Asia/Pacific News
TMT's Single-Ship Companies File for Bankruptcy
Twenty-three single-ship companies associated with Taiwanese shipping group Today Makes Tomorrow (TMT) have filed for bankruptcy in U.S. court, TMT said in an emailed press release.
TMT's chairman, Nobu Su, has been restructuring his shipping business for three months, and he said the Chapter 11 bankruptcy process is part of that plan.
The bankruptcy process puts the affected companies into temporary court administration, allowing them to delay the payment of some debts and avoid closing down.
The Chapter 11 process runs in parallel with mediation between TMT and Taiwanese authorities and banks.
"Over the last 10 years TMTs businesses have enjoyed considerable success, allowing us to invest in one of the most modern fleets of merchant ships in the World," Nubu Su said.
"However in the last three years, initiated by the economic downturn a combination of factors has required some of our companies to file for Chapter 11.
"The critical factor being the maturity of our credit facilities with our major lenders which has created a short term liquidity problem."
TMT compared its decision to moves by General Maritime Corporation (Genmar) and Overseas Shipholding Group (OSG), both of which used the Chapter 11 process to restructure.
TMT said in April that it was considering legal action against the Royal Bank of Scotland (RBS) over its role in the ship owner's loss of over $1 billion in 2008.
