Malaysia shipowner Swee Joo declares bankruptcy

Malaysia shipowner Swee Joo filed for bankruptcy of Monday as it succumbed to debts of about RM8.5m ($2.8m). Kuala Lumpur-listed Swee Joo announced to the exchange that it has appointed a provisional liquidator on Monday after it made a statutory declaration of insolvency. The company has not been able to secure any agreement to a regularization plan, particularly with one of its major lenders who has rejected the proposed restructuring scheme. Swee Joo's two subsidiaries, namely Johan Shipping and Asia Bulkers, accumulated the debts as they defaulted on loans, credit facilities and interests. “In the circumstances, the company believed that its liabilities far exceed its ability to continue its business and as such in the best interest of the company, under a creditors' voluntary winding up, the board of directors has made the requisite statutory declaration of insolvency,” Swee Joo said in a statement. The companies in the group including Swee Joo which are appointing a provisional liquidator are Johan Shipping, Asia Bulkers, Asia Depot, Masmah, JH Container Services and Shiplink Agency. “The group is no longer in the position to operate and continue to carry on its business,” it added. Swee Joo, through its several subsidiaries, operates container vessels, general cargo ships, support vessels and dual-purpose vessels, plying routes in Southeast Asia.