Daewoo Logistics goes under
Daewoo Logistics has declared bankruptcy in a South Korean court, news outlets reported Monday.
The Korean company, a spin-off of the bankrupt Daewoo conglomerate after the Asian financial crisis in 1998, is understood to have maturing debts that it cannot pay due to weak cash flow.
According to a report in Fairplay, the final nail came as a rescue effort by the Korean steel giant Posco fell through. Evidently, other Korean shipping and logistics companies threatened a boycott of Posco if it went ahead with its acquisition of Daewoo.
Daewoo Logistics started as a non-asset company but later diversified into ocean transport, operating a fleet of bulk carriers, car carriers and tankers, the Fairplay report said.