![Joel R. Glucksman](/_next/image?url=https%3A%2F%2Fres.cloudinary.com%2Fscarinci-hollenbeck%2Fimages%2Ff_auto%2Cq_auto%2Fv1636806492%2Fwp.scarincihollenbeck%2FJoelRGlucksman-Profile-743x795-1%2FJoelRGlucksman-Profile-743x795-1.jpg%3F_i%3DAA&w=256&q=75)
Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comAuthor: Joel R. Glucksman|October 8, 2015
On Sept. 15, Global Maritime Investments Cyprus Ltd., one of the largest privately-owned freight trading groups in the world, announced that it had filed for Chapter 11 bankruptcy protection. The company stated that it intends to liquidate its remaining assets and wind down business operations.
In its bankruptcy filings, the international dry-bulk shipping giant cited that its business had hit a prolonged industry downturn. According to the Wall Street Journal, as the result of plummeting charter rates across the shipping industry, due in part to the global economic crisis and an increase in lower-cost competition, there is an excess supply of vessels and not enough business. This has resulted in recent volatility in charter hire rates, which led Global Maritime into massive debt.
The company stated in court papers that it was unable to recover from its debt load, according to CFO Magazine. Further, a majority of its $169 million in debt is unsecured, which led the company to seek bankruptcy protection.
Company officials claimed that Global Maritime has faced several financial challenges in recent years. After its peak years in 2007 and 2008, Global Maritime became one of the world’s elite dry-bulk shipping companies. However, according to an IHS Maritime 360 report, between 2012 to 2015, the company was hit hard by the industry downturn as it posted net losses of $93 million in 2012, $7 million in 2013, $47.8 million in 2014 and $67.6 million in 2015. The report went on to note that the company’s revenues were at decade lows by 2015. This led to the company fleet of vessels reducing from over 60 in 2012, down to 15 in 2015.
The WSJ explained that the company’s restructuring plan calls for a proposed $2 million debtor-in-possession financing agreement with its primary lender. This influx of capital will support the company through the bankruptcy process, while the protection of the bankruptcy automatic stay safeguards the company’s assets from seizure as it proceeds to wind down all operations for its five affiliated entities in Cyprus, Singapore and the U.S. However, Global Maritime officials also stated in court papers that the company plans to seek additional financing through an out-of-court restructuring with principal creditors.
This marks the third time since 2013 that Global Maritime has filed for Chapter 11 bankruptcy protection. In its previous filings, the company and its principal investors agreed to restructure its debt load by winding down a portion of its operations.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.
Partner
201-896-7095 jglucksman@sh-law.comOn Sept. 15, Global Maritime Investments Cyprus Ltd., one of the largest privately-owned freight trading groups in the world, announced that it had filed for Chapter 11 bankruptcy protection. The company stated that it intends to liquidate its remaining assets and wind down business operations.
In its bankruptcy filings, the international dry-bulk shipping giant cited that its business had hit a prolonged industry downturn. According to the Wall Street Journal, as the result of plummeting charter rates across the shipping industry, due in part to the global economic crisis and an increase in lower-cost competition, there is an excess supply of vessels and not enough business. This has resulted in recent volatility in charter hire rates, which led Global Maritime into massive debt.
The company stated in court papers that it was unable to recover from its debt load, according to CFO Magazine. Further, a majority of its $169 million in debt is unsecured, which led the company to seek bankruptcy protection.
Company officials claimed that Global Maritime has faced several financial challenges in recent years. After its peak years in 2007 and 2008, Global Maritime became one of the world’s elite dry-bulk shipping companies. However, according to an IHS Maritime 360 report, between 2012 to 2015, the company was hit hard by the industry downturn as it posted net losses of $93 million in 2012, $7 million in 2013, $47.8 million in 2014 and $67.6 million in 2015. The report went on to note that the company’s revenues were at decade lows by 2015. This led to the company fleet of vessels reducing from over 60 in 2012, down to 15 in 2015.
The WSJ explained that the company’s restructuring plan calls for a proposed $2 million debtor-in-possession financing agreement with its primary lender. This influx of capital will support the company through the bankruptcy process, while the protection of the bankruptcy automatic stay safeguards the company’s assets from seizure as it proceeds to wind down all operations for its five affiliated entities in Cyprus, Singapore and the U.S. However, Global Maritime officials also stated in court papers that the company plans to seek additional financing through an out-of-court restructuring with principal creditors.
This marks the third time since 2013 that Global Maritime has filed for Chapter 11 bankruptcy protection. In its previous filings, the company and its principal investors agreed to restructure its debt load by winding down a portion of its operations.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.