Wednesday, April 23, 2014

Genco Shipping files bankruptcy

Genco Shipping & Trading, dry-bulk cargo ship operator, filed for bankruptcy as weak charter rates made it hard for the company to pay its debtors.

Like the rest of the shipping industry, Genco has been suffering from the industry's vessel overcapacity that has been driving down rates and increasing debt, according to Erik Nikolai Stavseth, an analyst at Arctic Securities ASA.

"They were all victims of the exuberance we saw in the shipping market in the mid- to late-2000s," Stavseth said in an interview before the bankruptcy filing. "High leverage on expensive assets is what killed them."

Genco, which owns or operates vessels that transport iron ore, coal, grain, steel and other products worldwide, listed assets of $2.4 billion and debt of $1.5 billion in a Chapter 11 filing today in U.S. Bankruptcy Court in Manhattan.

For more of the Bloomberg story: bloomberg.com


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