Daiichi Chuo Kisen Kaisha, the financially struggling Japanese bulker operator that went under last September, is looking to seal a deal with a number of maritime firms from Shikoku islands in the south of the country to sponsor the company’s rehabilitiation.
Shikoku is a maritime cluster, centred around Imabari Shipbuilding, where many smaller owners are based who charter ships to larger Japanese owners.
While larger owners based in the Japanese capital have shied away from helping out Daiichi Chuo, whose fleet numbers more than 120 vessels, the Tokyo-headquartered line has had better luck in negotiations down south.
Masakazu Yakushiji, president of Daiichi Chuo, admitted earlier this week, “We’d be grateful if some major operators would come forward.” This looks unlikely, especially given the hole in finances major shareholder Mitsui OSK Lines has suffered from its links to the stricken line.
This week, a court extended Daiichi Chuo’s rehabilitation plan deadline from February 3 to March 31 as it looks to thrash out a deal with possible creditors.
Sources close to the shipping line say at least 12 Japanese companies – a mix of owners and yards – have come forward to support Daiichi Chuo. A joint investment is likely to be hatched out with no single entity having a controlling shareholding.
Daiichi Chuo filed for bankruptcy protection in Tokyo on September with 120bn yen ($1bn) in liabilities.
