SEOUL—Creditors of one of the world’s major shipping companies, South Korea’s Hanjin Shipping Co., said they would no longer give it financial support, pushing the company close to bankruptcy.

(Update: Hanjin Shipping Files for Bankruptcy Protection)

A Hanjin spokesman said the company’s board of directors will convene Wednesday to decide on its future course, including whether to file for court receivership.

Hanjin, the world’s ninth-largest container shipping company by capacity, would become the biggest company in the industry to go under if it fails to recover.

Shipping companies world-wide have been hit by years of slumping demand, particularly from China, as trade flows have slowed. Some companies have been forced to sell vessels at a discount, while a handful of smaller operators have already gone bankrupt.