Dry bulk is likely to see a surge of reorganisation throughout 2016, despite extensive debt renegotiation attempts after the financial crisis of 2009, according to IHS Fairplay.
Throughout previous years, a vast amount of European shipping banks have sold their shipping debt to financial investors.
In prior years ship-owners had dealt with a commercial banker, but may now be dealing with a private equity (PE) representative that purchased the owner’s debt in the second- hand market,
Read: Shipping Outlook ‘Volatile’ in 2016
PE has gained large stakes in areas such as dry bulk, where in the past the relationship was substantially conservative; bankers were the lenders and borrowers were traditional family ship-owners.
Randee Day, Founder of Restructuring Advisor Day and Partners, concluded: “You’re dealing with different people at the table.”
