Note: The heading of this write-up formerly improperly specified Hyundai Merchant Marine as being chosen as the recommended prospective buyer for a few of Hanjin’s properties. The heading has actually been upgraded.

By Kyunghee Park

(Bloomberg)–Korea Line Corp, South Korea’s second-largest mass service provider, won a proposal for some properties ofHanjin Shipping Co in a personal bankruptcy sale managed by a South Korean court.

The business defeated bigger opponentHyundai Merchant Marine Co as the recommended prospective buyer for Hanjin’s Asia- united state service, a representative for the Seoul Central District Court stated in a textMonday Final sale records will certainly be authorizedNov 21, according to the court.

The sale notes the begin of Hanjin’s separation as a consistent depression in worldwide profession brought about weak need and also clinically depressed products prices, triggering some delivery firms like the Seoul- based driver to upload losses and also accumulate financial obligation. The procurement of the Hanjin properties will certainly note Korea Line’s entrance right into the container-shipping service, positioning a difficulty to Hyundai Merchant on the hectic united state-Asia profession course.

SEE LIKEWISE: Shrinking Hanjin Fleet Signals Fall of Korean Shipping Industry

Korea Line, which tracksPan Ocean Co amongst South Korean bulk-shipping firms, is broadening after leaving from personal bankruptcy security security in late-2013. Bought by Samra Midas Group that year, it runs 29 vessels carrying products such as iron ore, petroleum and also automobiles.

Favorable Terms

Korea Line used far better terms in its quote, consisting of tackling all staff members, the court representative stated in the text, without specifying. Also consisted of in the quote was Korea Line’s passion to purchase Hanjin’s 54 percent risk in a port terminal in Long Beach, California, according to the court.

Box delivery firms bring a large range of products such as clothing, furnishings and also bananas crammed in containers, while mass service providers deliver unpacked freight consisting of coal, chemicals and also grains.

Hanjin on Monday reported a third-quarter operating loss of 309.4 billion won ($ 263 million), broadening from a loss of 1.87 billion won a year previously. Hyundai Merchant published an operating loss of 230.3 billion won, compared to a loss of 77.7 billion won. Daewoo Shipbuilding & & Marine Engineering Co., which develops vessels utilized in the delivery market, had an operating loss of 141.3 billion won, tightening from a 646.2 billion won loss.

Hanjin declared personal bankruptcy security onAug 31 after financial institutions stopped at expanding finances. Once the globe’s seventh-biggest container line, its fleet has actually reduced to 14 ships, concerning a tenth of its previous dimension, after returning the majority of the legal vessels to proprietors on the encourage of the court.

Hanjin is likewise unwinding its Europe service and also stated recently it would certainly release concerning 700 of its staff.

The business had 7 percent market share on the Asia- united state sell the initial 6 months of this year, according toHanjin It transported 1.85 million 20-foot containers on that particular course in 2015, making up 40 percent of the overall of 4.62 million.

Hyundai Merchant will certainly concentrate on boosting its financials in the short-term and also enhancing its competition in the long-term, the business, which is undertaking a financial debt overhaul, stated in an e-mailed declarationMonday It will certainly likewise include even more container terminals in South Korea and also overseas.

© 2016 Bloomberg L.P