International Shipholding’s reorganization plan, in which it will be owned by SEACOR Ocean Transport Inc., is expected to become effective in the second quarter of this year.
International Shipholding said the U.S. Bankruptcy Court for the Southern District of New York has confirmed its plan of reorganization.
The plan is expected to become effective in the second quarter of this year “once certain government approvals and authorizations are in place,” International Shipholding said.
When completed, the company will be owned by SEACOR Ocean Transport Inc., a wholly-owned subsidiary of Fort Lauderdale, Fla.-based SEACOR Holdings Inc. SEACOR is a global provider of marine transportation equipment and logistics services, primarily serving the U.S. and international energy and agricultural markets.
“We look forward to continuing operations under the ownership of SEACOR,” said Erik L. Johnsen, International Shipholding president and chief executive officer.
In a press release, International Shipholding said, “With the overwhelming support of those classes of creditors entitled to vote on the plan, the company expects that the terms of the plan will enable the company to emerge from bankruptcy with a highly de-levered capital structure and new partnerships that will position it for long-term success.”
The plan provides for:
• Issuance of new equity in the reorganized company to SEACOR in exchange for a $10.5 million cash infusion from SEACOR and the conversion of $18.1 million in outstanding debtor-in-possession financing claims to equity;
• $25 million in a new senior debt exit facility, a substantial majority of which will be used to satisfy creditor claims under the plan;
• Purchase and transfer by the company of two leased pure car/truck carriers (PCTCs), together with the transfer of additional PCTCs currently owned by the International Shipholding to NYK Group Americas Inc. (or its nominee);
• Sale of certain vessels not being transferred to SEACOR;
• Assumption of certain of the company’s key pre-petition contracts;
• And a settlement between the unsecured creditors committee and the company with respect to the treatment of the general unsecured claims allowed under the plan.
In addition to substantial payments made to unsecured creditors in accordance with various court orders, a trust will be formed for the benefit of certain general unsecured creditors to be funded with $3 million of cash and certain causes of action.
The plan does not provide for a distribution to the preferred or common shareholders of the company.
Bankruptcy court approves International Shipholding’s reorganization plan
