Sea Containers, the Bermuda-based marine shipping container leasing company that filed for bankruptcy protection last week, is struggling with an inefficient capital structure and $467 million owed to more than 20 of its largest creditors, but market participants say the company should be able to keep its covenants related to its ABS transactions.

Whether the Bermuda-based company's insolvency will impact the equipment-leasing sector is still unclear. The asset class is a relatively small one. Issuers completed less than five transactions in 2005 and 2004, according to ASR's database.

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