From Reuters (click here for complete article)
An unexpectedly sharp drop in dry bulk shipping demand and the subsequent decline in rates charged for shipping services caused "a significant net loss" for the quarter. In addition, the company paid more to retain shipping vessels than it received for chartering them to customers, Britannia said in a release.
The company, which transports goods in and out of the Baltic region, said that there was a "very high risk" of default for its loan facility with Lloyds TSB Bank Plc and Nordea Bank Denmark A/S.
Okay, now get this. They did not OWN all of their vessels. So, they thought the charter market would stay on it's wild ride, paid a huge amount to keep vessels on charter, and then guess what? They couldn't find cargo which would pay enough to offset what they were paying for the charters.
By the way, this company had it's IPO in June of 2008. That's right - just 4 months ago.
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