Enough is enough

Carel van Lynden, of AKD, looks at ways to avoid the full impact of Chapter 11 proceedings

Prospects for economic recovery in the shipping industry remain poor, with little or no sign of a recovery in the short term. 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.