The New York-listed bulker owner shed light on the surprise development in a filing with the US Securities and Exchange Commission but offered little detail.
“He indicated that his departure reflected a desire to focus on other companies in which Oaktree invests and did not reflect any disagreement with the company,” Genco told regulators Friday.
The company, which is led by shipping mogul Peter Georgiopoulos, said it doesn’t intend to fill the vacancy after deciding to reduce the size of its board to seven directors.
Kaplan had served on Genco’s board since its initial public offering. He first joined its chairman’s inner circle in 2001 after taking directorship with General Maritime Corp (Genmar) and relinquished the seat in 2007 but has been an active industry participant ever since.
It’s unclear if the departure will rattle investors but analysts note that share prices are already fragile and increasingly susceptible to uncertainty surrounding board changes in the wake of a high-profile resignation that preceded the collapse of Overseas Shipholding Group.
“Shipping equities are always volatile but when you are talking about a relatively small group of stocks exposed to a market hit with high-profile bankruptcies, bad freight rates and investors who were left with a bad taste in their mouth after OSG’s [bankruptcy] filing, board changes don’t go unnoticed,” a leading shipping researcher noted.
The same market analyst was quick to point out that Genco did provide some detail about Kaplan’s departure and believes attention will likely turn to questions about whether the Oaktree executive intends to devote time to his firm’s other shipping interests.
Oaktree is based in Los Angeles and specialises in distressed debt. Wall Street sources claim it manages over $80bn and note its portfolio includes investments in Hansa Heavy Lift, Eagle Bulk Shipping and Iremis, formerly Gulmar Offshore, in addition to Genco and Genmar.
The firm made TradeWinds headlines late last year when its private equity arm teamed up with Greek shipowner Petros Pappas and Oceanbulk with a joint venture aimed at acquiring distressed dry-bulk assets. The partnership preceded a liner alliance with the Rickmers Group.
