Judge John Sherwood decided to confer with the South Korean court before making a decision about Hanjin’s sale of its 54 percent stake in Total Terminals International to 46 percent minority owner Terminal Investment Ltd.
A U.S. bankruptcy judge said he is likely to announce on Wednesday whether he will approve Hanjin Shipping’s sale of its stake in Total Terminals International (TTI).
Hanjin wants to sell its 54 percent stake in TTI, which operates terminals at the ports of Long Beach and Seattle, to 46 percent minority owner Terminal Investment Ltd. (TIL). Mediterranean Shipping Co. and Global Infrastructure Partners own TIL.
During a hearing in U.S. District Bankruptcy Court in Newark, N.J. on Friday, creditors, including container lessors, told Judge John Sherwood they were concerned that proceeds from the terminal sale would go to South Korea, where they believe their claims may not be treated fairly by the bankruptcy court in Seoul overseeing Hanjin’s main bankruptcy proceeding, Reuters reported. They also questioned whether the sale was getting top dollar.
With Hanjin and TTI attorneys urging approval, saying TTI is on the brink of bankruptcy, Sherwood said he would confer with the South Korean court before making his decision about the sale, which Reuters said has been approved in Korea. The news agency said TTI is being sold for $78 million to TIL in a deal that also includes forgiving $54.6 million in debt.
In December, the Long Beach Board of Harbor Commissioners approved the sale.
Earlier this month, the Northwest Seaport Alliance (NWSA), which includes the ports of Seattle and Tacoma, raised objections to the sale, but on Friday, the NWSA said it had reached an agreement with TIL regarding lease security at Terminal 46.
“This agreement allows the port to withdraw its objection to the sale. Disrupting the purchase of Total Terminals International by TIL was not the intention of the objection,” the Port of Seattle and the NWSA said. “However, the port has a responsibility to ensure the financial surety of the lease as ownership of the terminal operator changes. We look forward to continued partnership with TIL and their parent company Mediterranean Shipping Company in moving cargo through the gateway and protecting family-wage jobs and economic activity in the Pacific Northwest.”
Judge likely to rule on Hanjin’s TTI sale Wednesday
