In a new filing with the U.S. Securities and Exchange Commission, Monarch Alternative Capital, led by Michael Weinstock, has disclosed a letter it sent to the independent members of Scorpio Bulkers Inc (NYSE:SALT)’s board of directors. The investor expressed its deep disappointment over the shipping company’s stock performance, which has dropped by 80% since its initial public offering (IPO). In addition, Monarch states in the letter that it wants to meet with Scorpio Bulkers’ independent board members, outside of the presence of the company’s management, for constructive discussion regarding the company’s matters. According to the filing, Monarch holds 34.55 million shares of Scorpio Bulkers Inc (NYSE:SALT), equivalent to 10.31% of the company’s outstanding stock. The stake represents an increase from 34 million shares the investor reported in its previous filing.
Monarch focuses on distressed and bankruptcy situations. The investment firm has more than $5 billion in assets under management (AUM). Monarch is led by an experienced team of professionals that helps the fund exploit the existing investing opportunities both in the United States and Europe. The fund manages a public equity portfolio worth $415.95 million as of March 31.
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Scorpio Bulkers Inc (NYSE:SALT) is engaged in providing marine transportation of dry bulk commodities. The company, which owns 12 vessels, has a market cap of $600.21 million. Recently, Scorpio Bulkers Inc (NYSE:SALT) conducted a public offering of 133 million shares of common stock at $1.50 a share. For the three months ended June 30, 2015, the company posted a loss of $138.6 million, or $0.71 per share, versus a loss of $15.0 million, or $0.11 per share, for the same period last year. During the past 30 days, the company’s stock has increased by 10.43%. Among the funds we track, Monarch is the largest shareholder of Scorpio Bulkers, followed by Marc Lasry‘s Avenue Management and Michael Lowenstein’s Kensico Capital Management, which own 16.53 million shares and 15.34 million shares as of the end of March, respectively.