Britannia share trading suspended

Jamie Dale - Thursday 30 October 2008

THE New York Stock Exchange today said it had suspended trading of Britannia Bulk Holdings shares as it was no longer suitable after the US-listed company was asked for immediate repayment of $158.7m outstanding on a loan due to a default on the terms. 

NYSE Regulation said it had also considered the “abnormally low” trading level of the common stock, which closed at $0.27 on October 28, with a resultant market capitalisation of approximately of $5m.
Britannia Bulk said it is not contesting the pending delisting. 

On Wednesday Britannia Bulk said that Nordea Bank Denmark and Lloyd’s TSB Group had asked for immediate repayment of $158.7m outstanding on a $170m loan facility. 

The London-based dry bulk operator warned investors on Tuesday that it faced a high risk of breaching the terms as the asset values of the five ships used to secure the loan had plummeted. 

The secondhand cost of capesize carriers has dropped to $68.8m, from an all-time high of $153.8m in July, according to the Baltic Exchange.
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