Hanjin shares dive on news of European exit

Seoul

SHARES in troubled South Korean shipping giant Hanjin plunged 12 per cent on Monday after the company announced plans to shutter its European business, fuelling fears that it could be heading towards liquidation.

The company has applied for court approval to close all of its units in more than 10 countries including Germany, where it has its regional headquarters, a spokeswoman told AFP. Hanjin - the South's largest shipping company and once the world's seventh biggest - is seeking bankruptcy protection at home and in the United States after creditors rejected a plan to deal with a US$5.37 billion debt load. Its bankruptcy would be by far the largest in the history of container shipping, which is suffering its worst downturn in six decades owing to slumping global trade and a slowdown in China. The company expects to start the closure process this week after obtaining approval from the Seoul Central District Court, the spokeswoman said.