New York Law Journal
“Shipping Companies Find a Safe Harbor in U.S. Bankruptcy Courts”
Among the industries buffeted by the recent economic downturn, international shipping companies have been especially hard hit by the worldwide decline in demand for goods, rising oil prices and an oversupply of ocean going vessels. Searching for a safe port to weather the storm, a number of maritime shippers – including Overseas Shipholding Group, Inc., General Maritime Corporation, and Omega Navigation Enterprises, Inc. – have filed for relief under chapter 11 or chapter 15 of the United States Bankruptcy Code seeking to avail themselves of the benefits and protections that the Bankruptcy Code provides.
Because the multinational scope of many shipping companies necessitates overseas operations and dependence on worldwide vendors, the United States insolvency regime is particularly well-suited to restructure an international shipping company.