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Re: Steady_T post# 264

Monday, 04/21/2014 12:28:25 PM

Monday, April 21, 2014 12:28:25 PM

Post# of 438
Genco Shipping Files for Chapter 11 Bankruptcy >GNK

New York shipping tycoon Peter Georgiopoulos's Genco Shipping & Trading filed for Chapter 11 bankruptcy-court protection, with a prepackaged restructuring plan that was negotiated with creditors and unveiled earlier this month.
The company claimed assets worth $2.45 billion and debts of $1.48 billion , according to filings with the U.S. Bankruptcy Court in Manhattan .
Genco's plans to restructure, as described in documents filed with the U.S. Securities and Exchange Commission earlier this month, include converting a $ 1.06 billion credit facility to 81.1% equity in the new company.
Two other senior credit facilities--worth $253 million and $100 million , respectively--will be amended to extend the maturity dates to August 2019 .
Convertible bondholders would receive 8.4% of Genco's new equity. General unsecured claims wouldn't be reduced, and current equity would receive seven- year warrants for 6% of Genco's new equity struck at a $1.295 billion valuation.
Genco is also planning a $100 million rights offering for its reorganized equity, which would be backstopped 80% by the credit facility lenders and 20% by bondholders, meaning those groups have agreed to buy any unpurchased shares.
The company's restructuring plan is subject to bankruptcy-court approval.
Mr. Georgiopoulos has faced headwinds with another company where he is chairman: General Maritime Corp. , which emerged from bankruptcy in 2012 after lowering its debt and receiving a $175 million investment from Oaktree Capital Management LP .
Genco , which is also based in Manhattan , transports iron ore, coal, grain, steel products and other dry bulk cargo world-wide.
Other shipping companies, including Excel Maritime, Overseas Shipholding Group and TMT Group , have filed for Chapter 11 bankruptcy recently, amid an industrywide slump.
Write to Stephanie Gleason at stephanie.gleason@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires
04-21-14 1225ET
Copyright (c) 2014 Dow Jones & Company, Inc.

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