London-listed Goldenport Holdings has suspended the servicing of its debt and is in talks to restructure its loan facilities.
The company said that due to poor market conditions in both of the sectors it operators in, dry bulk and containers, the company can only generate enough cash flow to cover the operating expenses of its fleet.
Goldenport said it is in ongoing negotiations with its lenders regarding its situation, and while it has all of its vessels operating except for a single supramax, many of the charters are expiring in the first quarter of 2016.
In December, the company sold three containerships to Dragnis-controlled Goldenport Containerships in an effort to reduce outstanding debt. In total Goldenport planned to sell seven vessels to Dragnis family companies at a total of $52.5m.