Black Fish

Genco Will Dock Into A Restructuring Leaving Shareholders With Close To $0

(Editors' Note: This article covers a stock trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.)


Overview:

Genco Shipping has run out of time and will go bankrupt. The net asset value of the company is -$13 per share, and this includes selling off its public equity stakes in Baltic Shipping and Jinhui, two public shipping companies that Genco owns shares in. Severe overbuilding in bulk shipping has led to an oversupply of ships. On the demand size, the company has heavy exposure to Chinese imports, as China is now the largest Steel importer and second largest coal importer in the...

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