General Maritime Corp to Emerge from Bankruptcy Soon

Press Release
Thursday, May 03, 2012

General Maritime Corp. expects to emerge from Chapter 11 soon

Financial Indebtedness to be reduced by approximately $600 Million; Oaktree Managed Funds to Provide $175 Million in new capital

. will enable the company  to emerge from Chapter 11 in May 2012

General Maritime Corporation (the "Company") has announced that the U.S. Bankruptcy Court for the Southern District of New York (the "Bankruptcy Court") confirmed the second amended joint plan of reorganization (the "Plan") of the Company and its direct and indirect subsidiaries that are debtors under Chapter 11 of the Bankruptcy Code (the "Debtors").  General Maritime currently expects to emerge from Chapter 11 in May 2012 after the conditions to effectiveness of the Plan are satisfied.

The Plan reflects the terms of a global settlement among the Company's main creditor constituencies that, among other things, provides for a meaningful recovery to the unsecured creditors of the Debtors and resolves all disputes on plan-related issues between and among the Debtors, funds managed by Oaktree Capital Management, L.P. and their investment entities (the "Oaktree Funds"), the Official Committee of Unsecured Creditors (the "Creditors' Committee"), the Company's senior secured lenders, and holders of more than 57% of the Company's Senior Notes.  All voting classes of creditors voted in favor of the Plan, with the Debtors' senior secured lenders voting unanimously in favor of the Plan and approximately 97% in amount and 69% in number of general unsecured creditors voting in favor of the Plan.

The Plan will substantially deleverage the Debtors' balance sheet and position the Debtors to be a financially stronger global enterprise post-emergence.  Through the Plan, (i) the Debtors' financial debt will be reduced by approximately $600 million, (ii) the Debtors' cash interest expense will be reduced by approximately $42 million annually, and (iii) the Debtors will receive a new equity capital infusion of approximately $175 million from the Oaktree Funds. 

 
Jeffrey D. Pribor, General Maritime's Chief Financial Officer, said, "The confirmation of our Plan represents a major milestone and is one of the last remaining steps in our restructuring.  We are proud of what we have accomplished and believe that, through this process, we will establish a foundation to emerge as a stronger and more competitive company. I would like to thank our customers and vendors for their support throughout this process as well as our employees for their ongoing to commitment to General Maritime."

Maritime Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Specialised Reefer Container Operators can Thrive: DMR

Despite growing competition from container lines, specialised reefer operators can still thrive, according to Drewry’s latest Reefer Shipping Market Annual Review & Forecast,

HERCULES-2 Phoenix Rises from the Ashes

Wärtsilä Corporation advises that the HERCULES R&D programme to develop large engine technologies, which was initiated in 2004 as a joint vision by the two major European engine manufacturing groups,

Short-Term Perils of Lower Oil Prices: DW Monday

At present we are seeing lower oil prices as a function of softer demand growth in both Europe and China combined with recent output increases from OPEC, particularly Libya,

Tanker Trends

Ingram Barge Order 20 Tank Barges for 2015

Ingram Barge Company say they will be building 20 tank barges in 2015 to meet growing demand for chemical shipments. While most of the company’s recent tank barges have come through acquisitions,

Finland Grants Support to Three Small LNG Terminals

The Finnish government granted 65.2 million euros (84.22 million US dollar) in subsidies to build three small liquefied natural gas (LNG) terminals to cut on use

Senator Says 2015 Could Be Time for US Oil Export Bill

The top supporter in the U.S. Congress for reversing the 40-year ban on crude oil exports, Senator Lisa Murkowski from Alaska, said next year could be the time for a bill on lifting the restriction.

Finance

Short-Term Perils of Lower Oil Prices: DW Monday

At present we are seeing lower oil prices as a function of softer demand growth in both Europe and China combined with recent output increases from OPEC, particularly Libya,

Nigerian Minister Pledges $1.3 bln for Power Companies

Nigeria's oil minister announced a 213 billion naira (1.3 billion US dollar) bail-out package for power companies on Saturday, nearly a year after the sector was privatised.

Russia's Yamal LNG Project May Tap Wealth Fund in 2014

Russia's Novatek may get funds from the National Wealth Fund for its Yamal LNG project before the year-end, a minister said, as part of government plans to support sanction-hit companies.

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Port Authority Ship Electronics Ship Simulators Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1713 sec (6 req/sec)