Bankrupt Japanese chemical tanker owner operator Dorval Shipping hasbeen offered a lifeline from Chinese petrochemical trader Sinochem.
According to Japanese financial reports, under a plan tabled this week Sinochem will take a majority 51% shareholding in a new joint venture company to be named Dorval Sinochem Tankers.
Dorval will hold the remaining 49% stake. The deal includes Dorval’s in-house shipmanagement company.
Dorval applied for court protection in December last year after collapsing with some JPY 15bn ($192m) in debt. Its failure was blamed on overinvestment in new tonnage amid a moribund chemical tanker market, rising fuel costs and an appreciating domestic currency.
It has been attempting to rebuild its business under the Tokyo district court. The new planned joint venture remains subject to the court and creditor approval. A creditors meeting is due to be held in Tokyo next week.
Dorval was building four 19,800-dwt newbuildings at the Fukuoka and Usuki shipyards in Japan for delivery in 2011 and 2012. However it is understood the company has disposed of all its assets as part of the administration process and that the new joint venture will act initially as a pure operator rather than tanker owner.
The move will give Shanghai listed Sinochem the chance to expand in the chemical logistics business through Dorval’s expertise in the Asian Pacific market.
The Dorval Sinochem Tanker board will have two representatives from Sinochem and three from Dorval. The company will be headed by Dorval’s current president Tomohiro Yanagi.
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It's a good thing that they applied for court protection before the creditors took the ship away. If they hadn't, the chemical tanker might've been left rusting in the shipyard. I couldn't question the decision of the owner of Dorval Shipping to turn it over to Sinochem. It is hard to pay the $192M debt simply because of the fact that making the ship operational may cost them millions of dollars.
ReplyDeleteDallas Willis