APRIL 22, 2014 — Peter Georgiopoulos's Genco Shipping & Trading Limited (NYSE: GNK), filed for bankruptcy yesterday.
Mr. Georgiopopulos's General Maritime Corp.filed for bankruptcy in November 2012. Its restructuring gave Oaktree Capital Management LP most of that company's new stock.
Genco said that it and certain of its subsidiaries had filed voluntary Chapter 11 petitions to implement a prepackaged financial restructuring expected to reduce the company's total debt by approximately $1.2 billion and enhance its financial flexibility.
It said the filings were consistent with a previously disclosed restructuring support agreement with certain of the lenders under its $1.1 billion secured credit facility entered into in 2007 its $253 million secured credit facility, and its $100 million secured credit facility, as well as certain holders of the company's 5.00% convertible senior notes due August 15, 2015.
Genco said that all operating entities are expected to continue normal operations during the pendency of the financial restructuring and that Baltic Trading and its direct and indirect subsidiaries are not included in the court-supervised restructuring. Baltic Trading is a separate public company from Genco, with an independent Board of Directors and separate financing. Baltic Trading is expected to continue operating in the normal course.
"Today, with the strong support of our lenders and noteholders, we are moving forward with our previously announced restructuring plan," said John C. Wobensmith, Chief Financial Officer. "We believe the financial restructuring will provide an expedited path to significantly strengthen Genco's balance sheet and improve the company's financial flexibility. Our operations are strong, and once our restructuring is completed, we believe we will be well-positioned for continued growth and success. We continue to leverage our efficient cost structure and opportunistic time charter approach to manage through the drybulk shipping cycle. We look forward to continuing to provide our chartering customers the same high quality, reliable shipping services they've come to consistently expect from Genco."