levin70

Looking Good: Genco in Particular, Shipping in General

Not one comment on the debt covenants at these companies in this article. Very much amateur hour. Did you even read the debt agreements? There is a real reason that the shippers share prices imploded the last two weeks. They have debt covenants that are more than likely in breach due to asset valuations shrinking in the secondary market for ships. If the banks balk and demand their money, no more common equity. Waivers can be had, but at what price?