Shagang Shipping Joins the Bankruptcy Club
Depressed bulk shipping market has taken another victim as Chinese dry bulk shipping company Shagang Shipping joins companies seeking bankruptcy protection.
Shagang Shipping has filed for voluntary liquidation with a Hong Kong court ahead of its creditors’ meeting to be held on March 5th, as informed by China Marine Services Network.
Shagang Shipping has been involved in a marathon-long dispute, estimated to be worth USD 70 million in claims, with its compatriot HNA Group over a charter deal.
Fok Hei Yu and John Howard Batchelor of FTI Consulting HK will act as the company’s liquidators, reports said.
Volatile dry bulk market plagued by supply overcapacity has seen plunging of the freight rates as the Dry Bulk Index (BDI) fell to historically low levels. The drop has had a ripple effect across the board as companies report lower profits and some even resort to bankruptcy.
Shagang Shipping is the fourth dry bulk operator to go bankrupt over the recent period. The three bulk companies that have already filed for bankrupcy protection are South Korean Daebo Shipping, Danish Copenship and China’s Winland Ocean Shipping.
World Maritime News Staff