Terminal Investment Limited – jointly owned by MSC and Global Infrastructure Partners – will become the largest owner of Total Terminals International, which Hyundai Merchant Marine will also own a stake in.
A federal bankruptcy court judge on Wednesday approved the sale of Hanjin Shipping’s stake in a company that operates the largest container terminal at the Port of Long Beach, as well as a terminal at the Port of Seattle.
Judge John Sherwood of the U.S. Bankruptcy Court in Newark, N.J. approved the sale of Hanjin’s 54 percent stake in Total Terminals International (TTI). Judge Sherwood said he was convinced U.S. creditors would be treated fairly, but the ruling is subject to appeal until Jan. 27. The deal is expected to close after that date.
Judge Sherwood made his ruling after holding a telephone conference with a South Korean judge involved in the main Hanjin bankruptcy proceedings in Seoul.
Terminal Investment Ltd. (TIL) will pay $78 million for TTI and relieve Hanjin of $54 million in debt for its 54 percent stake in TTI.
Meanwhile, Hyundai Merchant Marine (HMM), which is the remaining large South Korean container shipping company, said Thursday its board of directors decided to purchase a 20 percent stake in TTI and the equipment leasing company HTEC for $15.6 million, which it said was at “low investment costs.” HMM said Mediterranean Shipping Co. (MSC) will “stand surety” for TTI’s loans so HMM is not responsible for TTI’s debts.
HMM will receive the same port tariff rates as MSC, which will reduce terminal handling costs and “secure stable profitability,” HMM said. MSC and HMM are expected to be the primary users of the TTI facilities.
HMM said it will strengthen and improve the “sales competitiveness” of its Asia-U.S. services through a strategic cooperation with the 2M Alliance of Maersk Line and MSC beginning this April, expanding its basic slot allocation and improving its competitiveness with its TTI stake.
TIL, which now becomes the largest owner of TTI, has terminals scattered around the world. TTI is jointly owned by MSC (65 percent) and Global Infrastructure Partners (35 percent).
U.S. judge approves sale of Hanjin’s stake in TTI
