Global Maritime Investments (GMI) has filed for Chapter 11 bankruptcy protection in New York to facilitate an orderly liquidation.
As of its filing on 15 September, GMI owed more than USD169 million in debt principal. The company lost USD67.6 million in fiscal year 2015, following shortfalls of USD47.8 million in 2014, USD7 million in 2013, and USD93 million in 2012.
The dry bulk operator has three elements to its business: forward freight agreements, sub-chartering of chartered-in tonnage, and pool management.
GMI has 15 bulkers chartered-in, down from an operating fleet of more than 60 vessels in 2011-12. Its Panamax pool, which was launched in June, is not a party to the bankruptcy proceedings.
Although GMI conducted restructurings in June 2013 and November 2014, its bankruptcy affidavit notes that the dry bulk shipping market “has been especially hard hit by the economic downturn” and “the debtors’ business has continued to suffer losses”.
“Under the pressure of extremely low charter rates, the debtors have faced difficulty in servicing their debt and funding operating expenses,” said the affidavit.
New York Chapter 11 filings for five GMI-affiliated entities incorporated in Cyprus, Singapore, and the US are meant “to wind down operations and liquidate assets in an orderly fashion”, according to the statement.
GMI’s chartered-in fleet consists of the Cape Century, Cape Northville, Cape Providence, Cape Spencer, Dong A Artemis, Sunrise, Ecostar Go, EMS, GMI Athinoula, GMI Jane, Infinity, Istria, Jia Da, Jia Foison, and Primrose.
This post was sourced from IHS Maritime 360: View the original article here.
