Sewol Ferry Major Shareholder Lodges Receivership Application

Posted by George Backwell
Monday, June 23, 2014
Sewal capsized: Photo Korea CG

The major shareholder of the South Korean operator of the ferry on which hundreds of high school students drowned in April has applied for receivership, a court said on Monday.

Chonhaiji Co Ltd, a ship block maker and the major shareholder of ferry operator Chonghaejin Marine Company, lodged its application at the Changwon District Court last week, a court official said.

Chonghaejin Marine owned the Sewol, which sank on April 16 on a routine journey between the mainland port of Incheon and the holiday island of Jeju. Of 476 passengers and crew on board, including 339 students and teachers from the same school, 172 were rescued with the remainder presumed drowned.

Chonhaiji had 34.8 billion won ($34.19 million) in outstanding debt to main creditor Korea Development Bank as of last week, the bank's spokesman said.

The company, which owned 39.4 percent of the ferry operator as of end-2013, reported a net profit of 1.01 billion won last year. But it missed some debt repayments due last month as its business suffered in the aftermath of the disaster.

The court has not yet decided whether to grant the company protection from debtors or to order its liquidation, the official said on condition of anonymity to avoid being associated with the ferry accident.

Chonhaiji is one of the companies that were controlled by the sons of an elderly businessman, Yoo Byung-un, who is the co-founder of the church which owns the website www.god.com, and has evaded South Korea's most intense manhunt for a month.

Yoo and his sons, also having evaded capture, are wanted for charges ranging from embezzlement and negligence to tax evasion.

(By Joyce Lee)

Maritime Reporter July 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Odfjell Drilling in Tighter 2Q North Sea Market

Odfjell Drilling reports second quarter 2014 financial results showing a profit of US$29-million. Profit & loss Q2 2014 Operating revenue for Q2 2014 was USD 272 million (USD 289 million),

Brazil AHTS Contract Breakthrough for Havyard

Havyard says it is to deliver the ship design and equipment for four anchor handling tug supply (AHTS) vessels that are to be built and operated by the Brazilian

Darwin, Australia Scene of KAKADU Exercise Planning

Over 1,200 military personnel from the Asia Pacific and Indian Ocean regions have completed collaborative, tactical warfare planning during the first week of the

Legal

Iraq to Appeal US Court Decision on Kurdish Oil

The Iraqi oil ministry said on Thursday it would challenge a U.S. court decision that stopped U.S. Marshals from seizing some one million barrels of disputed Kurdish oil docked near Texas.

USCG Shares Safety Tips for Labor Day, Riverfest

Labor Day weekend marks the unofficial end of the boating season and is known as one of the busiest recreational boating weekends on the Ohio River. With approximately 2,

Wishful Thinking From Across the Pond

European Shipowners Pursue Softening of the Jones Act   Just last month, the Secretary General of the European Community Shipowners’ Association (ECSA) opined

Finance

Odfjell Drilling in Tighter 2Q North Sea Market

Odfjell Drilling reports second quarter 2014 financial results showing a profit of US$29-million. Profit & loss Q2 2014 Operating revenue for Q2 2014 was USD 272 million (USD 289 million),

DP World 1H 2014 Profit Soars

Global marine terminal operator DP World releases strong financial results from its global portfolio of marine terminals for the six months to 30 June 2014, delivering

British WWl Warship Refurbishment Project

Northern Ireland Office Minister, Dr Andrew Murrison MP, visited the historic HMS Caroline in Belfast’s Titanic Quarter as restoration grants are received, informs the UK Government.

Casualties

Coast Guard Responds to Capsized Tug in Chicago

The Coast Guard is responding to the capsizing of a tug on the Calumet River near the 106th St. Bridge in Chicago in which two crew members were able to escape and swim to shore.

Crippled Pine Galaxy Arrives in San Francisco

The disabled mixed-products tanker Pine Galaxy arrived in San Francisco for repairs Wednesday. Commercial tugs towed the ship safety into the Port of San Francisco

Tugboat Capsizes Near 106th Bridge, Chicago

The Coast Guard informs it is responding to the capsize of a tug on the Calumet River near the 106th St. Bridge in Chicago, in which the two crew members were able

Ferries

Ferry Runs Aground in Lynn Harbor

Ferry Cetacea ran aground about a quarter of a mile from the pier in Lynn Harbor, Massachusetts yesterday, with 13 passengers and four crew aboard, the U.S. Coast Guard (USCG) reported.

Federal Officials Approve Plans to Replace Mukilteo Terminal

The 60-year-old Mukilteo Ferry Terminal is one step closer to replacement. On Friday, Aug. 22 the Federal Transit Administration signed a record of decision allowing

New Double-ended Ferry for Norderney

New double-ended ferry serving the North Sea island of Norderney – Safe and eco-friendly maneuvering in shallow, high-sediment water using Voith Schneider Propellers Ferries

 
 
Naval Architecture Navigation Offshore Oil Pod Propulsion Port Authority Ship Electronics Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2034 sec (5 req/sec)