Tue 11 Nov 2008, 09:39 GMT

Legal firm files lawsuit against Britannia Bulk


Lawsuit alleges misstatements relating to bunker fuel hedges were made.



US legal firm Shalov Stone Bonner & Rocco LLP has filed a securities class action lawsuit against Britannia Bulk Holdings Inc. on behalf of purchasers of the company's common stock issued in its initial public offering.

The complaint names as defendants the company and certain of its executives, underwriters, and directors.

The lawsuit alleges, among other things, that the company made material misstatements or omissions in its prospectus and registration statement for its initial public offering filed with theSecurities and Exchange Commission.

The alleged misstatements and omissions relate to the company's use of "chartered-in capacity," forward freight agreements, and naked bunker fuel hedges. The lawsuit is pending in the United States District Court for the Southern District of New York.

News of the lawsuit follows the decision made last month by the New York Stock Exchange to suspend the trading of shares in Britannia Bulk. NYSE Regulation Inc. said the security was no longer suitable for trading in light of the company’s news announcements on October 28 and 29, 2008.

London-based Britannia Bulk Holdings, an international provider of dry bulk shipping and maritime logistics services with a focus on transporting dry bulk commodities in and out of the Baltic region, revealed that Lloyd's TSB and Nordea Bank Denmark had provided notice of acceleration and demanded immediate repayment of $158.7 million outstanding on a loan due to a default on the terms.

The company said it expected to announce a significant net loss for the three months ended September 30, 2008, which will have resulted partly from a bunker fuel hedge operation which is currently uncompetitive following the recent fall in bunker prices.

Referring to the bunker hedge, Britannia Bulk said "In the three months ended September 30, 2008, the company entered into a bunker fuel hedge which is currently uncompetitive because it is hedged to prices which are significantly above the current market price of bunker fuel. As a result, the company currently estimates that its aggregate bunker fuel hedging losses for the three months ended September 30, 2008 will be significant."


CPN as China's No. 1 marine biofuel supplier in 2025 graphic. Chimbusco Pan Nation delivers 170,000 tonnes of marine biofuel in China in 2025  

Supplier says volumes quadrupled year on year, with a 6,300-tonne B24 operation completed during the period.

V.Group and Njord logo side by side. V.Group acquires Njord to expand decarbonisation services for shipowners  

Maritime services provider buys Maersk Tankers-founded green technology business to offer integrated fuel-efficiency solutions.

Container vessel manoeuvring in port. Has Zhoushan just become the world's third-largest bunker port?  

With 2025 sales of 8.03m tonnes for the Chinese port, Q4 data for Antwerp-Bruges will decide which location takes third place.

Monjasa Oil & Shipping Trainee (MOST) trainees. Monjasa opens applications for global trainee programme  

Marine fuel supplier seeks candidates for MOST scheme spanning offices from Singapore to New York.

Singapore's first fully electric harbour tug. Singapore's first fully electric tug completes commissioning ahead of April deployment  

PaxOcean and ABB’s 50-tonne bollard-pull vessel represents an early step in harbour craft electrification.

Fuel for thought: Hydrogen report cover. Lloyd's Register report examines hydrogen's potential and challenges for decarbonisation  

Classification society highlights fuel's promise alongside safety, infrastructure, and cost barriers limiting maritime adoption.

Bureau Veritas and Straits Bio-LNG sign MoU. BV Malaysia partners with Straits Bio-LNG on sustainable biomethane certification  

MoU aims to establish ISCC EU-certified biomethane production and liquefaction facility in strategic alliance.

Molgas Energy logo. Molgas becomes non-clearing member at European Energy Exchange  

Spanish energy company joins EEX as it expands European operations and strengthens shipper role.

Yiannis Diamandopoulos, Elinoil. Diamandopoulos appointed CEO of Elinoil as Aligizakis becomes chairman  

Greek marine lube supplier announces leadership changes following board meeting on 5 January.

Sustainable Marine Fuel Services webinar hosted by BV graphic. Bureau Veritas to host webinar on sustainable marine fuel transition challenges  

Classification society to address regulatory compliance, market trends, and investment strategies in February online event.





 Recommended