Japanese ocean carrier Kawasaki Kisen Kaisha, Ltd. or “K” Line has refuted allegations of potential bankruptcy and is mulling legal steps against the instigators of these claims.
“It has become known to us that a certain NVOCC company had circulated false e-mails stating a potential bankruptcy of ‘K’ Line to their customers. The message contained in the e-mails is unfounded without basis of any financial analysis and what is stated therein is false,” the company said in an official statement released September 23 on its website.
“We have strongly protested to the said company, who has admitted that the statement was false and promised to send to their customers a message to retract such statement. We are also considering (taking) any necessary legal measures that we may have against the concerned parties.”
The shipping firm assured further that “our financial condition is sound,” adding that as of June 30, 2016, its cash and deposits amounted to JPY214,304 million (about US$2,082 million) and its total net asset was JPY330,392 million ($3,210 million), while its equity ratio was 29.1% and liquidity ratio was 154.5%.
It continued that “we maintain the credit rating at the same sound and viable level as other shipping companies.”
“It is evident also from these figures that the messages sent by the said company to its customers are erroneous,” it said.
Reports said the NVOCC company that “K” Line was referring to as responsible for starting the bankruptcy talks was APL Logistics.
The shipping industry has been encountering severe financial hardships in recent times due to weak demand, overcapacity, and low freight rates.
Late last month, heavily indebted Hanjin Shipping, South Korea’s No. 1 container shipping line and the world’s seventh, filed for court receivership to protect its assets from being seized by creditors. With its chances of overcoming its financial troubles considered as very slim, its collapse is being regarded as the biggest box liner bankruptcy in history.
Some pundits are forecasting more carriers to fall into ruin as other shipping lines have been sustaining sizable losses as well.
Photo: kees torn
