Core Tip: Danish operators Copenship and South Korea's Daebo have filed for bankruptcy protection as dry bulk rents have fallen to their lowest point in 30 years.
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Just as he made the above comments, Norton reported 2014 results in line with the dry bulk situation. Although the finished fleet has surrendered the “best answer†since 2008, Norton still ends with a net loss of $416 million, which also includes some impairment losses. Badsted predicts that this year's bulk carrier market will still be difficult. He believes that although the shipbreaking and the increase in the amount of withdrawal can alleviate the pressure of oversupply, "this can't save 2015 in time." But under such "shadow", Norton's own balance sheet is very strong. It has approximately $200 million in cash and $418 million in undrawn credit facilities.
Norton Shipping: More dry bulk companies will be hard to beat bankruptcy
As dry bulk rents fell to their lowest point in 30 years, Danish operators Copenship and South Korea's Daebo have filed for bankruptcy protection. Norton executive vice president Martin Badsted believes that there will be more bankruptcy cases. After reporting the full-year results, Badsted said to TradeWind, "If the industry situation continues to decline as we fear, many players will fall into a quagmire." He predicted, "Given the bankruptcy case has emerged, then It is very likely to increase further." He also admitted that Norton is experiencing increasingly serious counterparty risks.