According to foreign media reports on September 20, a South Korean bankruptcy court on Monday ordered Hanjin Shipping Co. (117930.SE) to return the chartered vessels to the owner and sell as many of their own vessels as possible. The strongest signal to date indicates that the debt-ridden Korean shipping company will be liquidated or reduced to a much smaller company.

Foreign media reported on Friday that Hanjin Shipping is working on a restructuring plan. If approved by the court, it will retain up to 15 of its own 37 vessels, and almost all of the 60 vessels leased will be returned to the owner. Hanjin Shipping has filed for bankruptcy protection in US and South Korean courts. According to capacity, the company is the seventh largest shipping company in the world.

The freight broker estimates that Hanjin Shipping retains a chartered vessel with a daily loss of at least $2 million. Han Jin Shipping spokesman Min Park said on Monday that Hanjin Shipping has returned four ships to the shipowners, and other ships will be returned to the ship owners after unloading.

The South Korean government has strongly hinted that there is no plan to rescue the company.

According to Seoul court officials, the court will decide in December whether it will accept the reorganization plan of Hanjin Shipping or let the company go bankrupt.