Hanjin Shipping in talks to sell Long Beach Terminal stake to MSC

October 20, 2016 8:54 PM EDT

A tugboat passes Hanjin Hungary container ship at PSA's Tanjong Pagar terminal in Singapore September 28, 2016. REUTERS/Edgar Su/File Photo


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By Joyce Lee

SEOUL (Reuters) - Hanjin Shipping Co Ltd <117930.KS> is in talks to sell its stake in the Long Beach Terminal in California to Geneva-based Mediterranean Shipping Company S.A.(MSC), a spokesman for the Seoul court overseeing the shipper's receivership said on Friday.

Hanjin Shipping owns a 54 percent stake in Total Terminals International LLC, which operates Long Beach Terminal in the U.S. MSC owns the remaining 46 percent.

It has appointed an advisor, an overseas firm specializing in shipping industry talks, to help with the negotiations, the court spokesman said.

Hanjin, the first major shipping line to be dragged down by global industry overcapacity and low freight rates, put up other assets such as its U.S.-Asia route manpower and logistics systems, five container ships and 10 overseas businesses, for sale earlier this month.

Hyundai Merchant Marine Co Ltd <011200.KS> said it is considering submitting a preliminary bid for Hanjin assets used in its U.S.-Asia routes, but prospects for additional interest are unclear.

Hanjin, which filed for court receivership on Aug. 31 after its creditors cut off financial support for the firm, had total debt of 6.03 trillion won ($5.4 billion) as of end-June.

(Reporting by Joyce Lee; Editing by Stephen Coates and Edwina Gibbs)



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