Hanjin share prices took a dive on Monday after the company announced it would close its European business.
A court in Seoul overseeing the company’s receivership process today approved Hanjin winding down four of its European units, including Hanjin Shipping Europe and Hanjin Shipping Poland.
The firm said it planned to pull out of more than 10 countries, including its regional headquarters in Germany expecting to start the closure process in Europe this week. Its UK offices in London, Felixstowe and Manchester will stay open.
Shares plunged to close to 12 percent lower since the announcement.
In the industry’s biggest bankruptcy to date, Hanjin Shipping filed for receivership in August after creditors refused a restructuring plan for the firm’s $5.4bn (£4.4bn) debt.
Earlier this month, a court filing said Hanjin had received legal approval to seek buyers for its assets in order to pay back creditors. The company is to receive letters of intent by 28 October.