Hanjin shares tumble on closure of Europe business

Shares in embattled South Korean shipper Hanjin have tumbled on Monday after the company said it would close its European business.

The firm said it planned to pull out of more than 10 countries, including its regional headquarters in Germany.

Shares plunged to close 12% lower.

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.

The company has since been granted legal protection preventing its ships from seizure in various ports including South Korea, the US and Japan.

Hanjin Shipping expects to start the closure process in Europe later this week after obtaining approval from the Seoul Central District Court.

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Earlier this month, the company got approval to auction its major assets, including its Asia-US route network, in order to pay back creditors.

Hanjin's bankruptcy is the largest to hit the shipping industry and affected global supply chains.

Before the bankruptcy, Hanjin was the world's seventh-largest container company and had been unprofitable for four of the past five years.

The global economic downturn in recent years has affected profits across the cargo shipping industry.