Daebo Files Chapter 15

South Korean bulker operator Daebo International Shipping has filed for bankruptcy protection in the Southern District of New York, TradeWinds News reported. The Chapter 15 petition follows an application to commence rehabilitation proceedings in the Seoul Central District Court, which was submitted on 11 February 2015. Since then, at least five creditors have filed lawsuits against Daebo and its affiliates in the US, which is why observers say they aren't surprised by today’s revelation. They note it’s not uncommon for debtors to seek Chapter 15 recognition of foreign restructurings, particularly when a petitioner's assets are targets of domestic suits. On Friday a judge in the Eastern District of Louisiana ordered the arrest of the 73,900-dwt bulker Daebo Trader (built 2002) in the wake of a complaint filed by Lark Shipping. Four other creditors have secured attachment orders against the same vessel, which has been at anchor off New Orleans since early February. Read more.
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