The US Bankruptcy Court has approved the USD 78 million sale of Hanjin Shipping’s stake in terminal operator Total Terminals International (TTI) to Terminal Investment Limited (TIL), an affiliate of the Swiss Mediterranean Shipping Company (MSC), Reuters reports.
The sale of Hanjin’s 54 percent stake in TTI, which operates container terminals at the Port of Seattle and the Port of Long Beach, was given nod by the Seoul Central District Court in December. Following this, the South Korean bankruptcy court sought approval from US authorities, including the relevant ports.
In late December, the Long Beach Board of Harbor Commissioners gave its approval for the deal, under which MSC will take over sole control of the long-term lease of the port’s largest terminal, the 381-acre Pier T container terminal.
The remaining 46 percent stake in the terminal operator is already held by MSC.
The transfer of the sale’s proceeds to South Korea would also be approved, Reuters cited US Bankruptcy Judge John Sherwood as saying.
The approval may reportedly help prevent a bankruptcy filing by TTI as the terminal operator recorded a decrease in its container throughput after Hanjin filed for court protection on August 31, 2016.