Tue 11 Nov 2008 09:39

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."


Marius Kairys, CEO of Elenger Sp. z o.o. Elenger enters Polish LNG bunkering market with ferry refuelling operation  

Baltic energy firm completes maiden truck-to-ship LNG delivery in Gdansk.

Samsung Heavy Industries (SHI) virtual reality (VR) training program developed in collaboration with Evergreen. SHI develops VR training solutions for Evergreen's methanol-fuelled ships  

Shipbuilder creates virtual reality program for 16,500 TEU boxship operations.

Illustratic image of Itochu's newbuild ammonia bunkering vessel, scheduled for delivery in September 2027. Itochu orders 5,000 cbm ammonia bunker vessel  

Japanese firm targets Singapore demonstration after October 2027, with Zeta Bunkering lined up to perform deliveries.

Bunkering of the Glovis Selene car carrier. Shell completes first LNG bunkering operation with Hyundai Glovis in Singapore  

Energy major supplies fuel to South Korean logistics firm's dual-fuel vessel.

Orient Overseas Container Line (OOCL) vessel. CPN delivers first B30 marine gasoil to OOCL in Hong Kong  

Chimbusco Pan Nation claims to be first in region to supply all grades of ISCC-EU certified marine biofuel.

The Buffalo 404 barge, owned by Buffalo Marine Service Inc., performing a bunker delivery. TFG Marine installs first ISO-certified mass flow meter on US Gulf bunker barge  

Installation marks expansion of company's digitalisation programme across global fleet.

Sogestran's fuel supply vessel, the Anatife, at the port of Belle-Île-en-Mer. Sogestran's HVO-powered tanker achieves 78% CO2 reduction on French island fuel runs  

Small tanker Anatife saves fuel while supplying Belle-Île and Île d'Yeu.

Crowley 1,400 TEU LNG-powered containership, Tiscapa. Crowley deploys LNG-powered boxship Tiscapa for Caribbean and Central American routes  

Vessel is the third in company's Avance Class fleet to enter service.

The inland LNG bunker vessel LNG London. LNG London completes 1,000 bunkering operations in Rotterdam and Antwerp  

Delivery vessel reaches milestone after five years of operations across ARA hub.

The M.V. COSCO Shipping Yangpu, China's first methanol dual-fuel containership. COSCO vessel completes maiden green methanol bunkering at Yangpu  

China's first methanol dual-fuel containership refuels with green methanol derived from urban waste.


↑  Back to Top


 Recommended