South Korean bulker operator Samsun Logix is seeking bankruptcy protection again, after attempts of voluntary debt restructuring failed.
It is the second time that Samsun Logix has gone to the courts to apply for corporate rehabilitation, after first doing so in March 2009.
The company’s lawyers, Kwon & Moon informed the West of England P&I Club, which duly issued a notice to its members.
The lawyers said Samsun Logix made the application to the Seoul Central District Court on 3 July.
The court has issued an interim injunction to stop Samsun Logix from selling its assets, repaying debts, or taking loans without its permission.
The court will also issue a stay order to prevent creditors from seizing Samsun Logix’s assets.
The lawyers said that the court is expected to decide in two weeks, whether to start rehabilitation proceedings for Samsun Logix.
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The lawyers said, “It’s not certain whether South Korean court renders the decision for the commencement of rehabilitation proceedings against Samsun, since it’s their second time resorting to court protection, however, as long as it turns out that Samsun’s going concern value exceeds the liquidation value, the court would render the decision to commence it. If this is the case, we expect that the deadline for creditors to file a rehabilitation claim is estimated to be in the middle of August 2015, and current creditors should also report their claim in case their claim is not listed correctly in Samsun’s creditors list.”
The West of England P&I Club has said it could assist members who are Samsun Logix’s counterparties to pay legal costs associated with lodging claims within the rehabilitation procedure.