It's a classic tragedy of the commons. If all their creditors let them unload in an orderly fashion, they'll get a better return on what they're owed (making a complete guess at some numbers, maybe 30% instead of 20%). But if one creditor can sieze a ship they might be able to get back 100% of what they were owed, and screw the other guys.

The way this is supposed to be solved is bankruptcy protection; no-one can claim their specific debts, the administrator will figure out the best way to get as much money as possible and distribute it equally. I suspect the problems in this case are mostly caused by the international aspect: Korea may recognize a bankruptcy but that doesn't necessarily mean all the ports around the world do. I'd guess that international bankruptcies are probably rare enough that the system hasn't really been ironed out yet.

I'm not sure where insurance comes into it?