The US Bankruptcy Court for the Southern District of New York has confirmed a reorganization plan for Alabama-based shipping company International Shipholding Corporation (ISH) that will continue operations under the ownership of Seacor.
The plan, which is expected to help ISH emerge from bankruptcy, will become effective in Q2 2017 once certain government approvals and authorizations are in place.
“International Shipholding is pleased that the plan of reorganization has been confirmed and we are moving towards a successful completion. The company worked with our secured lenders, Seacor, our labor unions, the unsecured creditors committee, and other interested parties to obtain the consensual confirmation of the plan of reorganization, and we look forward to continuing operations under the ownership of Seacor,” Erik L. Johnsen, ISH’s President and CEO, said.
The plan provides for the issuance of new equity in the reorganized company to Seacor in exchange for a USD 10.5 million cash infusion and the conversion of USD 18.1 million in outstanding debtor-in-possession financing claims to equity.
In addition, the plan includes USD 25 million in a new senior debt exit facility, a substantial majority of which will be used to satisfy creditor claims.
Furthermore, under the plan, ISH will sell its pure car/truck carriers (PCTCs) to NYK Group Americas.
In August 2016, ISH, along with some of its subsidiaries, filed voluntary petitions for relief under Chapter 11 of the United States Code in the bankruptcy court.