Port of Seattle may block sale of bankrupt Hanjin’s waterfront operation

The port and the proposed new house owners of the Terminal forty six operation middle are at odds over whether or not an $eleven million safety deposit is required underneath a lease that stretches via 2025.

The Port of Seattle is objecting to the sale of the operations middle at Terminal forty six, the place bankrupt Korean delivery firm Hanjin is making an attempt to unload its enterprise to one of many world’s largest cargo companies.

The Northwest Seaport Alliance, which operates the Seattle and Tacoma ports, says it hasn’t acquired monetary background info or a safety deposit from the proposed new house owners of the terminal facility.

On Friday, it requested a decide to dam the pending sale until the consumers arms over the monetary paperwork and pays a minimal one-yr lease cost of $eleven.25 million.

Final month, Switzerland-based mostly Mediterranean Delivery and its affiliate, Luxembourg-based mostly Terminal Funding Restricted, agreed to purchase a majority stake within the Terminal forty six operation from South Korea’s Hanjin, which went bankrupt in August. Hanjin, which has leased the central Seattle waterfront terminal since 1991, shipped cargo from its own vessels and oversaw the unloading of all containers at the facility.

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Lawyers for the port said in court documents that they’re not necessarily trying to derail the sale but want to do their due diligence to ensure the new terminal operating company is fit to take over Hanjin’s old lease, which stretches through 2025.

Terminal Investment said its interpretation of the lease is that it doesn’t need to provide a security deposit, court records show. Previously, Hanjin had provided only a corporate guaranty that it would fulfill the lease, but those assurances are now worthless because the company is bankrupt.

A hearing on the port’s objection is set for Thursday in U.S. Bankruptcy Court in New Jersey, where Hanjin filed for Chapter 15 protection. If it’s denied, officials at the seaport alliance said they’d work with the new owners to try and come up with a different security deposit or background check. They don’t necessarily intend to end the lease altogether.

The dispute arose after Mediterranean and Terminal Investment agreed in December to pay $78 million to purchase Hanjin’s controlling stake in Total Terminals International, which controls terminal operations at the Long Beach and Seattle ports….

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