Hanjin Shipping Co., South Korea’s largest container shipping firm, has filed for bankruptcy protection in the United States in a bid to prevent its vessels from being seized by creditors.
The company on Friday filed for protection under chapter 15, the section of the US bankruptcy code that deals with international insolvency matters, the Wall Street Journal reports.
The filing in a court in Newark, New Jersey, came two days days after Hanjin sought protection in South Korea.
The move has roiled ports in the US and beyond, as creditors seized ships and terminal operators refused to handle cargo, stranding Hanjin’s container ships loaded with appliances, electronics and other consumer goods, the Journal said.
Hanjin is ranked as the world’s ninth largest container shipping company, transporting over 100 million tons of cargo a year.
Its failure would be the largest container-shipping failure in history, dwarfing all previous carrier bankruptcies, according to the report.
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