Asia/Pacific News
Japanese Dry Bulk Operator Denies Bankruptcy Rumours
Japan-based dry bulk operator Daiichi Chuo has denied rumours that the company is close to bankruptcy, IHSMaritime360 reports.
"The market is weak but the rumours are not true," the company said, while also confirming that the company is not entering receivership.
"The company's finances are stable."
The bulk operator has struggled in recent years, having reported a ¥7.85 billion ($63 million) loss in the first fiscal quarter beginning April 1, 2015.
The current fiscal year's debts were also reportedly recorded at ¥37.6 billion ($312 million) and long-term liabilities at ¥70.7 billion ($587 million), with industry speculation having suggested that the company's largest shareholder, Mitsui OSK Lines (MOL) would be unwilling to provide further financial backing beyond what it has already given.
So far, Daiichi Chuo has reportedly been paying charter hires on time.
"The company hasn't been doing well for some time but we have faith in it as it has honoured its contracts and has MOL's backing," said an unnamed ship operator.
Both Daiichi Chuo and MOL reportedly declined to add further comment.
Ship & Bunker reported at the beginning of the year that MOL has also seen its share of fiscal challenges in recent years, with the company having announced in January that it was planning for 2015 to be a "counteroffensive" year.
