However, less than two months after placing the new ship orders, the 2008 Global Recession started, with the bankruptcy of Lehman Brothers. Hanjin handled a major portion of the traffic on the transpacific lane (Asia to Americas) and Asia-Europe lane. Thus, as these economies retracted, they had a major and direct bearing on the company. Hanjin resultantly reduced it's ship orders, but still had seven ships delivered in the period 2010-2013, doubling company debt to $8Bn in the same period, just as the European interest rate crisis further cut back container demand. To bring additional liquidity to the business, KAL acquired 33.2 percent of Hanjin Shipping in June 2014. By August 2016, the company owned only 44 per cent of the container fleet in operation, and the rest was chartered-in. By FY2015, container shipping rates were 8% below those in FY2010, resulting in financial losses on many routes, bringing a huge strain to the companies balance sheet. Bankruptcy Liquidation In April 2016, Hanjin applied to its creditors for debt restructuring, in order to avoid formal insolvency proceedings. Hanjin Shipping's creditors withdrew their support after deeming a funding plan by parent company Hanjin inadequate. On 31 August 2016, Hanjin filed for receivership at the Seoul Central District Court and requested the court to freeze its assets, after losing support from its banks the previous day. After Hanjin's receivership was publicized, creditors confiscated assets and Hanjin vessels experienced access issues in ports globally because service providers were not informed if and how they would be paid to load and unload Hanjin vessels . On 2 September 2016 Hanjin Shipping Co. filed papers in U.S. Bankruptcy court in Newark, New Jersey that would allow its vessels to dock without its ships, cargo or equipment being confiscated by creditors. Shortly after its receivership, experts predicted Hanjin Shipping was likely to be liquidated. In the following months, Hanjin Shipping announced it would shut down offices around the world, lay-off workers, sell remaining assets, and discontinue most services. On 17 February 2017, Hanjin Shipping Co. was declared bankrupt by South Korean courts. Aftermath and legacy Hanjin Shipping was the largest bankruptcy in the container transport industry and it caused worldwide supply chain and shipping disruption as cargo ships were left stuck at ports and canals waiting for cash payments. Hanjin's bankruptcy created a massive ripple effect. Other businesses that rely on physical products found themselves without