South Korean general cargo ship operator Sundo Shipping has filed for receivership.
The company made the application to Seoul Central District Court on 25 August, and to secure an injunction to deter creditors from seizing its assets.
Sundo obtained a licence from Korean authorities to run an international shipping business but said it has been making losses since the 2008 global financial crisis.
The company said it has KRW13.6 billion (USD11.6 million) of debt while its assets are worth KRW12.3 billion. The situation made receivership unavoidable, said Sundo.
For 2014 Sundo had a net loss of KRW400 million and an operating loss of KRW600 million.
Sundo announced, “Other companies are facing a similar situation but the current market is extremely difficult. Due to the uncertainty, we finally decided to seek rehabilitation.”
IHS Maritime’s Sea-Web.com shows Sundo Shipping was established in 2000 and has just two ships after scrapping one in 2015.
Sundo now owns 1996-built Brother Sky and 1991-built Morning Sky.
Sundo is the third Korean shipping company to seek receivership in 2015, after Daebo International Shipping and Samsun Logix.