Sunday, July 26, 2009

D'Amato di Navigazione files for.....?

They deny filing for bankruptcy, but maybe it's something like protection from creditors. Appears there might be a new law in Italy, and no one knows how it really works.

From Tradewinds

D'Amato di Navigazione has filed for court protection but rejects that it is in bankruptcy or insolvency.

The Italian bulker and tanker owner filed for a "new procedure provided by Italian law" in the Court of Naples, a spokeswoman told TradeWinds Friday.

"This procedure has nothing to do with bankruptcy but it is a guarantee for the creditors, who will be satisfied thanks to the business continuity and the conduct of regular operations in the manner and within the terms agreed," the spokeswoman said.

I don't know. Bunker suppliers are getting skittish about giving credit to vessel operators, banks are getting nervous, everyone is tightening up their credit requirements, and this could certainly put a squeeze on a vessel owner/operator.

International shipping companies generate a huge cash flow. In fact, some companies have been known just to make money on the "float", not on operations. If the credit tightens up, it's going to be tough.

click here for link to article

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