The ATM Takes Off – The Innovation Award

2009 was a year when credit evaporated, and cash starved shipping companies were adrift on an illiquid sea.

As Ethan Ram with DVB Capital Markets LLC wrote in Marine Money back in September 2009, “The collapse of freight rates and asset values across most shipping sectors has put a premium on liquidity and access to capital. Today many publicly listed shipping companies are faced with depleted cash reserves, limited or no availability under debt lines, and, worse, debt covenant defaults, which threaten their viability as a going concern. Meantime, given the scarcity of debt, the better-capitalized companies that hope to take advantage of the market downturn are faced with having to fund a significant portion of their acquisitions with equity. For those companies that are able, tapping the public markets for equity regardless of whether to raise “survival capital” or dry powder has been made more challenging by the increase in volatility and the sharp decrease in company valuations.”

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