FastShip files for Chapter 11 bankruptcy protection

It was to have been a highspeed containership with a semi-planing hull, gas turbine power and waterjets linking Philadelphia and Cherbourg, France. At one time, there were hopes it could have been in service by 2003. And as recently as this year a RO/RO version was among the designs in a MARAD portfolio of ships suitable for the American Marine Highways project. Now, though, the FastShip project has wound up in the bankruptcy court.

According to law firm Morris James LLP, on March 20, 2012, FastShip, Inc. and two affiliates, FastShip Atlantic, Inc. and Thornycroft, Giles & Co., Inc. (collectively, the “Debtors”), filed for Chapter 11 protection in the U.S. Bankruptcy Court of the District of Delaware. According to the declaration of Roland K. Bullard, II offered in support of the Debtors’ Chapter 11 petitions, the Debtors are privately held companies that attempted to raise seed capital to implement a business plan using patented ship technology to revolutionize international freight transportation. The Debtors cite the inability to raise capital and potential patent infringement by the U.S. government in its design of a new shipping vessel as reasons for the bankruptcy. Through the bankruptcy process, the Debtors will attempt to create a liquidating trust to pursue and monetize a claim against the U.S. government and distribute the proceeds to their creditors.

The cases have been assigned to Bankruptcy Judge Brendan Linehan Shannon. The Debtors have filed a motion for joint administration of the cases under Case No. 12-10968 (BLS).

March 22, 2012