STX Pan Ocean granted preliminary injunction against creditor actions

By Caroline Salls

Pittsburgh, July 1 - STX Pan Ocean Co., Ltd. secured a preliminary injunction prohibiting creditors from filing or continuing any actions against the company or its assets, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, administrators You Sik Kim and Chun Il Yu made a Chapter 15 bankruptcy filing on behalf of STX on June 20 to gain U.S. recognition of STX's proceeding under the Korean Rehabilitation and Bankruptcy Act.

The company said in documents filed with the court that it is experiencing a liquidity crisis as a result of a decrease in cargo transportation, traffic volumes and ocean freight fares stemming from the worldwide recession.

STX said the liquidity crisis also resulted from an excess supply of ships' space, increases in chartering fees and fuel costs and increased debts and due and payable loans for the purchase of new ships.

STX said it applied for rehabilitation to the Seoul Central District Court Fifth Bankruptcy Division on June 7, and the Korean court issued an order beginning the proceedings on June 17.

The case recognition hearing is scheduled for July 10.

STX is a Seoul, Korea-based marine transportation company. The Chapter 15 case number is 13-12046.

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