AMERICAN COMMERCIAL LINES FILES UNDER CHAPTER 11
The major barge and tugboat operator American Commercial Lines LLC, based in Jeffersonville, Ind., has filed for protection from creditors under chapter 11 of the U.S. bankruptcy code.
The filing includes American Commercial Lines LLC, its parent company American Commercial Lines Holdings LLC, American Commercial Barge Line LLC, Jeffboat LLC, Louisiana Dock Co. LLC and 10 other U.S. subsidiaries.
The company said that it filed to reorganize its capital and debt structure while continuing operations.
American Commercial Lines has arranged up to $75 million in debtor-in-possession financing with a group of banks led by JPMorgan Chase Bank.
Over the past year, American Commercial Lines has faced the economic slowdown and what it described as “unforeseen continuing declining barge rates in 2002, lower commodity shipping volumes, excess barging capacity” and a 10-week strike at its shipyard.
For the period May 29-Sept. 27, 2002, American Commercial Lines LLC reported a net deficit of $16.3 million on operating revenues of $235.7 million. As of Dec. 27, 2002, the company had assets of $814 million and liabilities of $769 million.
American Commercial Lines operates some 5,000 barges and 200 towboats on the inland waterways of North and South America, and transports more than 70 million tons of freight annually. Owned by Danielson Holding Corp, American Commercial Lines was formerly part of the railroad group CSX Corp.