Efforts to sell Polaris Shipping, a Korean operator of large bulk carriers, have been dealt a severe blow this week with the police in Seoul raiding the owner’s headquarters in an embezzlement case.
The raid took place on Monday morning with documents and hard disks taken away with the Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency saying they are investigating Mo Han and Mo Kim, the co-CEOs of Polaris Shipping, for the misappropriation of KRW50bn ($37.78m). The money was lent to Polar Energy & Marine, the holding company of Polaris, to secure the company’s management rights, the police claim.
Polaris management had been assessing up to 20 takeover bids prior to the police raid, having sought out preliminary bids in May and employing Lazard Asset Management to investigate a possible sale.
The company is one of the biggest large bulker operators in the world with a fleet focusing on newcastlemaxes and very large ore carriers. Internationally, it is best known for the sinking of the Stellar Daisy six years ago, one of the most high-profile bulker casualties of the 21st century and the first in a series of accidents to hit the shipping line in quick succession.
Polaris is one of a host of Korean shipowners that have been put up for sale this year, a list which includes HMM, Hyundai LNG Shipping, H-Line Shipping and the tanker division of SK Shipping.
