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Genco’s Reorg Plan to Reduce Debt by Approximately $1.2 Billion

July 07, 2014, 08:06 AM
Filed Under: Bankruptcy

Genco Shipping & Trading Limited announced that the U.S. Bankruptcy Court for the Southern District of New York (the "Court") confirmed its Prepackaged Plan of Reorganization (the "Plan").  Upon completion of the restructuring process, the Plan will reduce the Company's total debt by approximately $1.2 billion and enhance its financial flexibility.  The Company agreed with the Equity Committee on a consensual form of confirmation order, which has been entered by the Court.  The Equity Committee is being disbanded and no appeals of the confirmation order will be pursued.  The company expects to emerge from Chapter 11 in the week of July 7, 2014.

John C. Wobensmith, Chief Financial Officer, said, "We are pleased to have reached this important milestone.  We look forward to completing the financial restructuring process and expect to emerge with a stronger financial foundation.  We expect to continue providing our chartering customers the same high quality, reliable shipping services they've come to consistently expect from Genco.  I thank our customers and vendors for their support throughout this process as well as our employees for their dedication to Genco."

The Plan reflects the terms of the previously disclosed Restructuring Support Agreement with certain of the lenders under its $1.1 billion secured credit facility entered into in 2007 (the "2007 Facility Lenders"), its $253 million secured credit facility (the "$253 Million Facility Lenders"), and its $100 million secured credit facility (the "$100 Million Facility Lenders"), as well as certain holders of the Company's 5.00% Convertible Senior Notes due August 15, 2015 ("the Noteholders").

Wobensmith added, "We thank our lenders and noteholders, as well as their advisors, who worked with us constructively to position us to complete Genco's financial restructuring in an expedited manner."

Kramer Levin Naftalis & Frankel LLP is serving as legal advisor and Blackstone Advisory Partners LP is serving as financial advisor to the Company.

Genco Shipping & Trading Limited transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes. Excluding Baltic Trading Limited's fleet, we own a fleet of 53 drybulk vessels, consisting of nine Capesize, eight Panamax, 17 Supramax, six Handymax and 13 Handysize vessels, with an aggregate carrying capacity of approximately 3,810,000 dwt. In addition, our subsidiary Baltic Trading Limited currently owns a fleet of 13 drybulk vessels, consisting of four Capesize, four Supramax, and five Handysize vessels. References to Genco's vessels and fleet in this press release exclude vessels owned by Baltic Trading Limited.

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