Box Ships Inc (TEUFF)

[ivfk]

Put yourself in the shoes of the banks that carry all the bad loans in the Greek shipping industry. Over 400 Billion dollars of bad shipping loans are on the book of the banks. Many of these loans were funded in 2006 when ships rented out for 100,000 a day and the value of a contracted vessels were in excess of 100 Million. Today these same ships are scrapped for 6.5 Million even though they still have another 10 years of life. These banks are in just as deep of a mess than the shipping companies. They have to work together to get through this low. I think it is in the best interest of all parties to hunker down and wait out this storm. It makes no sense for banks to force these companies into bankruptcy. Banks will have to forgive some of the debt and it probably makes sense that the shipping companies scrap some of the non performing ships to lower supply which eventually will raise prices.