Container Shipper Nautilus Files for Bankruptcy

Posted by Eric Haun
Tuesday, June 24, 2014

Nautilus Holdings Ltd, a Bermuda-chartered company that leases containerships, has filed for Chapter 11 bankruptcy protection in New York, becoming the latest victim of a depressed shipping industry.

The company has about $770 million in debt, according to papers filed late Monday with the U.S. Bankruptcy Court in Manhattan.

International shipping rates have fallen in recent years as large new vessels entered service at the same time that a sluggish global economy was curbing trade.

Nautilus said it had some profitable charter contracts and believed it was well-positioned to restructure its obligations, but it filed for bankruptcy protection to bring creditors into a single forum for negotiations.

The company, with offices in New York and Hong Kong, has a fleet of 16 containerships with capacities of up to 7,000 twenty-foot containers. It leases ships to companies including AP Moeller-Maersk A/S, Evergreen Marine Corp Taiwan Ltd and Yang Ming Marine Transport Corp.

Nautilus joins a list of shipping companies that have filed for bankruptcy in the United States in recent years, including Genco Shipping & Trading Ltd, Overseas Shipholding Group Inc and Excel Maritime Carriers Ltd.

There are signs the downturn in shipping may have run its course.

Nautilus Chief Restructuring Officer James Mesterharm said in court papers that industry analysts were forecasting a rebound in shipping rates in the coming years. Recent bankruptcies in the sector have differed from a typical corporate Chapter 11 in that shareholders have received some recovery rather than losing their entire investment.

Reminiscent Ventures is a major investor in Nautilus and recently acquired a large equity stake from GE Capital. Nautilus's chief executive officer is Andreas Papathomas, according to court documents.

Jay Goffman of law firm Skadden, Arps, Slate, Meagher & Flom represents Nautilus.

The case is In Re: Nautilus Holdings Ltd, U.S. Bankruptcy Court, Southern District of New York, No. 14-22885.

(Reporting by Tom Hals in Wilmington, Delaware; Editing by Lisa Von Ahn)

Maritime Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

TOTE, Saltchuk Secure Financing for Marlin Class Vessels

Maritime Administration to Provide Title XI Loan Guarantee for World’s First LNG Containerships Today, the U.S. Maritime Administration (MARAD) announced a $324.

Transocean: Fleet Update Summary

Transocean Ltd. today issued a monthly fleet update summary which includes new contracts, changes to existing contracts, and changes in estimated planned out-of-service

Barczak Joins Alan C. McClure Associates

Naval architecture and engineering firm Alan C. McClure Associates (ACMA) announced today that Registered Professional Engineer Nicholas Barczakhas joined the ACMA team as a naval architect.

Finance

TOTE, Saltchuk Secure Financing for Marlin Class Vessels

Maritime Administration to Provide Title XI Loan Guarantee for World’s First LNG Containerships Today, the U.S. Maritime Administration (MARAD) announced a $324.

Transocean: Fleet Update Summary

Transocean Ltd. today issued a monthly fleet update summary which includes new contracts, changes to existing contracts, and changes in estimated planned out-of-service

NOAA Orders Newbuild Navigation Response Boats

NOAA today announced that Lake Assault Boats of Superior, Wisconsin, will build two small vessels for the Office of Coast Survey's navigation response program,

Container Ships

TOTE, Saltchuk Secure Financing for Marlin Class Vessels

Maritime Administration to Provide Title XI Loan Guarantee for World’s First LNG Containerships Today, the U.S. Maritime Administration (MARAD) announced a $324.

TOTE Receives $324.6m Title XI Loan Guarantee

New vessels will create jobs, increase amount of cargo moved between Florida and Puerto Rico U.S. Transportation Secretary Anthony Foxx today announced the approval of a $324.

Specialised Reefer Container Operators can Thrive: DMR

Despite growing competition from container lines, specialised reefer operators can still thrive, according to Drewry’s latest Reefer Shipping Market Annual Review & Forecast,

News

TOTE, Saltchuk Secure Financing for Marlin Class Vessels

Maritime Administration to Provide Title XI Loan Guarantee for World’s First LNG Containerships Today, the U.S. Maritime Administration (MARAD) announced a $324.

Transocean: Fleet Update Summary

Transocean Ltd. today issued a monthly fleet update summary which includes new contracts, changes to existing contracts, and changes in estimated planned out-of-service

Navantia Orders Sedni IAS for PEMEX Flotel

Sedni secures an important contract with Navantia to supply its Automation System (IAS) Diamar for the flotel vessel (BAP) which is being built at Ferrol factory for PEMEX owner.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Pod Propulsion Port Authority Salvage Ship Electronics Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1544 sec (6 req/sec)