Nautilus Holdings Ltd, a privately-held containership owner, and several affiliates have sought relief in Chapter 11 to keep their ship leasing business alive, which has been engulfed in $770 million of debt.
The company joins other shippers that have fallen victims to sluggish market conditions and dip of international shipping rates brought about by appearance of larger ships, writes Reuters.
Nautilus said it filed for bankruptcy protection in order to create “a centralized forum for the collective restructuring” of various loan obligations, according to papers filed on June 23 with the U.S. Bankruptcy Court in Manhattan.
As explained by the documents, the business has been faced with “significant pressure as a result of the expiration of several existing long-term charter contracts with rates higher than current charter rates which reflect a depressed market for container vessels. “
The company, working under Synergy Management Services, has 16 container ships in its fleet with capacities of up to 7,000 twenty-foot containers.
The bankruptcy case is pending before the United States Bankruptcy Court for the Southern District of New York .
World Maritime News Staff, June 25, 2014