Chapter 11 — Enough Is Enough

Carel J H van Lynden, a partner in the Shipping & Offshore Department at AKD law offices in Rotterdam

Prospects for economic recovery in the shipping industry remain poor, with little or no sign of a recovery in the short term. Even Chinese shipowners are now reported to be making huge losses. The banks are frustrated by a lack of buyers and by the probable outcome of a re-valuation – or, rather, devaluation - of owners' assets. In many cases, they prefer to let their clients remain in business, even if they fail to pay due instalments or interest payments for extended periods of time, never mind that many of those same owners are also in default on the likes of their loan-to-value ratios.