Daehan Shipbuilding Co. Chapter 15 Petition Filed


Korea-based Daehan Shipbuilding Co. filed for Chapter 15 protection with the U.S. Bankruptcy Court in the Southern District of New York, case number 14-12391. The Company, which is engaged in the shipbuilding and repair business, is represented by John Kimball, Thomas Belknap and Michael Schaedle of Blank Rome. According to documents filed with the Court, “Recently, the Company suffered from a serious liquidity crisis due to the economic recession arising from the global financial crisis in 2008. These issues were compounded by the financial difficulties of the Company’s parent company, Dae Ju Construction Industry Co., Ltd., during the same timeframe. As a result, the Company’s credit rating plummeted. This, in turn, resulted in the cancellation of 22 of the Company’s ship building contracts. In addition, the Company suffered major losses due to currency fluctuations following the economic recession. These losses were made worse by the inflation in the personnel expenses and distribution costs for shipbuilding.” On June 27, 2014, the Company applied for rehabilitation under the Debtor Rehabilitation and Bankruptcy Act by filing the Application, and the Korean Bankruptcy Court subsequently issued a commencement order. Daehan Shipbuilding Co.’s Chapter 15 petition indicates assets greater than $100 million.

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