SAMSUN Logix, one of South Korea’s largest bulker operators, has become the latest shipping company to apply for court protection following a cash flow crisis caused by the financial difficulties at Armada (Singapore), Britannia Bulk and Industrial Carriers.
The company, which owns 15 bulkers and has another four newbuildings on order, lodged an order for court receivership, similar to bankruptcy protection, at Seoul’s central district court Feb. 6th.
The demise of Armada and others had a major impact on Samsun.
We are a victim of the recent maritime casualty that caused the collapse of Britannia, Armada, ICI and others,” said the source.
Samsun Lunix is believed to have been owed about $40m alone by Armada (Singapore)
They might be liquidated, or, the bank might decide to find someone to operate their ships until the market improves.
If the Seoul district court approves Samsun Lunix’s application, the court will appointed a group of representatives from the company and creditor banks to work out a reorganisation and restructuring plan. The shipping company’s largest creditor bank is Shinhan Bank.
The restructuring could involve the sale of vessels, redundancies or the sale of the business.
The firm’s fleet comprises capesize, panamax and handysize vessels built in the 1980s and 1990s. The oldest vessel is the 1982-built, 21,289 dwt Ataraxia, while the youngest is the 1999-built, 69,406 dwt Clio.
There are four newbuildings on order including two 57,000 dwt bulkers at STX Shipbuilding that are due for delivery in 2010 and two vessels on order at a Chinese yard, the company insider said.
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