Rand Logistics files for Chapter 11 bankruptcy

JANUARY 31, 2018 — In a filing with the SEC yesterday, Great Lakes operator Rand Logistics, Inc. (OTCMKT: RLOG) reported that, along with certain of its U.S. subsidiaries, it had filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the District of Delaware.

The bankruptcy filings enable Rand Logistics, which has $236 million of debt, to effectuate a pre-packaged plan of reorganization based on a debt-for-equity swap with Lightship Capital LLC , an affiliate of private equity investor American Industrial Partners.

The subsidiary debtors in the Chapter 11 cases are Rand Finance Corp., Rand LL Holdings Corp., Grand River Navigation Company, Inc., Lower Lakes Transportation Company, Black Creek Shipping Company, Inc. and Black Creek Shipping Holding Company, Inc. None of the company’s Canadian subsidiaries have filed petitions for bankruptcy protection either in the United States or Canada, and they will continue their operations in the ordinary course of business.

The holders of the company’s secured debt have agreed to forbear from taking any action with respect to the Canadian subsidiaries during the expected timeline of the bankruptcy cases.

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