Wisdom: Daiichi Chuo’s Bankruptcy Not a Major Threat

Taiwan based dry bulk shipowner Wisdom Marine said that its business would not be significantly impacted by the recently launched rehabilitation proceedings by Japanese dry bulk shipping company Daiichi Chuo Kisen Kaisha (DCKK).

The statement has been issued to clarify claims on potential impact of the proceedings as the company leases ships to Japanese and European clients, such as NYK, MOL, K-LINE and others, including Toyko-listed Daiichi Chuo Kisen Kaish.

“Currently Wisdom Marine has eight vessels to DCKK group under time charter with total gross daily hire under USD 50,000. However, seven of them are chartered to the subsidiary of DCKK, Daiichi Chuo Kinkai, which is not part of this rehabilitation and maintains normal operation. The only vessel with DCKK has less than 6 months remaining charter period,” Wisdom Marine said in a statement.

“As of present, such a rehabilitation application does not pose significant risk to Wisdom Marine’s business,” the company added.

Daiichi Chuo Kisen Kaisha and its wholly-owned subsidiary Star Bulk Carrier Co. SA  filed for bankruptcy at Tokyo District Court on Tuesday, September 29th.

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.

World Maritime News Staff