On 1 September 2016, the Korean Court issued orders commencing
rehabilitation proceedings for Hanjin and staying proceedings
against it and its assets (Korean Orders).
The purpose of the Korean proceeding is to rehabilitate the
insolvent debtor company, Hanjin, by restructuring its debts. The
debts are restructured according to a rehabilitation plan approved
by the creditors and the Korean Court. The aim is to protect Hanjin
while it trades out of its debt.
Foreign creditors should note that Canadian maritime law
recognizes foreign maritime liens, whatever the underlying claim,
and grants them the priority of a Canadian maritime lien in
Canadian proceedings. That said, the foreign maritime lien must
have arisen by application of the substantive law of the
jurisdiction most closely connected with the cause of action. Some
Hanjin creditors have commenced in rem proceedings against Hanjin
vessels in Canadian waters in the Federal Court of Canada. There
are currently
