An eight ship sell-off and a prospective de-listing from the London Stock Exchange prompts a 72.6% plunge in share price to 1.37p at beleaguered shipping company Goldenport Holdings (GPRT).
Since disclosing in March that debt outstanding under its loan facilities was higher than the valuations of its vessels, Goldenport had been in talks with lenders in attempt to restructure the debt.
These talks have, however, proved fruitless, with the lenders expressing a preference for selling six out of the eight vessels for 'a token consideration to entities controlled by the Dragnis family' and selling the remaining two vessels on the open market in full and final settlement of the related loan facilities.
In addition, Goldenport said it will de-list its shares from the London Stock Exchange in a bid to cut administrative costs and focus on the disposal of its assets.
As the company has previously reported, prevailing market conditions are probably the worst of the last 30 years with the Baltic Dry Index dropping to historic lows, and average daily hire rates falling below even a vessel's daily operating expenses.
The dry bulk and containership shipping markets have become increasingly challenging with increasing idle capacity, weakening vessel charter rates and receding asset values.
Its shares will be cancelled at the end of play on May 23.