However, following the ongoing and prolonged
shipping downturn, the KG system has faced a major
crisis. More than 150 single-ship funds have filed for
bankruptcy in 2012, and a further 500 to 1,000 risk
insolvency, according to some estimates (Journal
of Commerce, 2013). Investors have therefore lost
faith in the current KG financing model for shipping
investments, and shipping companies are seeking
complementary or alternative modes and sources of
ship financing