Daiichi seeks cash from creditors

Bankrupt Japanese owner delays rehabilitation plan as it chases new investment.

Bankrupt Japanese shipowner Daiichi Chuo Kisen has delayed submitting its rehabilitation plan as it chases new investment from creditors.

The Nikkei daily reported it wants cash from shipowners, shipyards and other parties owed money after it filed for protection last September with debts of $1.4bn.

The plan will not now be sent into court for another “month or two”, the report claimed, following a failure to find sponsors for its restructuring.

It has reportedly only received two or three offers of help.

Daiichi is hoping to raise several billion yen from more than 10 trading partners.

The report said debt could climb to more than JPY 400bn ($3.34bn) as it incurs penalties for cancelling ship charters.

The Japanese owner booked a loss of JPY 7.85bn in the opening three months of its financial year to 30 June, against a JPY 2.52bn loss the year before.

It is forecasting an annual loss of JPY 13bn.

At the time of the filing, Daiichi owned 95 ships, nearly all bulkers, ranging from 14,000 dwt to 208,000 dwt. Four bulkers were on order in Japan for delivery in 2015 and 2016.