Air is talking about brand-new actions to relieve the interruption, Yonhap News reported Monday, mentioning individuals it really did not name.

The Wall Street Journal reported over the weekend break that Hanjin Shipping is dealing with a strategy that needs greater than halving its fleet, as well as one of the most likely situation is that it will certainly be sold off. The country’s Financial Services Commission carriedSept 1 claimed the opportunity of liquidation can not be eliminated. A rep for Hanjin Shipping decreased to comment.

Shares of the business went down 1.9 percent to shut at 1,260 won in Seoul onMonday The supply has moved 65 percent this year, compared to a 2.8 percent gain in the standard Kospi index.

© 2016 Bloomberg L.P