Following the news on Friday that Naples-based Giuseppe Bottiglieri Shipping Company had filed for bankruptcy protection under Italian law, the chairman and CEO Giuseppe Bottiglieri explained that the decision was made “due to local accounting laws since the company is in negative equity. We had two options: inject more equity or approach the courts for a solution”.
The company’s overall financial exposure exceeds $350m and in 2015 the company had already reached an agreement for debt restructuring with the banks most exposed: HypoVereinsbank (Unicredit group), MPS and BNL (Bnp Paribas group).
With the latest move to seek bankruptcy protection, the company now has two to six months to present a new recovery plan.
Giuseppe Bottiglieri has already anticipated that “in the next restructuring plan the four tankers in the fleet are likely to be sold”. Following the tanker disposals, the company will be left with 10 post-panamax and one capesize bulk carrier, all built between 2009 and 2011.