MOL to Take USD 209 Million Hit from Daiichi Chuo Bankruptcy
Tokyo-based shipping company Mitsui O.S.K. Lines (MOL) expects to record an extraordinary loss of around JPY 25 billion (USD 209 million) after the company’s equity method affiliate Daiichi Chuo Kisen Kaisha filed for civil rehabilitation procedures at the Tokyo District Court today.
MOL will report the projected loss in consolidated financial results for the second quarter of the fiscal year ending March 31, 2016. The company also said that ”the impact of the extraordinary loss on the business performance for the full fiscal year is currently under close examination.”
As World Maritime News reported earlier today, dry bulk specialist Daiichi Chuo Kisen Kaisha and its wholly-owned subsidiary Star Bulk Carrier filed for debt rehabilitation proceedings after recording losses for the past four years.
MOL has a 16.5% stake in Daiichi Chuo, the fifth largest shipping company in Japan with a fleet of around 170 ships.
The bankrupt company will be delisted from Tokyo Stock Exchange on October 30.