| June 24
June 24 Nautilus Holdings Ltd, a
Bermuda-chartered company that leases container ships, has filed
for Chapter 11 bankruptcy protection in New York, becoming the
latest victim of a depressed shipping industry.
The company has about $770 million in debt, according to
papers filed late Monday with the U.S. Bankruptcy Court in
International shipping rates have fallen in recent years as
large new vessels entered service at the same time that a
sluggish global economy was curbing trade.
Nautilus said it had some profitable charter contracts and
believed it was well-positioned to restructure its obligations,
but it filed for bankruptcy protection to bring creditors into a
single forum for negotiations.
The company, with offices in New York and Hong Kong, has a
fleet of 16 container ships with capacities of up to 7,000
twenty-foot containers. It leases ships to companies including
AP Moeller-Maersk A/S, Evergreen Marine Corp Taiwan
Ltd and Yang Ming Marine Transport Corp.
Nautilus joins a list of shipping companies that have filed
for bankruptcy in the United States in recent years, including
Genco Shipping & Trading Ltd, Overseas Shipholding
Group Inc and Excel Maritime Carriers Ltd.
There are signs the downturn in shipping may have run its
Nautilus Chief Restructuring Officer James Mesterharm said
in court papers that industry analysts were forecasting a
rebound in shipping rates in the coming years. Recent
bankruptcies in the sector have differed from a typical
corporate Chapter 11 in that shareholders have received some
recovery rather than losing their entire investment.
Reminiscent Ventures is a major investor in Nautilus and
recently acquired a large equity stake from GE Capital.
Nautilus's chief executive officer is Andreas Papathomas,
according to court documents.
Jay Goffman of law firm Skadden, Arps, Slate, Meagher & Flom
The case is In Re: Nautilus Holdings Ltd, U.S. Bankruptcy
Court, Southern District of New York, No. 14-22885.
(Reporting by Tom Hals in Wilmington, Delaware; Editing by Lisa