After 12 vessels had been seized, Deiulemar Shipping decided it was the end for the firm.
Italian dry freight group Deiulemar Shipping SpA (Deiulemar Shipping) has declared bankruptcy with debts of more than €500 million ($647 million), according to statements by the firm and an Italian court.
"Deiulemar Shipping was declared bankrupt by the court of Torre Annunziata this week," said Astolfo Di Amato, the lawyer representing Deiulemar Shipping.
"Unfortunately, the source of much pride has vanished into thin air and the hopes of a recovery have ceased," the firm said on their website, who in July was reported to be seeking liquidation to avoid formal bankruptcy proceedings.
The slump in the shipping industry has claimed a number of notable casualties this year, including one of the world's oldest shipping companies in Stephenson Clarke Shipping Ltd, who with a 282 year history held the title of Britain's oldest shipping company.
Astolfo Di Amato, lawyer for Deiulemar Shipping SpA
we started making new calculations to evaluate whether it was possible to come out with a new plan
Deiulemar Shipping had a more modest 7 years under its belt, formed in 2005 by a "transfer of the business" from Deiulemar Compagnia di Navigazione, itself going bankrupt in May 2012 owing about €860 million ($1.1 billion) having said to have irregularly issued around €700 million ($905 million) of bonds.
Since then, nine members of the founding families of Deiulemar Compagnia di Navigazione have been arrested and earlier in the year Italian prosecutors seized assets totaling €323 million ($399.5 million) which included 10 of its vessels.
On September 18, 2012 two more vessels were seized.
"At that point we started making new calculations to evaluate whether it was possible to come out with a new plan but we thought this was not possible and asked for the company to be declared bankrupt," Di Amato told Reuters.