Padgett, a leader of McGuireWoods’ transportation industry team, addressed the perceived scrutiny over shipping alliances as a result of the bankruptcy. “If an alliance has a weak link, then shippers will be wary of doing business with any shipping line involved in the alliance,” Padgett said.
Van Horn commented on inherent conflicts between U.S. bankruptcy law and maritime law that pose unique challenges to U.S. courts. “[T]here is a real constitutional question with regard to how far a bankruptcy court’s jurisdiction extends to maritime lienholder rights,” he said.
The Law360 article, titled “Cos. Brace For Litigation Wave As Hanjin Bankruptcy Unfolds,” is available online to subscribers. The article also is available on The Daily Bankruptcy News.