Britannia Bulk, which specialises in moving coal from the Baltics to the UK, could be the first quoted shipping company to face insolvency during the present slump. The New York-listed company said there was a “very high risk” it would default on its loan agreements.

The announcement sent shares in Britannia, which operates 60 to 70 vessels, down 85.8 per cent to $0.27. The company was hoping for an agreement with its lenders to restructure its debt but if it failed would consider liquidation, seeking protection from lenders or other protection under bankruptcy laws.