http://www.bloomberg.com/news/2014-04-21/genco-shipping-files-for-bankruptcy-on-weak-charter-rates.html
The shipping industry has suffered from a glut of vessels
after buying too many before the 2008 global recession, driving
down rates and saddling companies with debt, said Erik Nikolai Stavseth, an Oslo-based 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.
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