Hudson Shipping Company became bankrupt due to sanctions

On May 25, the arbitration of Primorye began considering the report of the interim manager in the case of the Hudson Shipping Company (No. A51-13573/2020), and on June 1 declared the organization insolvent. The initiator of the bankruptcy was previously the company "Garant-Bunker". The reason for the financial hole in which the Primorsky shipping company found itself, experts call sanctions from the United States.

The company was sanctioned by the North American states in August 2018. The reason for inclusion in the sanctions list was the accusation of partnership with the DPRK. Hudson, according to the US Treasury Department, was engaged in the supply of refined petroleum products. And he did it on the high seas, pumping energy resources from his tankers to North Korean vessels.

Despite the fact that the company's management continued to deny its participation in trade with the DPRK, the sanctions hurt the financial well-being of the company.

The money quickly began to run out and there was a problem with payments to their own staff.

Hudson had salary debts to the crews of three ships. As a result, in the fall of 2020, a criminal case was initiated (under part 2 of Article 145.1) in relation to the teams of "Bogatyr", "Diana" and "Sevastopol". Moreover, the ship "Sevastopol" had already been sold by this time to try to find money to pay the debt.

The Far Eastern Transport Prosecutor's Office decided that it was necessary to restore the violated rights of Hudson employees. The CEO received two warnings, the company received seven submissions. All of them were eventually satisfied. And the firm continued to receive fines. As a result, out of 14.8 million rubles of salary arrears, the sailors received only 6.7 million. The indictment against the head of the company was sent to court.

Fesco Service and Garant-Bunker presented claims to Hudson for 8.4 million rubles. Now the Hudson Company has entered bankruptcy proceedings. This means that the company's assets will be sold off in order to cover the existing debt to creditors.