Genco Shipping (GNK) has filed for bankruptcy, Bloomberg reports, as weakness in charter rates for its dry-bulk cargo ships made it difficult for the company to pay its creditors; shares have been halted since the open. GNK reportedly listed assets of $2.4B and debt of $1.5B in a Chapter 11 filing.
Something seems wrong, if they have almost 1 billion more assets than liabilities they should be selling assets to pay bills not filing Chapter 11, I believe those numbers are incorrect - even if published in an article.
Shipping is known for overstating asset values of their fleets. But bottom line, it don't matter if you can't make your payments or loan covenants and the banks won't lend you more money or let you refinance. The stronger shippers have lots of distressed situations to look at to find ships at fire sale prices.
roger...I agree with you on this...a lot of companies 'cook the books' on the book value of a company and when the tire hits the street, 'the value is not really there', that is one reason that I never trust book value...! $tagg...!