Japanese ship owner United Ocean Group (UOG) filed for receivership in Tokyo District Court on December 31st having succumbed to over USD 1bn of debt.
The company failed to pay it dues to the creditors, including Mizuho and Tokyo Mitsubishi, due to cash flow deterioration resulting from profit slump as shipping market underwent an economic slowdown.
Namely, the tonnage supplier experienced difficulties in securing work for its vessels accruing losses and resorting to off hire.
The court filing was submitted under the name Ramos Corporation and includes all 38 Panama and Singapore special-purpose shipowning companies operating under UOG.
UOG’s financial problems started to affect the company in November and are linked to IBJ Leasing Co’s financing of the 81,918-dwt kamsarmax bulker United Prestige.
The company’s fleet comprises 40 vessels, 33 bulk carriers and 7 car carriers.
World Maritime News Staff