The U.S.-based marine transportation company, which has offices in Mobile, New York, Tampa and Shanghai, and its subsidiaries, have filed for Chapter 11 relief in the United States Bankruptcy Court for the Southern District of New York.
International Shipholding Corp., along with certain of its subsidiaries, has filed voluntary petitions for bankruptcy protection under Chapter 11 of title 11 of the United States Code, the company said yesterday.
The U.S.-based marine transportation company, which has offices in Mobile, Ala., New York, N.Y., Tampa, Fla. and Shanghai, filed the petitions in the United States Bankruptcy Court for the Southern District of New York.
International Shipholding said it intends to continue normal business operations “without interruption” during the bankruptcy proceedings.
In addition, the company has entered into a debtor-in-possession $16 million credit that can be used to fund its working capital needs and facilitate the Chapter 11 process.
International Shipholding filed a series of “first-day” motions with the United States Bankruptcy Court asking the court to approve, among other things, the payment of wages, salaries and other employee benefits, during the proceedings, as well as payments to certain critical vendors. The company said it expects the court to approve the requests, and to be able to pay suppliers in full for all goods and services provided after the filing date, as required by the Bankruptcy Code.
“Today, we took a critical step toward right-sizing the Company’s balance sheet,” President and CEO Erik L. Johnsen said in a statement. “While the company is facing challenges with its debt and capital structure, we believe our core business segments are performing satisfactorily. During the Chapter 11 process we look forward to continuing to provide our customers the same high quality, reliable shipping services they’ve come to consistently expect from us.”
International Shipholding Corp. and its subsidiaries, which include Central Gulf Lines, Inc.; Waterman Steamship Corporation; United Ocean Services, LLC.; LCI Shipholdings, Inc.; CG Railway, Inc.; LMS Shipmanagement, Inc.; and East Gulf Shipholding, Inc., operate 51 vessels providing marine transportation in the Jones Act trade, pure car/truck carrier services, roll-on/roll-off, breakbulk/bulk services, domestic coastwide, international container, multipurpose and rail ferry transportation.
NEWS FLASH: International Shipholding seeks bankruptcy protection
