Uncertainty haunts Genco

Wall Street appears to be growing increasingly concerned about the future of Genco Shipping & Trading (Genco).
Genco is led by chairman Peter Georgiopoulos.

Genco is led by chairman Peter Georgiopoulos.

The US bulker owner’s New York-listed shares plummeted 26% before bottoming out at around $1.19 in the hour leading up to the close.

Nearly 13 million shares had changed hands by 3:00 Thursday afternoon, which is well above a typical daily average of around 1.6 million.

Many believe the sell-off was sparked by growing speculation that a Chapter 11 bankruptcy filing may be imminent.

While uncertainty has haunted the Peter Georgiopoulos-led operator’s stock for some time observers note investors were really spooked this afternoon when the New York Post published an article that suggested a petition might come in less than 24 hours.

A leading market researcher who has been warning clients about the possibility of a Chapter 11 filing for some time says he is not surprised by the sell-off since Friday marks the expiration of a 30-day grace period linked to a lapsed bond interest payment.

In a recent regulatory filing Genco acknowledged that bankruptcy is a possibility but sources with close ties to the bulker owner’s management team have noted they would prefer to clean up its balance sheet on its own terms without the aid of a federal judge.

Genco Ship & Trade
Last+/- %+/-High
  • Genco filing for Chapter 11 could be imminent

    In a week in which Peter Georgiopoulos confirmed a $735m VLCC deal and swooped into the chemicals sector, there was one legacy headache still very much in view.

  • Genco sees red

    US bulker owner Genco Shipping & Trading (Genco) has postponed the filing of its annual report.
  • Genco 'another Torm'?

    New York-listed Genco Shipping & Trading could end up looking like Danish products tanker owner Torm as a result of its restructuring negotiations, a bankruptcy lawyer projected today.
  • The ides of March

    An article published by the New York Post is fuelling growing speculation that Genco Shipping & Trading (Genco) plans to file for bankruptcy in the US.
  • Genco mulls Chapter 11

    Wall Street was reeling Wednesday after learning that Genco Shipping & Trading (Genco) missed a bond payment.