Asia/Pacific News
Court Gives Daiichi Chuo Kisen Kaisha Until February 2016 to Submit Rehabilitation Plan
Tokyo District Court has given Japanese bulker operator Daiichi Chuo Kisen Kaisha approval to commence civil rehabilitation on October 5, media reports.
The firm has until February 3, 2016 to submit a rehabilitation plan.
Under the rehabilitation, Daiichi Chuo will work with its business partners and creditors to settle its debts, which according to a US Chapter 15 filing totals about $1 billion to 596 creditors, including Hyundai Merchant Marine, Navios, Vale, Rio Tinto Shipping, and Pan Ocean.
The struggling bulker operator, which is the fifth largest shipping company in Japan, controls 185 vessels, of which 45 are owned.
Although the Tokyo court has suspended repayment of its debts, the company can still continue to pay expenses in order to maintain operations.
Creditors have until December 7 to file their claims, and Daiichi Chuo has until December 25 to assess and declare its assets.
Daiichi Chuo had reportedly been growing its fleet despite worsening market conditions after 2008, and it did not begin downsizing its fleet until 2012, when it became clear that Chinese demand was not returning.
