STX Pan Ocean, a South Korean shipping company, has filed for Chapter 15 bankruptcy protection, according to court records, Bloomberg reports. The company, one of the Top 50 Global Container Fleet Operators, listed both debt and assets of more than $1 billion in documents filed in U.S. Bankruptcy Court in Manhattan. Chapter 15 protects foreign companies from U.S. lawsuits and creditor claims while a company reorganizes abroad. STX Pan is asking the U.S. court to recognize the proceeding pending before Seoul Central District Court, Fifth Bankruptcy Division, as a “foreign main proceeding,” according to court papers. The company filed for court receivership under the Korean Rehabilitation and Bankruptcy Act. STX Pan said dropping shipping rates and volume, coupled with overcapacity, higher chartering fees and rising fuel costs, left it unable to pay its debts. Although bulk ships accounted for the majority of STX Pan’s turnover in 2012, totaling 78 percent, about 14 percent of the company’s turnover came from the container shipping segment.
Posted on: Fri, 28 Jun 2013 08:18:24 +0000
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