June 24 - Further to our previous reports, less than two weeks after filing for court receivership in South Korea, STX Pan Ocean Co Ltd filed for protection under U.S. bankruptcy law last Thursday in an effort to protect its assets from creditors.
The company sought protection under Chapter 15 of the U.S. bankruptcy code with the federal bankruptcy court in New York.
Previously, the company had said it needed protection as it faced "a liquidity crunch" that left it unable to obtain sufficient funds to repay its debt.
According to Reuters, during last week's filing court-appointed administrators for STX said it has several long-term contracts that will prove profitable and around which it intends to reorganise.
Chapter 15 is used by non-U.S. companies as a means of blocking creditors that want to file lawsuits or tie up assets in the USA and the filing made by STX seeks recognition of the Korean proceeding as a "foreign main proceeding," and to halt a variety of existing and potential litigation and claims in the USA.