Greek Shipping Company Gets Hit With Defaulted Junk Bonds

Thursday, August 09, 2001
A Greek-owned shipping company said on Thursday it would seek damages from holders of its defaulted junk bonds who last week "arrested" one of the company's ships as security for a $175 million repayment claim.

The 25,900 gt Ocelotmax has been held in the port of Pusan, Korea since August 4, and is unable to trade until released.

Enterprises Shipholding defaulted on the bond's $7.76 million semi-annual interest coupon in July. "Due to this wrongful attachment (arrest), the company has immediately experienced a loss of hire of thousands of dollars per day and exposed itself to... massive claims by cargo interests," said an Enterprises statement on Wednesday.

"The company intends to seek compensation for all damages arising out of the attachment," it added. The bondholders said on Tuesday they had arrested the ship to secure the "unquestionable right to judgement and payment of their claims against Enterprises".

Talks broke down between the two parties in recent months after Enterprises refused to recognize the bondholders' financial advisor.

The bondholders are largely U.S.-based investment funds, while Enterprises Shipholding is controlled by Greek shipping entrepreneur Victor Restis and is incorporated in Liberia.

The Enterprises statement also said it would be seeking damages from bondholders' alleged attempts in a press release to link Enterprises Shipholding to the Restis family as a whole.

The Restis family are key players on the Greek shipping scene. A Restis-controlled company successfully bought out the bulk-shipping interests of South Africa's Safmarine in April 1999.

In the same year, a Restis-backed alliance failed in a bid to take control of leading tanker player Golden Ocean, which had also defaulted on a junk bond coupon.

The shipping industry tapped the U.S. junk bond markets extensively between 1997 and 1999. Since then, many shipowners have defaulted on their bonds, and much of the debt has been bought back having traded down to less than half its original value.

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter July 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Asia Dry Bulk-Capesize Steady as Owners Spurn Low Rates

Owners anchoring ships rather than fix at low rates. W. Australia-China capesize rates hit over two-month low. Freight rates for large capesize dry cargo ships

Scorpio Bulkers books Net Loss

USA-Monaco based bulk carrier Scorpio Bulkers has reported a loss of $24.7 million in its second quarter of 2016, pushing the carrier's deficit up to $ 83 million.

Diana Containerships in Red, Suspends Dividend

Greece-based Diana Containerships Inc. has reported a second-quarter loss of $8 million, after reporting a profit in the same period a year earlier.   The shipping

 
 
Maritime Careers / Shipboard Positions Maritime Security Naval Architecture Navigation Offshore Oil Pipelines Port Authority Salvage Ship Electronics Ship Repair
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0915 sec (11 req/sec)