Asia/Pacific News
Daiichi Chuo Announces Financial Support for Reorganisation Efforts
Japan-based dry bulk carrier Daiichi Chuo Kisen Kaisha (DCKK) Wednesday announced that it has as entered into ¥2.29 billion ($20.3 million) worth of investment agreements with its main creditors, including 14 vessel owners and shipyards.
One of the creditors is said to have signed a ¥390 million ($3.4 million) loan deal with DCKK on Wednesday as well.
"Receiving financial funding (including investments) from the maritime cluster is the best method to promptly and surely reorganise our business and to maximize repayments to our creditors," stated DCKK.
The announcement has come after the Tokyo District Court was reported to have granted DCKK a deadline extension for the submission of the company's proposed rehabilitation plan, giving DCKK until March 31 to submit the plan instead of February 3.
The company says it will now set out a provision in its rehabilitation plan to be submitted to the Tokyo District Court to acquire all existing shares without consideration.
"After the confirmation of the rehabilitation plan, DCKK will acquire and cancel the said shares, and will issue new shares through third-party allocation to which the maritime cluster will subscribe to, becoming DCKK's new shareholder."
New President Appointed
Alongside the company's funding announcement, DCKK also announced that it has appointed a new president, subject to a resolution at a General Meeting of Shareholders set for late June 2016 and subsequent board resolution.
Toshihide Egawa, who is currently fulfilling the role of Director and Managing Executive Office, is set to become the new Representative Director and President Executive Officer of the company.
In September, Ship & Bunker reported that DCKK had filed for bankruptcy protection with roughly ¥120 billion ($1 billion) in liabilities.
