Friday, June 26, 2009

Why did Eastwind Maritime collapse?

There have been no reasons given for the collapse of Eastwind Maritime

From Reuters

NEW YORK/DETROIT, June 24 (Reuters) - Shipping company Eastwind Maritime Inc said on Wednesday it would liquidate along with most of its affiliates, without giving a reason.

The company and more than 50 affiliates filed for Chapter 7 bankruptcy protection in New York.

However, this comment was posted on my blog

Wonder to what extent the demise of Eastwind is due to excessive and aggressive trading by its PROBULK arm!

My guess: very substantial share of the blame goes to Probulk.

June 25, 2009 1:38 PM

Most likely Probulk got caught up in the craziness of the dry bulk market last year, and had too many bad bets they couldn't cover.

Perhaps the fact that Eastwind Maritime, as well as Probulk, were located at
444 Madison Avenue, New York, New York, contributed to their demise.

Livin' a little too high on the hog.

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