Korea’s dry bulk shipping company Daebo International Shipping Co. Ltd. filed an application for rehabilitation proceedings on 11 February 2015, marine insurer Skuld said citing an update provided by Messrs. Choi & Kim.
Under the rehabilitation proceedings in Korea, similar to the Chapter 11 proceedings in the United States, a company is allowed to ultimately survive and continue operation, albeit in a restructured form.
Should the court grant the petition, Daebo’s further dealings will be subject to regulation by the court. A receiver would be appointed by the court and a timetable would be set for the further progress of the procedure.
In addition, Daebo would be requested to file their claims to the receiver, and should they be rejected then the claim must be brought to the court to determine.
“This will have an impact on all creditors and debtors to Daebo, and members should review any open position or account they may have in relation to business dealings with this company,” Skuld said.
This could include unpaid bunker supplies, port and pilotage dues, lien claims on outstanding hire and freight, cargo claims or other indemnity claims, according to Skuld.
Daebo is the third bulker firm to file for bankruptcy protection after Danish Copenship and China’s Winland Ocean Shipping amid volatile dry bulk market that has seen plunging of the Dry Bulk Index to new record lows.