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General Maritime Emerges From Bankruptcy Protection

by Mike Godfrey, Tax-News.com, Washington

22 May 2012


The second largest operator of oil tankers in the United States, General Maritime Corporation, has announced that it has successfully negotiated the terms of a financial restructuring package for the company to emerge from Chapter 11 bankruptcy protection.

The company applied for bankruptcy protection six months ago after it posted two consecutive years of losses on the back of depressed market rates, and vessel overcapacity globally.

General Maritime said it had substantially deleveraged its balance sheet, reducing its debt by approximately USD600m, down from USD1.4bn previously. The restructuring includes an agreement reached with Oaktree Capital Management, a significant creditor to General Maritime, which agreed to inject USD175m in fresh capital in exchange for a significant portion in the embattled company.

Welcoming the completion of the restructuring process, which will make General Maritime Corporation "a financially stronger global enterprise", Jeffrey D. Pribor, the firm's Chief Financial Officer, said on May 17, that:

"Today marks the successful completion of our financial restructuring and the start of a new chapter for our Company. With enhanced financial flexibility, we are moving forward as a stronger and more competitive company, better equipped to address the challenges of today's tanker shipping market."

"General Maritime will continue to operate one of the world's largest and most diverse fleets of tankers and is committed to safely and efficiently providing seaborne oil transportation services. I also thank our employees around the world, whose hard work and loyalty have been instrumental in enabling us to reach this achievement and who will be important contributors to our future success."

TAGS: marine

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