Daiichi Chuo Files for Bankruptcy
Japanese dry bulk shipping company Daiichi Chuo Kisen Kaisha and its wholly-owned subsidiary Star Bulk Carrier Co. SA have filed for bankruptcy at Tokyo District Court, the company said on Tuesday.
The company’s shares stopped trading on Tuesday morning amid media reports on its intention to file for bankruptcy, which was followed by Daichii Chuo’s confirmation saying that its board of directors had decided to file for debt rehabilitation proceedings.
The decision stems from the deteriorating economic situation experienced by the group amid worsening market conditions that saw the company accrue JPY 119.6 billion (USD 1 billion) in liabilities, with the company’s subsidiary Star Bulk Carrier posting liabilities of JPY 56.8 billion.
Daiichi Chuo recorded losses for four consecutive years amid sluggish market driven by economic downturn in Europe and China along with high fees for charter rates that are expected to push the company’s earnings further into red this year as well.
The company is the fifth bulk carrier to fall victim of the market downturn and seek relief in bankruptcy proceedings. It is the fifth largest shipping company in Japan, with a fleet of around 170 ships.
World Maritime News Staff