Japanese Shipping Major Dismisses Bankruptcy Rumors

by San Antonio Attorney

Kawasaki Kisen Kaisha, otherwise known as K line, a well renowned Japanese logistics company, has dismissed reports of bankruptcy.

Kiyoshi Tokonami, the general manager of K line, described the rumors as ‘completely groundless’ Tokonami added that K line is only involved in business dialogues, promoting their company platforms with their shareholders.

The rumors started when the media received an emergency notice from a China shipper, stating that K line will eventually follow Hanjin into court receivership within two weeks.  Hanjin is considered to be one of the world’s top ten container carriers, recently applied court receivership last August 2016.

K line has been in the red line in the first quarter and its anticipated full year loss will be worse than its original predicted loss.  The company is bracing for a loss of Y45.5 billion, worse than the anticipated full year loss in April.

For the past years, Japanese shipping companies have been affected by bankruptcies.  Major companies who were affected by financial issues include: Sanko Steamship and Daiichi Chuo.

K line’s fate in court receivership might escape the fate of bankruptcy due to its varied business involvement.

However, there was speculation that Effissimo, a fund management company based in Singapore, was set to take over K line.  Tokonami clarified that there was no takeover and Effisimo’s stake is only for investment.

Effissimo Capital Management was established in Singapore by Yoshiki Murakami.  It holds major stocks in K line and Ricoh, an office equipment manufacturer.  The company is known to have a strategy of targeting Japanese firms on the verge of bankruptcy.

K line was established in 1919 by Kojiro Matsukata.  The company was based on the three initials of people who helped in building the company in its early years.  The company is considered to be one of the world’s largest container transporters.

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