The US bulker owner’s New York-listedshares plummeted 26% before bottoming out at around $1.19 in the hour leadingup to the close.
Nearly 13 million shares had changedhands by 3:00 Thursday afternoon, which is well above a typical daily averageof around 1.6 million.
Many believe the sell-off was sparked bygrowing speculation that a Chapter 11 bankruptcy filing may be imminent.
While uncertainty has haunted the PeterGeorgiopoulos-led operator’s stock for some time observers note investors werereally spooked this afternoon when the New York Post published an article thatsuggested a petition might come in less than 24 hours.
A leading market researcher who has beenwarning clients about the possibility of a Chapter 11 filing for some time sayshe is not surprised by the sell-off since Friday marks the expiration of a30-day grace period linked to a lapsed bond interest payment.
In a recent regulatory filing Genco acknowledgedthat bankruptcy is a possibility but sources with close ties to the bulkerowner’s management team have noted they would prefer to clean up itsbalance sheet on its own terms without the aid of a federal judge.
