News 07 Jul, 2015

Samsun Logix Corporation - Further Rehabilitation Proceedings

Samsun Logix Corporation has applied to the Korean court to enter into Rehabilitation proceedings, and with thanks to lawyers Kwon & Moon, we quote from their notification below. This is the second time that Samsun Logix has applied for Rehabilitation; the first time was shortly after the global financial crash, in March 2009.

"Korean shipping company Samsun Logix Corporation (“Samsun”) has filed an application for the commencement of rehabilitation proceedings with Seoul Central District Court on 3 Jul 2015. 

The court will shortly issue an interim preservation order which prohibits Samsun from disposing of its assets, making payments for existing debts or borrowing money without court approval.  This means that Samsun cannot pay future hire without court approval.

Further, the court will also issue a comprehensive stay order on judicial proceedings against Samsun.  This means that creditors cannot enforce their claim against Samsun’s assets in Korea.  In case where a foreign court recognizes the order of the Korean court, enforcement against any assets of Samsun in the foreign country will be also prohibited.

The court is expected to decide whether or not to commence rehabilitation proceeding within 2 weeks by previous practice.

It’s not certain whether Korean court renders the decision for the commencement of rehabilitation proceedings against Samsun since it’s their 2nd time for them to resort to court protection, however, as long as it is turned out that Samsun’s going concern value exceeds the liquidation value, the court would render the decision to commence it.  If this is the case, we expect that the deadline for creditors to file a rehabilitation claim is estimated to be in the middle of this August and current creditors should also report their claim in case their claim is not listed correctly in Samsun’s creditors list."

If Members have a fixture with or exposure to Samsun Logix, please contact the Managers for assistance.  For Members who have FD&D cover with the Club, and as with the Rehabilitation of other Korean companies such as Daewoo, STX and KLC, the Club is able to assist Members and pay legal costs associated with lodging claims within the Rehabilitation procedure, subject to the deductible and the exercise of discretion in the usual way.