Tokyo District Court has granted Japanese dry bulk shipping company Daiichi Chuo Kisen Kaisha an extension of the deadline for the submission of the company’s proposed rehabilitation plans, Daiichi said.
Daiichi announced its rehabilitation proceedings in October 2015 and was given until February 3, 2016 to submit the plans, a deadline which has now been pushed until March 31st.
“After the commencement of our rehabilitation proceedings, we have been seeking an investor in order to stabilize our business and to maximize repayments to our creditors. In light of the current conditions of the shipping industry market, we have also been considering ways of reorganizing our business without the support of an investor. While we have received several proposals from investor candidates, we have also received offers for financial funding from some of members of the maritime cluster in Japan, including vessel owners, who are our main creditors,” the company explained.
The company asked for the extension as it claims that it needs more time to examine whether its rehabilitation plan has the potential of getting confirmed at the creditors’ meeting.
Daiichi and its wholly-owned subsidiary Star Bulk Carrier Co. SA filed for bankruptcy at Tokyo District Court at the end of September.
The decision stems from the deteriorating economic situation experienced by the group amid worsening market conditions that saw the company accrue JPY 119.6 billion (USD 1 billion) in liabilities, with the company’s subsidiary Star Bulk Carrier posting liabilities of JPY 56.8 billion.
Daiichi Chuo recorded losses for four consecutive years amid sluggish market driven by economic downturn in Europe and China along with high fees for charter rates that are expected to push the company’s earnings further into red this year as well.
World Maritime News Staff