Cho Yang fades into history

The leading Korean ocean going shipping company, Cho Yang Line (CYL), has finally faded away. The Seoul District Court on August 24 abrogated CYL's court receivership application, declaring it bankrupt.

The world shipping industry is keeping its eyes on this case, as CYL has been one of the leading international shipping companies for the last 40 years. A source at CYL revealed that the only thing left is to dispose of its property through discussions with creditor groups under the coaching of its court appointed legal manager. This wrap-up process seems to be speedy after the August 24 decision. It is said that the paper Samil Accounting Co. submitted to the court on August 16 played an important role in this decision. In the report, it wrote that Cho Yang Line has a much higher liquidation value, 130 billion won, than it does as a business with only 70 billion won in worth.

To solve unpaid salaries and retirement allowances, CYL already tried to keep in touch with several domestic shipping companies to sell its operating rights for Korea/China trade as well as share its allocation in Korea/Japan trade. HanSung Shipping Co. paid a large sum for these rights.

If HanSung Shipping is involved in the trade, new demand will be formed based on the existing sales networks of HanSung Shipping, a relevant industry official expected.
For this business, both sides finished the necessary paperwork to deploy vessels earlier than expected in Korea/Japan trade, and to get operating rights transferred as soon as possible.