Companies in the Zacchello Group are filing for Chapter 11 protection. Netherlands-based Marco Polo Seatrade BV, a company managed by Seaarland Shipping Management BV, has filed a voluntary petition for Chapter 11 reorganization in the Southern District of New York in the United States. Associated companies Seaarland Shipping Management BV, Magellano Marine CV and Cargoship Maritime BV have also begun co-ordinated Chapter 11 proceedings. Vessel operations and management services provided by the companies will meanwhile continue in the ordinary course of business, says a company statement.
Other affiliated entities such as Seaarland (Singapore), Seaarland (Hamburg), Seaarland (Mumbai), Global Tanker, SynerGas and Motia have not filed for Chapter 11 protection.
The Chapter 11 filings include the following vessels: Montiron, Diana, Laura, Beth, Louise, Meg.
As a result of the filings in the U.S, says the statement, all creditor actions throughout the world, including any attempts to enforce claims against the companies' vessels, are automatically enjoined from proceeding while the companies reorganize their businesses.
The Chapter 11 filings are part of a long-term restructuring initiated in 2010 when the companies were hit by the drop in the shipping markets. "During the past 12 months, enormous progress has been made as part of a commercially driven restructuring process," says the statement, "but, notwithstanding important goals being reached, certain companies' senior lenders unilaterally reversed their support for these restructuring efforts and started enforcement actions. The companies were therefore compelled to initiate Chapter 11 proceedings to halt those actions and to ensure the uninterrupted operation of vessels and services to their customers."
Seaarland's principal legal adviser for the restructuring process and Chapter 11 proceedings is Bracewell and Giuliani LLP.
August 1, 2011