Creditors of Hanjin Shipping are raising questions about bidding that led to the sale of liner operator's shares in Total Terminals International to rival Mediterranean Shipping Co (MSC).
Various creditors argued in a US Bankruptcy Court in New Jersey that there were "few, if any" other bidders in MSC's efforts to buy the 54% stake of TTI, a joint venture with MSC that operates terminals in Long Beach and Seattle.
And they question whether Hanjin should have solicited more bids.
"Considering the significant amounts involved, this court should not approve the sale on the accelerated schedule that Hanjin demands," said lawyers at Wasserman, Jurista & Stolz and Simms Showers, firms that are representing creditors Beacon Intermodal, Flexi-Van Leasing and TRAC Intermodal.
Switzerland's MSC, which was originally bidding alongside Hyundai Merchant Marine before the South Korean company pulled out, is paying $78m plus forgiving $54.6m that Hanjin owes the venture. The deal includes Hanjin Shipping TEC, a Hanjin arm that provides equipment to the terminals. The sale process was run by Jefferies.
Hanjin's lawyers at Cole Schotz and Allen & Overy have objected to container leasing creditors' motion asking US Bankruptcy Judge John Sherwood to force the company to disclose more information.
"The container parties' motion to compel seeks this court to order the discovery parties to engage in a costly, time-consuming, fishing expedition," they said.
The fight comes as part of Hanjin's court-supervised restructuring in Seoul, where the case is expected to be converted into a liquidation as early as next month.
Cash bound for South Korea?
Some creditors in Hanjin's Chapter 15 bankruptcy case in New Jersey are also worried that funds from the sale will be forwarded on to the Seoul court.
Lawyers for companies with claims for debts incurred after Hanjin filed for court protection argue that the cash should remain in the US courts because South Korean law gives them the right to pursue their claims worldwide.
"We want it to stay here and have the bankruptcy court administer it," Simms Showers principal Stephen Simms told TradeWinds. "We're not sure that we're going to get a fair shake in Korea."
Akerman: Approve, with conditions
Lawyers at law firm Akerman representing Hanjin customer HSN argue that there is nothing in the sale that requires the proceeds to be repatriated to South Korea.
"This court should approve the sale conditioned upon the sale proceeds being placed in escrow," they said.
Meanwhile, the Northwest Seaport Alliance said in court papers that it will not approve of the sale without a bond from TTI. The port authority's approval is required under its lease of TTI's lease of its Seattle terminal.
