Trailer Bridge, Inc. (OTC: TRBRQ) today announced that it has reached an agreement with its major note holders and submitted a restructuring plan to the U.S Bankruptcy Court for the Middle District of Florida (the "Bankruptcy Court") on January 14, 2012. If the plan is approved, Trailer Bridge will seek to emerge from Chapter 11 by the end of March 2012.
After working closely with the largest public note holders , including SEACOR Holdings, Inc. and Whippoorwill Associates, Inc., which collectively represent more than 90 percent of the $82.5 million 9.25% Senior Secured Notes, Trailer Bridge has reached an agreement with the majority note holders on a plan it believes will strengthen its balance sheet and provide long-term security for its operations. As part of this agreement, the majority note holders have agreed to provide the company with exit financing to fund the distributions under the Plan.
Under the proposed plan, current holders of the notes would receive a pro rata share of a $65 million debt instrument and 91 percent interest in the newly restructured company. As a result, upon emergence from bankruptcy, SEACOR Holdings, Inc. will be the company's largest stakeholder and intends to use its extensive maritime transportation experience to assist Trailer Bridge in implementing its strategy to return it to sustainable and profitable operations.
If the plan is approved, secured creditors and contract parties will receive 100 percent payment on their pre-filing claims and unsecured creditors will receive their pro rata distribution from funds made available to them from an exit financing facility provided by the majority note holders. The holders of Trailer Bridge's existing common equity will have the option to receive 9 percent of the reorganized company's common equity or a cash payment of $0.15 per share.
Approval of the plan is subject to a number of conditions, including Court approval, the execution of definitive documentation, and receipt of necessary acceptances from creditor classes and equity interest holders.
Throughout this process, Trailer Bridge has provided uninterrupted service to its customers and continued its normal vessel sailing schedule between Jacksonville, Florida, San Juan, Puerto Rico, and the Dominican Republic.
William G. Gotimer, Jr. and Mark A. Tanner, the company's co-Chief Executive Officers, jointly stated: "We are very pleased to have reached an agreement that strengthens our ability to provide quality service to our customers. We have worked diligently to keep customers, vendors, employees and shareholders apprised of our progress, and greatly appreciate their support. We expect to emerge from this process with a revitalized balance sheet and a stronger company."
January 17, 2012