Ships being seized by banks to recover debts by shipping owners
City Desk
Unheard of until now but large cargo ships are being seized by banks to recover debts from shipping companies, caused by the near collapse of dry bulk ships rates around the world.
The FT reports that Navios a Greek American shipping company had purchased four new Capesize dry build ships that had been repossessed by the lenders to cover the original debts while the vessels were being built in South Korea.
Tim Coffin of London based M2M Management is quoted in The FT as saying:
"Banks are increasing pressure and there only one way it can go. Foreclosures are inevitable".
The act of foreclosure by banks has allowed cash rich shipping companies to seize vessels at highly competitive rates and build their fleets for an upturn in the market.
Toyota's president apologized profusely Tuesday, as he announced the global recall of more than 400,000 of the automaker's 2010 hybrid models, including the popular Prius, for problems in their anti-lock braking systems.
