Japanese dry bulk operator Daiichi Chuo Kisen has asked for a meeting with its main business partners as its financial performance worsens as the result of the downturn in the trading market.
Daiichi Chuo Kisen has requested a meeting as early as next week.
Daiichi Chuo Kisen had reportedly been seeking a reduction in charter rates to ease financial pressures on the company.
Daiichi Chuo Kisen was given a major boost when a potentially ruinous court ruling making it financially liable for the 2006 loss of the 176,000-dwt capesize MV Ocean Victory (built 2005) was overturned last month.
Daiichi Chuo Kisen's latest earnings forecast reveals that the financial benefits of the appeal court ruling have already been wiped out by the downturn in the trading market.
Daiichi Chuo Kisen said that in the full fiscal year ending March 2015 it forecasts a 4.5bn ($37.8m) net loss.
Daiichi Chuo Kisen said of its markets: “All ship types are depressed, it will take a long time for a full recovery.”
Daiichi Chuo Kisen has been undergoing a financial restructuring mostly with the financial support of its main shareholder Mitsui OSK Lines. Daiichi Chuo Kisen has been aiming to reduce its fleet and raise cash by selling vessels.