Primorsk Shelves Restructuring Plans
Russian tanker player Primorsk International Shipping has dropped its restructuring plans in favour of pushing through asset sales, reports WSJ.
This is what Primorsk's lawyers told a bankruptcy court in Manhattan on Friday. Creditors have until Wednesday to object to the motion.
Primorsk took the decision as Nordea Bank and other lenders, who are owed around $263m, are pushing the Cyprus-registered line to sell ships as they feel its restructuring plan is unrealistic.
Two deadlines written into a routine cash-spending motion fast-track the sale and could prove controversial with creditors.
The deadlines give the company two weeks to find a broker to facilitate the sale and to then draft rules governing the auction process, which must be approved by the court.
Primorsk, registered in Cyprus, has been at odds with senior lenders since it filed for chapter 11 protection in January. Last month, the company defended its restructuring plan, calling it “110% confirmable.”