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MPC Container Ships flags bankruptcy risk

Oslo-listed MPC Container Ships has warned it could go bankrupt and will face severe liquidity strains from as early as next month.

In a presentation to bondholders on Friday, the company, one of the fastest growing boxship tonnage providers in recent years, said it will need to sell ships or risk going bankrupt unless it can seal a $200m loan soon.

A liquidity dispute is possible next month, MPC Container Ships stated, which will not only result in breach of the loan terms, but also problems with operations.

Charter rates have slumped by more than a quarter since the start of 2020, while ship values ​​are coming under pressure, the company said, and demo rates are also down 29%.

The presentation stated that the company expects its restructuring to provide a runway for a minimum of 18 months.

MPC has built up a fleet of 68 feeder vessels since it was formed three years ago.

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Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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