Trailer Bridge, Inc. (OTC: TRBRQ) reports that it has emerged from Chapter 11 proceedings.
William G. Gotimer, Jr. and Mark A. Tanner, the company's co-Chief Executive Officers, jointly stated, "Today marks the beginning of a new era for Trailer Bridge. While we are pleased to announce today's developments, we are most proud of the fact that throughout the bankruptcy period we have successfully and consistently met the needs of our customers and vendors. Trailer Bridge has a young fleet of vessels and a cost-friendly model that provides significant benefits to our customers. With this new capital structure and ownership we believe we can improve our service in a number of ways to the benefit of all concerned."
Throughout the Chapter 11 process, Trailer Bridge continued to provide uninterrupted service to its customers and operated on its normal vessel sailing schedule between Jacksonville, Florida; San Juan, Puerto Rico; and the Dominican Republic.
"We maintained strong volume throughout the period and are pleased with the support shown by our customers. The emergence from bankruptcy on our previously announced timeframe has provided financial stability for the Company and positions Trailer Bridge for improved performance," said Mr. Gotimer and Mr. Tanner.
Trailer Bridge submitted a restructuring plan to the United States Bankruptcy Court for the Middle District of Florida on January 14, 2012 that was approved by a Federal judge on March 16, 2012.
Under the Company's restructuring, its largest public note holders including SEACOR Holdings Inc. and Whippoorwill Associates, Inc., which collectively represented a majority of the $82.5 million, 9.25% Senior Secured Notes (the "Notes"), will receive at least 91% percent of new stock in Trailer Bridge and retain a $65 million debt instrument. As a result, SEACOR Holdings Inc. is now the company's largest stakeholder, will have three seats on the Board of Directors, and intends to use its extensive maritime transportation experience to assist the Company in implementing its strategy to return to profitable operations.
As a result of Trailer Bridge securing $31.5 million in exit financing from its majority note holders, the company will pay unsecured creditors and contract parties 95-100% payment on their pre-filing claims.
Holders of Trailer Bridge equity will receive a cash payment of $0.15 per share. Those shareholders that hold more than 2,500 shares will have the option to elect to receive their share of 9 percent of the reorganized Company's common equity.
Trailer Bridge expects its new stock to continue trading on the Pink Sheets under the ticker symbol "TRBR." It will no longer be filing reports with the Securities and Exchange Commission.
April 2, 2012