A South Korean court declared Hanjin Shipping Co. bankrupt on Friday, after ruling earlier this month that the firm's liquidation value would be worth more than its value as a going concern.

Hanjin Shipping, which was once South Korea’s largest and the world’s seventh-largest container shipper, applied for court receivership in late August after its creditor banks halted further support.

The Seoul Central District Court said in a statement it has chosen a bankruptcy administrator, and claims by creditors are due by May 1, 2017. The first meeting of creditors will be held on June 1, 2017. Hanjin Shipping will liquidate all its remaining assets to pay off debts, and the court’s stated that: “The court will, through the bankruptcy process, make efforts so the maximum of debt repayment will be conducted in a way that is fair and balanced to the creditors.”

For years, the global economic downturn had hit the cargo shipping industry, with overcapacity, lower freight rates and rising debt rates. And Hanjin had been supported by emergency loans and contributions from creditors. Also, mismanagement by top executives was blamed for the collapse of Hanjin, including the former owner’s widow who held power in 2007 with no experience in business.

(With inputs from Reuters)