Global Maritime Investments Cyprus filed for chapter 11 bankruptcy protection in New York on Tuesday and is to liquidate its business, reports say.
The privately owned dry bulk shipping company has estimated unsecured debt of around $169m, according to court papers seen by Bloomberg.
London-based Global Maritime’s losses were $47.8m in 2014 and about $67.6m in fiscal year 2015, the company said in an affadavit, due to fleet overcapacity and rate volatility in dry bulk shipping markets. The losses have left the company unable to service its debt.
Global Maritime has a fleet of 15 vessels, according to the court filing. The company was beneficial owner of two kamsarmax vessels (GMI Athinoula and GMI Jane), both of which operated in the 13-vessel GMI Panamax Pool, which was launched by the company in April this year. The other vessels in the pool were timechartered in by the company.
According to VesselsValue.com, Global Maritime also had four panamax bulkers on order at China’s Jiangsu New Yangzijiang shipyard. Two vessels were scheduled to arrive this year and another two next year.
The GMI Panamax Pool was launched “to add real value to client owners’ earnings in a depressed market and to prepare these clients for an eventual recovery in the dry bulk market”, GMI’s co-founder Stuart Rae remarked in a statement released in June.
The Pool had aimed to reach 30 vessels by the end of this year and a further 30 in 2016.