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February 17, 2017 10:00 AM, EST
South Korean Court Orders Shipping Giant Hanjin to Liquidate
Lucy Nicholson/Reuters

A court in the South Korean capital, Seoul, declared struggling shipping giant Hanjin officially bankrupt on Feb. 17 and ordered the company to liquidate its assets.

The Seoul Central District Court said a bankruptcy trustee will now be appointed to head the sale of the Hanjin's assets, to help pay off debts to the company's creditors.

All creditors are required to report their right to debts by May 1, a court statement said.

RELATED: California town vows to rid itself of Hanjin shipping containers by year's end

Hanjin announced its bankruptcy in August, disrupting supply chains worldwide and leaving several ships adrift as ports were unwilling to take on a ship with no guarantee that docking fees would be paid.

Hanjin, once the world's seventh-largest container shipping firm, was put into receivership in September and was forced to produce a company restructuring plan. Experts expected it had little chance of surviving in the shipping industry though, which is now running well below capacity.

Hanjin had already been selling off major assets over the last months, including rights to use certain shipping routes.

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