Genco Shipping Files for Bankruptcy Protection
Genco Shipping & Trading Ltd said it filed for prepackaged Chapter 11 bankruptcy protection after struggling with weak rates due to an oversupply of vessels.
The drybulk shipper said it expected its operations to continue normally and did not require debtor-in-possession finance.
Lenders backing a $1.06 billion credit facility would convert their debt into about 81.1 percent of company's stock, the company said earlier this month.
Genco said on Monday Baltic Trading Ltd, a company formed by Genco, and its units are not included in the restructuring program.
Genco listed total assets of about $2.46 billion and liabilities of $1.46 billion, as of Feb. 28, according to its bankruptcy petition.
The company joins a growing list of shipping companies that have been struggling as charter rates have been depressed by a glut of large new vessels. A U.S. energy boom has also hit some companies as oil shipments to the United States have dropped.
The case is In re: Genco Shipping & Trading Ltd, U.S. Bankruptcy Court, Southern District of New York, No: 14-11108.
(Reporting by Anannya Pramanick in Bangalore; Editing by Don Sebastian)