Asia/Pacific News
Korean Dry Bulk Owner Sees Rehabilitation Plan Vetoed
A South Korean judge has vetoed a rehabilitation plan put forward by dry bulk owner Samsun Logix, according to reports this week.
The company is understood to be negotiating with shareholders and debtors to restructure liabilities of about $360 million, but the judge ruled that the company was unlikely to be able to make its promised repayments due to the dire conditions in the current dry bulk market.
The Friday decision represents the second time a self-rescue plan put forward by the company has been dismissed.
The company originally filed for protection in July 2015, and will now submit a third plan to creditors on April 8th.
Asset sales by the company as part of cost reduction efforts is understood to have reduced the company's owned fleet to three vessels, two capesizes and a panamax.
In February of 2016 Ship & Bunker reported that Khalid Hashim, CEO of Precious Shipping Public Company Limited (PSL), warned that a wave of bankruptcies would wash through the dry bulk sector this year.
