27 / 02 / 2009
ic Nightingale and Rebecca Keenan
Dec. 18 (Bloomberg) — Greek shipping billionaire John Angelicoussis is suing Fortescue Metals Group Ltd. for $130 million as a collapse in vessel-rental rates triggers an increase in industry lawsuits.
Fortescue, Australia’s third-largest iron ore producer, canceled a contract to lease the Angelicoussis-controlled Anangel Splendour, according to a Dec. 11 filing in [...]
Greek Shipping Billionaire Sues Fortescue on Iron Ore
Dec. 18 (Bloomberg) — Greek shipping billionaire John Angelicoussis is suing Fortescue Metals Group Ltd. for $130 million as a collapse in vessel-rental rates triggers an increase in industry lawsuits.
Fortescue, Australia’s third-largest iron ore producer, canceled a contract to lease the Angelicoussis-controlled Anangel Splendour, according to a Dec. 11 filing in U.S. federal court in New York. The East Perth-based company agreed to rent the ship for as long as 61 months at $77,500 a day, the documents show.
The price of hiring vessels commonly used to haul coal and iron ore fell as low as $2,316 on Dec. 2 from a record $233,988 as China’s steelmakers cut output. That bankrupted some owners, made existing shipping accords less attractive and is pushing owners toward breaching agreements with their bankers. Companies that bet rates would continue to advance face derivatives losses.
Atlas Shipping Group, a Copenhagen-based commodity carrier with 41 vessels, today filed for bankruptcy protection in the city, citing the market’s plunge. Odessa, Ukraine-based Industrial Carriers Inc. also filed for bankruptcy in October, while London-based Britannia Bulk Holdings Plc, was placed in administration under U.K. insolvency laws in November.
Fortescue said Dec. 16 it was reviewing the legal status of a decision to suspend cargo deliveries, asking buyers to make their own arrangements instead.
Arbitration in London
“Fortescue took prudent and decisive action to exercise its rights under its shipping contracts,” spokesman Paul Downie said today. “Any disputes are being referred to arbitration in London as per the terms of the contracts.”
Dimitri Stylianou, a director at Angelicoussis Group’s office in London, confirmed the company controls Anangel Splendour and declined to comment further.
Armada (Singapore) Pte is also claiming $2.5 million against Fortescue for canceling a shipment.
The lawsuits bring the total of shipping-related claims filed since Nov. 12 to at least $300 million, with ArcelorMittal, Louis Dreyfus & Cie. SA, and Zodiac Maritime Agencies Ltd. among the companies bringing cases or being sued, according to data compiled by Bloomberg.
The Angelicoussis suit is being brought by Splendour Special Maritime Enterprise. Anangel Maritime Services Inc. signed the rental accord, according to the filing.
The cases are Splendour Special Maritime Enterprise v. Fortescue Metals Group Ltd., 08cv10766, U.S. District Court, Southern District of New York, and Armada (Singapore) Pte v. Fortescue Metals Group Ltd., 08cv10542, U.S. District Court, Southern District of New York.
HellenesOnline | 27 / 02 / 2009 | AEGEAN SEA | Tags: ECONOMY, Europe, Hellas Greece, INTERNATIONAL, shipping, ΕΛΛΗΝΙΚΑ |
An independent movement of free thinking citizens, idealists and ideologues with a shared dream: a better world inspired by Hellenic ideals that gave birth to civilizations: Freedom, Direct Democracy, Justice, Humanity, Reason, and the pursuit of Excellence.
