Update Eastwind Bankruptcy

Tradewinds reports the details of the Eastwind Bankruptcy, as well as what took place 2 days prior.

... Nordea, Bank of Scotland and DnB NOR took over and sold several Eastwind Maritime ships as the New York owner spiralled toward bankruptcy, court documents show.

The just-filed documents show that two days before Eastwind filed for liquidation in a New York court, the banks declared the company in default and exercised share pledges giving them control of a number of Eastwind subsidiaries.

They sold the ships to two companies set up to buy them, Queensland Shipping and Fingal Shipping.

This was actually good management by the banks. There were companies already set up to buy and manage the ships. They took the ships, moved them into the new company, without (apparently) any disruption to the charterers. If this wasn't accomplished, they might have been subject to arrest, just as one of the remaining Eastwind ships is facing.

In separate development in the Eastwind case, LaMonica is asking Gropper to surrender the 470,000-cbf reefer fish carrier Anapa (built 1991) to its mortgage holder to prevent the cost of an impending arrest in Lagos, Nigeria.

click here for link to article

Ship values decline

The trustee handling the Eastwind Maritime bankruptcy is giving a bank possession of 6 ships for which they held the mortgages. The value of the ships is now less than half of the loan amount.

Tokyo Star Bank is owed $54.7m in mortgages on the chemical tankers and the 28,300-dwt bulker Yamaska (built 1985), but the ships are worth just $22.7m, according to court documents.

This takes care of 6 ships, but there is a bunch more...

Before its bankruptcy filing, Eastwind Maritime owned more than 70 reefers, bulkers, tankers, boxships and other vessels, according to legal records.

click here for complete article from Tradewinds

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.

Chiquita and Eastwind Maritime

Eastwind Maritime, an operator of refrigerated ships that is domiciled in the Marshall Islands, filed for Chapter 7 bankruptcy protection today in the U.S. Bankruptcy Court of the Southern District of New York.

"We are taking appropriate steps to protect Chiquita's interests under these long-term charters," said Waheed Zaman, senior vice president, product supply organization.

"While Chiquita's shipping operations represent only a comparatively small part of Eastwind's business, we have been monitoring developments closely and are working with the other parties involved in the chartering relationships to help assure ongoing and timely service to our customers," Zaman said.

Chiquita Brands International said it does not expect the bankruptcy filing by Eastwind Maritime and its affiliates to adversely affect service to Chiquita's customers and the delivery of its bananas and other fresh fruit products.

It said all of the 12 oceangoing ships that the company sold in 2007 remain under long-term charter to Chiquita, including the four ships sold to Eastwind.

click here for article from Journal of Commerce

Eastwind Maritime files Chapter 7 Bankruptcy

Chapter 7 bankruptcy is liquidation of the company, not reorganization.

Eastwind had a deal with Chiquita

The corporation listed assets and liabilities in the range of $500 million to $1 billion. Related affiliates include Kura Shipping Ltd and Probulk Inc.

Eastwind Maritime entered a deal with Chiquita Brands International Inc (CQB.N) in May, 2007, in which Chiquita sold 12 refrigerated cargo vessels to Eastwind for $227 million, then leased them back. The vessels transported about 70 percent of Chiquita bananas shipped to core markets in Europe and North America.

click here for Reuters article

This, from the Eastwind Maritime web-site

Eastwind Maritime Inc. Files Chapter 7

Eastwind Maritime Inc., a Marshall Islands domiciled shipping company, today filed a voluntary Chapter 7 petition for liquidation of the company and most of its subsidiaries in the U.S. Bankruptcy Court of the Southern District of New York. An estate administrator is expected to be appointed by the Court shortly.

Press and Media Contact:

Richard M. Lemanski
Tel: +1 (212) 838-1113
E-mail: rlemanski@eastwindgroup.com

Guess I need to start a list of shipping companies which have been liquidated.