Genco’s Restructuring Plan Okayed

Genco Shipping & Trading, operator of dry cargo ships, has obtained approval from the U.S. bankruptcy judge Sean Lane to proceed with its restructuring plan, writes Reuters.

The company filed voluntary Chapter 11 petitions in April, 2014 to implement a prepackaged financial restructuring that is expected to reduce its total debt by approximately $1.2 billion.

Seeking relief under Chapter 11 put Genco alongside other shippers that have recently fallen victims to sluggish market conditions and dip of international shipping rates brought about by overtonnage.

During the hearing held on Wednesday in Manhattan, the only to oppose the restructuring scheme were some of the company’s shareholders who claimed that the plan only aims to transfer control to creditors and management.

Their opposition was fueled by the judge’s decision not to give any recovery  to the equity holders having in mind that they haven’t expressed  interest in investing their “own money in a transaction involving the debtor,” Bloomberg cited judge Lane as saying.

The restructuring plan envisages giving secured lenders 81 percent of Genco’s reorganized equity.

The company’s obligations under the Convertible Senior Notes will be converted into 8.4% of the equity of the reorganized company.

World Maritime News Staff

Share this article

Follow World Maritime News

In Depth>


<< Feb 2020 >>
27 28 29 30 31 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 1

Eastern Mediterranean Offshore Conference and Exhibition (EMC) 2020

EMC 2020 conference will arm delegates with technical and commercial knowledge to capitalise…

read more >


Forum you will find out from the regulators, government bodies and major ports’ representatives what the near…

read more >

Belgian Offshore Days 2020

During this event, a conference will be held with focus on “Increasing value by data driven innovation…

read more >

7th Annual Arctic Exchange

Every year the Exchange invites delegates from across the globe to come together to listen to key senior management teams…

read more >