Genco Shipping andTrading Limited (fka GNKOQ)

[PinkBu]

Genco Says Pact Reached With Lenders,Chapter 11 Filing
By Lauren Coleman-Lochner and Mary Childs April 03, 2014

http://www.businessweek.com/news/2014-04-03/genco-says-pact-reached-with-lenders-for-chapter-11-filing-1

Genco Shipping & Trading Ltd. (GNK:US), the operator of dry-bulk cargo ships, said it’s reached a restructuring agreement with a majority of lenders that gives it a road map for a Chapter 11 bankruptcy reorganization.

The pact includes converting a 2007 credit line into 81.1 percent of the equity in the restructured company, according to a Genco regulatory filing today. About $1.1 billion was outstanding on that loan on Sept. 30, data compiled by Bloomberg show. The company’s $125 million of convertible securities would be swapped for 8.4 percent of the equity according to the filing. Current equity holders will receive seven-year warrants for a 6 percent stake.

The shipper said yesterday in a filing it needed to reach a “definitive agreement” by April 4 to keep new accords with lenders in place. New York-based Genco hired Blackstone Group LP in February to advise it on a possible restructuring after its industry suffered from a supply glut that pushed rates down.