General Maritime Reorganizes

Thursday, February 02, 2012

General Maritime Files Plan of Reorganization and Disclosure Statement; Plan Supported by the Company's Key Senior Lenders.

 

General Maritime Corporation announced today that it has filed a Plan of Reorganization (the "Plan") and a Disclosure Statement (the "Disclosure Statement") with the United States Bankruptcy Court for the Southern District of New York (the "Court").  The Company intends to seek confirmation of the Plan by April 2012.

 

Under the terms of the Plan, the Company will receive an infusion of $175 million in new capital from funds managed by Oaktree Capital Management, L.P. ("Oaktree"), less the amount raised in the rights offering described below, will continue to operate as a going concern and will reduce its funded indebtedness by approximately $600 million.

 

Jeffrey D. Pribor, General Maritime's Chief Financial Officer, said, "The filing of our Plan represents a significant milestone in our financial restructuring efforts.  We have made good progress and are confident that this process will strengthen our balance sheet and enhance our financial flexibility without compromising our commitments to our valued customers, vendors and employees.  We look forward to emerging as a stronger company, positioned for long-term growth as a leading provider of international seaborne oil transportation services."

 

Mr. Pribor added, "Our stakeholders have helped us make significant progress in our financial restructuring and we look forward to building on our success and our strong business relationships in the months and years to come.  I want to thank our vendors and customers for their loyalty and support, as well as our employees for their continued hard work and dedication."

 

Additional terms of the Plan include:

  • tax claims, obligations under the debtor-in-possession credit agreement, and other obligations secured with assets of the Company will be paid in full, in cash;
  • $75 million of the Company's existing first and second lien secured credit facilities will be paid down, and the Company will enter into new first and second lien secured credit facilities with terms that will provide the Company with critical financial flexibility needed to operate its businesses after its emergence from bankruptcy;
  • the secured amount of the Company's existing third lien credit facility from Oaktree-managed funds will be converted into 50% of the new equity of the reorganized Company on an undiluted basis;
  • holders of general unsecured claims against General Maritime Corporation will receive their pro rata share of warrants to purchase 2.5% of the new equity of the reorganized Company;
  • holders of general unsecured claims against the debtors who guarantee the Company's obligations under its secured facilities have the opportunity to participate in a rights offering to purchase up to 17.5% of the new equity of the reorganized Company on an undiluted basis for up to $61.25 million;
  • holders of general unsecured claims against the non-guarantor debtors will receive any cash available after payment of all senior claims; and
  • holders of old equity interests in General Maritime Corporation will receive no distribution on account of their interests.

 

The Plan provides for a record date of February 8, 2012 for determining generally the holders of general unsecured claims that are eligible to participate in the rights offering.  In addition, holders of general unsecured claims who file a proof of claim after February 8, 2012 but before the general bar date of February 23, 2012, certain additional claims holders as described in the Plan, and transferees of claims in accordance with the Plan may also be eligible to participate in the rights offering.  The rights offering will be limited to those holders of general unsecured claims that are either qualified institutional buyers or accredited investors as defined by applicable securities laws.

 

The above description is an overview summary of the Plan and is qualified entirely by the terms of the Plan and Disclosure Statement as filed with the Court. The Company notes that discussions with the Creditors' Committee and certain other holders of Senior Note Claims are ongoing and the parties are hopeful that consensus on the Plan will be reached. The Plan is subject to confirmation by the Court.  This release is not intended as a solicitation for a vote on the Plan.

 

The Disclosure Statement, which is available at www.GMRRestructuring.com , includes a historical profile of the Company, a description of proposed distributions to creditors, and an analysis of the Plan's feasibility, as well as many of the technical matters required for the solicitation process, such as descriptions of who will be eligible to vote on the Plan and the voting process itself.

 

Additional information about General Maritime's financial restructuring is available via the Company's Restructuring Information Hotline at (888) 435-3302 in North America or internationally at (614) 553-1243.  A website has also been set up by General Maritime's U.S. Claims Agent containing Court documents and other updates ( www.GMRRestructuring.com ).

Maritime Reporter March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Obangame Express 2015 Concludes in the Gulf of Guinea

Maritime forces from Gulf of Guinea nations, Europe, South America, and the United States and several regional and international organizations concluded the multinational maritime exercise,

Scandlines Ferry Back in Service by End June

The damaged Scandlines ferry M/V Prinsesse Benedikte is being repaired at the Polish shipyard Remontowa and is expected to be ready before the end of June 2015.

Greece Will Sell Piraeus Port Stake in Weeks

The Greek government will sell its majority stake in the port of Piraeus within weeks, the country's deputy prime minister told China's official Xinhua news agency,

Legal

Scandlines Ferry Back in Service by End June

The damaged Scandlines ferry M/V Prinsesse Benedikte is being repaired at the Polish shipyard Remontowa and is expected to be ready before the end of June 2015.

Greece Will Sell Piraeus Port Stake in Weeks

The Greek government will sell its majority stake in the port of Piraeus within weeks, the country's deputy prime minister told China's official Xinhua news agency,

US Navy to Roll out Underwater Spy Satellites

The robotic series that remade crusade in skies will shortly extend to a low sea, with underwater view “satellites,” drone-launching pods on a sea building and unmanned ships sport submarines,

Finance

Scandlines Ferry Back in Service by End June

The damaged Scandlines ferry M/V Prinsesse Benedikte is being repaired at the Polish shipyard Remontowa and is expected to be ready before the end of June 2015.

Greece Will Sell Piraeus Port Stake in Weeks

The Greek government will sell its majority stake in the port of Piraeus within weeks, the country's deputy prime minister told China's official Xinhua news agency,

India May Add Japanese Soryu-Class Submarines to its Fleet

India is reportedly considering a project to incorporate six Japanese Soryu-class diesel-electric submarines into its fleet, says The Japan Times.   The Defense

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Salvage Ship Repair Sonar
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: 0.1994 sec (5 req/sec)