This isn't the first time, nor likely the last, that I've written about the tough conditions in the shipping industry. A combination of high capacity, high fuel prices and inconsistent emerging market demand, has led to low rates and high operating costs and numerous struggling companies. With the recent bankruptcy of General Maritime (OTCBB: GMRRQ) and the warnings from Frontline (NYSE: FRO) management about its own potential liquidity difficulties, it seems pretty clear that the reckoning has come for many of these companies. (To know more about bankruptcy, read: An Overview Of Corporate Bankruptcy.)
General Maritime Goes Down
General Maritime was not the first, nor will it likely be the last, shipping company to declare bankruptcy, during this downturn. There's not a lot that really needs to be said about this situation; the company had a great deal of
debt, which is true for many shipping companies, and a dismal operating environment, which, again, is true for pretty much all shipping companies.
Follow this link for more:
http://stocks.investopedia.com/stock-analysis/2011/Shipping-A-Big-Mess-GLNG-SFL-DSX-NAT-EXM-DRYS-GLNG-PRGN1130.aspx
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