is this *the* DRY boat? BAD NEWS

Record drop sparks fears for dry bulk owners

Record drop sparks fears for dry bulk owners
Jamie Dale - Thursday 30 October 2008

DRY bulk owners could find themselves in breach of their loan conditions and some may face bankruptcy after a record drop in secondhand values.

The issue of falling asset values that are linked to loans is now a big problem according to brokers.

“As long as secondhand vessel prices continue to fall, which seems likely in the short-term, and equity prices fall or at the very least remain at current levels, our industry has a serious problem,” Imarex frieght options broker Jeffrey Landsberg told Lloyd’s List.

“As the weeks and months progress, I expect more companies will have problems paying back their loans.”

In the last 12 days there has been on average one bankruptcy every three days, which is “just the start”, according to Tufton Oceanic research director Andreas Vergottis.
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