Global Maritime Files for Bankruptcy
Dry-bulk shipper Global Maritime Investments Cyprus Ltd. filed for chapter 11 bankruptcy protection New York Tuesday in order to liquidate its business due to a continued industry downturn, reports WSJ.
The bankruptcy filing of the international shipping company came in New York, where Global Maritime has faced lawsuits. Most of the estimated $169 million in debt the company carries is unsecured, court papers say.
The amount includes losses from 2014 worth $47.8 million and about $67.6 million from 2015 fiscal year.
The company attributed the decision to seek bankruptcy protection as it was unable to pay back its debt since market overcapacity pushed down charter rates hampering the carrier’s ability to secure enough profit.
Global Maritime posted a series of losses in recent years, as it attempted to navigate a downturn in the industry cycle. Losses were $47.8 million in 2014 and about $67.6 million in fiscal year 2015, the company said.
According to Global Maritime, too many ships are chasing too little business, and the resulting volatility in charter hire rates rendered it unable to carry its debt load.
Global Maritime’s fleet that employed 60 vessels in 2012, has been reduced to 15 bulk carriers, the court papers seen by the Wall Street Journal show.