Wednesday, October 10, 2012

Deiulemar Shipping Bankrupt As Freight Crisis Deepens


Thu., October 11, 2012

Deiulemar Shipping, a major Italian dry freight group, has been declared bankrupt owing more than 500 million euros, an Italian court and the company said on Wednesday, the latest casualty of a worsening freight market crisis. The slump, one of the worst ever faced by the sector, has sunk a number of dry bulk firms including Britain's oldest, Stephenson Clarke Shipping Ltd. "Deiulemar Shipping was declared bankrupt by the court of Torre Annunziata this week," said Astolfo Di Amato, the lawyer representing Deiulemar Shipping. The court, which is near the port city of Naples, said the company was declared bankrupt late on Tuesday with administrators appointed. Deiulemar Shipping, also based near Naples, was founded by the sons of the owners of another shipping company, Deiulemar Compagnia di Navigazione, which has also been declared bankrupt earlier this year owing about 860 million euros ($1.11 billion), mostly to angry bondholders. In July, Italian police seized assets amounting to 323 million euros, which included 10 vessels belonging to Deiulemar Shipping, and arrested nine members of the founding families in connection with the bankruptcy of Deiulemar Compagnia di Navigazione. Soon after, lawyer Di Amato filed a debt restructuring proposal that would have included the liquidation of Deiulemar Shipping and the sale of all its assets to partially satisfy its creditors. Before the proposal could be evaluated though, the court seized two more vessels on Sep. 18, leaving Deiulemar Shipping in control of only four ships. "At that point we started making new calculations to evaluate whether it was possible to come out with a new plan but we thought this was not possible and asked for the company to be declared bankrupt," Di Amato told Reuters. The court-nominated administrators will be managing the company's assets until a potential auction.

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