Countries Push for CO2 Shipping Levy as Crunch Talks Loom
Maritime nations including Denmark and the Marshall Islands are rallying support for a global carbon dioxide emissions levy on shipping, with talks at a critical stage ahead of a U.N. agency meeting next month that could back the measure.The levy could provide funds to help countries cope with climate change and help curb emissions from shipping - a sector that transports about 90% of world trade and accounts for nearly 3% of global CO2 emissions, but whose international nature means it often avoids national CO2-cutting regulations.Member countries of the U.N.
Bank of Ireland Winding Down Shipping Loans
Bank of Ireland said it is winding down its shipping business, joining other banks looking to cut non-core lending and exposure to an industry suffering its worst downturn. Many European banks are already bogged down by a sluggish economy and face tough capital demands from regulators which are eroding profitability, leaving many looking for ways to shore up their balance sheets. Parts of the shipping industry are suffering their deepest ever downturn as international trade slows. Around 90 percent of world trade is transported by sea. "As previously stated, Bank of Ireland no longer lends within the shipping finance sector and we have been winding down the portfolio," the bank, Ireland's largest by assets, told Reuters on Tuesday.
Paragon Shipping Sells Panamax Bulker to Repay Loan
Paragon Shipping Inc. announced that it has entered into an agreement to sell M/V Kind Seas for a cash consideration of $3.5 million to an unaffiliated third party and the delivery of the vessel was concluded on January 8, 2016. The Company has also agreed with Bank of Ireland to apply the total net proceeds from the sale of M/V Kind Seas towards an immediate prepayment of the loan facility. The remaining principal amount of $4.4 million shall be treated as follows: a) $2.2 million shall be written-off subject to certain conditions and b) $2.2 million, plus any accrued interest, was converted into an unsecured paid-in-kind note (“PIK Note”). The PIK Note will be non-amortizing and will have a maturity date of December 31, 2020, at which time it will be repaid at par.
