Administrators called in to Britannia Bulk

Jamie Dale - Monday 3 November 2008

ADMINISTRATORS were called in on Friday to deal with Britannia Bulk Plc, which went into administration under the Insolvency Act 1986 of England and Wales.
 
Lloyd’s List understands that BDO Stoy Hayward has been appointed administrator for Britannia Bulk. 

In a letter seen by Lloyd’s List, BDO Stoy Hayward advised those who had existing contract or charter obligations with Britannia to take “all necessary steps to mitigate any claims arising under your contract or charter with the company”. 

On Friday the New York Stock Exchange said it had agreed that the company be de-listed. The NYSE had already suspended trading of Britannia Bulk Holdings. 

Britannia Bulk reported last week that it faced financial difficulties due to losses made on forward freight agreement contracts, bunker hedging and chartered in tonnage. 

Nordea Bank Denmark and Lloyd’s TSB Group then asked dry bulk operator Britannia Bulk for immediate repayment of $158.7m outstanding on a loan due to a default on the terms. 

Britannia Bulk had previously warned of the high risk of it breaching the terms, as the asset values of the five ships used to secure the loan had plummeted. 

The secondhand cost of capesize vessels has dropped to $68.8m, from an all-time high of $153.8m in July, according to the Baltic Exchange.
Send to Colleague Printer Friendly Format Email the Editor