Daiichi Chuo Kisen Kaisha eyes U.S. recognition of Japanese proceeding

By Caroline Salls

Pittsburgh, Sept. 29 – Daiichi Chuo Kisen Kaisha made a Chapter 15 bankruptcy filing Tuesday in the U.S. Bankruptcy Court for the Southern District of New York to gain U.S. recognition of its Japanese civil rehabilitation proceedings.

The company said on its Chapter 15 petition that its revenue declined as a result of the market’s prolonged stagnation.

“Due to factors such as China’s deteriorating economic conditions, it is unlikely that the dry bulk tramper market will take a favorable turn,” Daiichi said on its petition.

“Therefore, there is a high risk of the petitioner’s financial condition deteriorating, and for it to fall into a state of asset deficiency.”

Daiichi said it would be difficult for it to continue paying its debts as stipulated in loan agreements under its current financial conditions, and there is a risk that loans will be accelerated as a result of delayed payments, which would push the company into a state of insolvency.

“Even if the petitioner could make repayments by selling its vessels, it will undoubtedly be a significant hindrance to the continuation of the petitioner’s business,” the company said.

In addition to recognition of its Japanese proceedings, Daiichi is seeking a preliminary injunction and temporary restraining order prohibiting creditor actions.

According to court documents, Daiichi has $100 million to $500 million in both assets and debt. The company said its balance sheet as of June 30 showed ¥54,502,783,921 in assets and ¥46,795,310,126 in debt.

The company is represented by Norton Rose Fulbright US LLP.

Daiichi Chuo is a Tokyo-based bulk carrier. The Chapter 15 case number is 15-12650.

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