MPC Steamship, Ahrenkiel Group and Thien & Heyenga to Merge

[Phil English]

German owners have found it particularly tough of late with the collapse of many K.G. funds set up in the boom of 2007-2008 so this kind of consolidation is not unexpected:


http://www.mpc-steamship.com/contell/cms/data/Downloads_Public/mpc-steamship/presse_Ahrenkiel_en.pdf;jsessionid=E1426717693CC671D5DB69E6F0D295E7.n_cms1?

Brgds
Phil

[Captain Ted]

hi phil

one further info,,the KG funds were not just set up in the boom days, it was started already on the early 80,s and was virtually a governmental organized subside for shipping companies which left all bounds and means until it crashed totally. It was all about cheap money for one side and tax write offs on the other side with no regard for the future.

[Allan RO]

Can I assume Phil that although it is April 1st, this is a true story

Allan

[Phil English]

Yes It's true Allan and Ted, many KG funds were set up well before the boom times but that was when the cost of building and purchasing ships was considerably cheaper. The funds were therefore sustainable. Those set up in 2007/2008 were at the top of the market and not sustainable when the crash happened.

Brgds
Phil

[Captain Ted]

hi Phil

sure point,,they were set up with no regard for the future,,money was made by building ships and selling them before they have to run them. Most companies which are now in trouble were suddenly sitting on ships which they never intended to operate.