Bermuda-based oil shipper Windsor Petroleum Transport (WPT) Corporation, a subsidiary of Frontline ltd, has filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court in Wilmington, Delaware.
The company, which operates four very large crude carriers (Pioneer, Progress, British Pride and British Purpose), recorded a debt of over $100 million and assets worth about $50,000 in its Chapter 11 petition.
“The company has entered into a restructuring support agreement with bondholders who hold over 70% of the company`s 7.84% secured notes in a principal amount of $188,590,000.00 as of this date,” WPT said in a statement.
“Under the restructuring and support agreement, the supporting holders of the Notes have agreed to support a plan of reorganization that would convert claims on account of the notes for 100% of the equity in the reorganized company.”
According to WPT, Frontline Ltd will enter into a revised management agreement with the reorganized company and will continue to provide commercial management for its vessels.
During the restructuring process, the company said that it anticipates operating as usual, “meeting all its ongoing trade obligations, and expects to implement the restructuring and emerge from the court-supervised process expeditiously.”
Eight Windsor units also filed for bankruptcy protection.