The rehabilitation proceedings and bankruptcy protection
obtained by Hanjin in the Republic of South Korea are, therefore,
unlikely to be recognised and enforced in the UAE. In addition,
under U.A.E law, there are no equivalent provisions to the Korean
rehabilitation proceedings, and so Hanjin will be unable to obtain
a court order from a court in the U.A.E granting similar
relief.
Accordingly, there is nothing stopping Hanjin's creditors
from arresting a Hanjin-owned vessel (and in certain circumstances
a Hanjin- chartered vessel), as security for their claims, in the
U.A.E, provided there are grounds for an arrest under the U.A.E
Maritime Code. Given the litigation risk in the U.A.E, the risk to
creditors is that a U.A.E Court may take jurisdiction over the
underlying dispute. This could actually work in the creditors'
favour because it may take the debt owed to the creditors out of
the Korean rehabilitation proceedings, as the security, depending
on the form that
