Daiichi Chuo could be broken up as part of rehab plan

Daiichi Chuo could be broken up as part of rehab plan

Senior management at bankrupt Daiichi Chuo Kisen Kaisha is debating whether to seek support for its rehabilitation as a group or whether to split up its various subsidiaries, according to the Kaiji Press in Tokyo. Arguably the highest bankruptcy during the current dry bulk downturn Daiichi Chuo, which filed for court protection at the end of September, has until February 3 to submit a rehabilitation plan.

Daichi Chuo’s parent firm is involved in deepsea dry bulk trades, while its subsidiaries Daiichi Chuo Kinkai, Daiichi Chuo Naiko and Daiichi Chuo Marine offer nearseas vessel, coastal ship and shipmanagement services, respectively.

The company has around 180 vessels on its books and some120bn yen ($1bn) in liabilities.

Splash understands that Japanese interests will come to the rescue of the 120-year-old shipping line, albeit its fleet is likely to be halved.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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