Tag: shipping market

A second major Chinese shipping firm has halted payments to foreign ship owners Oil tanker company General Maritime Corp filed for bankruptcy protection and Denmark's Torm said it was in talks with creditors on Thursday as both fell victim to a glut of ships in the world fleet and gathering global economic gloom.Bankers expect more bankruptcies and restructuring in the sector as companies struggle with a worsening world economic crisis and lower earnings driven by a build-up of ships ordered when times were good.In a related sign of sector stress, a second major Chinese shipping firm has halted payments to foreign ship owners because of the downturn in the freight market.General Maritime, a leading crude oil tanker company, elected to file for Chapter 11 bankruptcy with a New York court as part of a restructuring agreement that includes a $175 million equity investment from Oaktree Capital management and extensions on debt repayments."Our operations are strong, but continued macroeconomic weakness and reduced tanker rates have diminished our cash flow and our ability to comply with certain covenants...," Chief Financial Officer Jeffrey Pribor said in a statement.Earlier this month, China's transportation minister said the global shipping sector was in a downturn worse ...