Dortmund, 21 October 2011. On 19 October 2011 the executive board of DS-Fonds Nr. 111 DS Performer und DS Power GmbH & Co. Aframaxtanker KG was forced to file for insolvency. Earlier, the Dr. Peters Group had consented to provide financing resources amounting to USD 5 million within the framework of a business continuation concept. This offer was rejected by the financing banks, who instead called in all existing ship loans, effective as of 19 October 2011.
Following an extraordinary shareholders’ meeting on short notice, the investment company’s executive board was assigned with further negotiations to continue business. In the course of this meeting the shareholders also indicated a willingness to support a sustainable concept with an extensive capital increase. This was followed by intense negotiations. During these discussions the Dr. Peters Group stated that they were prepared to support a business continuation concept with the immediate provision of USD 5 million should the financing banks be willing to make the necessary contributions as well. The aim of the Dr. Peters Group was thus to preserve assets and to overcome the currently difficult market situation. Shareholders as well as the financing banks were to benefit from these measures.
In the end, the banks rejected all proposals despite an initially positive response. A possible reason for this could be an internal disagreement between the financing banks on how to support the business continuation concept.
In view of the called in ship loans the investment company’s executive board was thus forced to file for insolvency on 19 October 2011. Unfortunately, the executive board was presented with no alternative. The banks’ refusal to take joint action in bridging the difficult situation on the global tanker market has lead to a situation where the investment company’s solvency could not be safeguarded with sufficient prospects in this short amount of time.