The bulker company said on Tuesday it has liabilities of JPY 176.4bn ($1.4bn).

Its subsidiary Star Bulk Carrier Co has also filed for bankruptcy protection with liabilities of JPY 56.9bn.

Its filing comes after weeks of persistent rumours that the company would seek court protection, chatter which intensified in the wake of GMI’s Chapter 11 filing in the US. 

The Nikkei daily reported that trading in Daiichi shares was halted earlier in the day as news of the likely filing emerged.