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

People & Company News

Shipping Turns From Banks to Equity Markets for Cash

Shipping companies are turning to equity markets to fill a growing funding gap, betting that investors hungry for decent returns will provide capital to a sector

Keel-Laid for Navy's 10th LCS at Austal Yard

The Navy and Austal USA held a keel-laying ceremony for the future 'USS Gabrielle Giffords', the Navy's 10th littoral combat ship (LCS), in Mobile, Ala., informs

Havyard to Build Hybrid Battery Arctic PSV

Norway's Havyard says it has signed a contract for the construction of a Havyard 833 WE ICE platform supply vessel with Fafnir Offshore HF. The vessel is to be

Legal

Ex-BP Employee Settles Insider-trading Oil Spill Case

A former 20-year veteran of BP plc who oversaw the company's cleanup efforts from the Deepwater Horizon oil spill will pay more than $224,000 to settle civil charges

Somali Pirate Sentenced to 12 Years by German Court

A German court sentenced a Somali asylum-seeker to 12 years in jail on Thursday, for his involvement in the pirate hijacking of a tanker in the Indian Ocean in 2010.

DHL Expects Immunity in Price Fixing Investigation

Deutsche Post expects its DHL forwarding business to be granted immunity from prosecution and fines by Singapore antitrust authorities, who are investigating 11 companies for alleged price fixing,

Finance

Shipping Turns From Banks to Equity Markets for Cash

Shipping companies are turning to equity markets to fill a growing funding gap, betting that investors hungry for decent returns will provide capital to a sector

Canaveral Tops State List for Sand Bypass Funding

The Canaveral Harbor Inlet Sand Bypass Project has earned the top state ranking for 2014/15 inlet management funding. As a result, Port Canaveral is expected to receive $100,

Rotterdam port's throughput almost stable

The Port of Rotterdam’s throughput in the first quarter of 2014, at 109 million tonnes, was 0.2% below the level for the corresponding period last year.Split up by goods type,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Offshore Oil Pipelines Port Authority Ship Electronics Ship Repair Ship Simulators
rss | archive | history | articles | privacy | 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: 0.4791 sec (2 req/sec)