Genco Plan Of Reorganization Confirmed By Court
Plan to Reduce Company's Debt by Approximately $1.2 Billion
Genco Expects to Emerge from Chapter 11 in Week of July 7, 2014
NEW YORK, July 3, 2014 /PRNewswire/ -- Genco Shipping & Trading Limited (NYSE: GNK) ("Genco" or the "Company") today announced that the U.S. Bankruptcy Court for the Southern District of New York (the "Court") confirmed its Prepackaged Plan of Reorganization (the "Plan"). Upon completion of the restructuring process, the Plan will reduce the Company's total debt by approximately $1.2 billion and enhance its financial flexibility. The Company agreed with the Equity Committee on a consensual form of confirmation order, which has been entered by the Court. The Equity Committee is being disbanded and no appeals of the confirmation order will be pursued. The company expects to emerge from Chapter 11 in the week of July 7, 2014.
John C. Wobensmith, Chief Financial Officer, said, "We are pleased to have reached this important milestone. We look forward to completing the financial restructuring process and expect to emerge with a stronger financial foundation. We expect to continue providing our chartering customers the same high quality, reliable shipping services they've come to consistently expect from Genco. I thank our customers and vendors for their support throughout this process as well as our employees for their dedication to Genco."
The Plan reflects the terms of the previously disclosed Restructuring Support Agreement with certain of the lenders under its $1.1 billion secured credit facility entered into in 2007 (the "2007 Facility Lenders"), its $253 million secured credit facility (the "$253 Million Facility Lenders"), and its $100 million secured credit facility (the "$100 Million Facility Lenders"), as well as certain holders of the Company's 5.00% Convertible Senior Notes due August 15, 2015 ("the Noteholders").
Mr. Wobensmith added, "We thank our lenders and noteholders, as well as their advisors, who worked with us constructively to position us to complete Genco's financial restructuring in an expedited manner."
Additional information concerning the rights offering and the relevant deadlines may be obtained by contacting the Company's Subscription Agent, GCG, Inc., by telephone at (888) 213-9318 (toll-free) or (614) 763-6125 (international toll) or by e-mail at email@example.com. Information about the rights offering, and the Company's bankruptcy reorganization, can also be found on the Company's restructuring website, www.gencorestructuring.com.
Kramer Levin Naftalis & Frankel LLP is serving as legal advisor and Blackstone Advisory Partners LP is serving as financial advisor to the Company.
About Genco Shipping & Trading Limited
Genco Shipping & Trading Limited transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes. Excluding Baltic Trading Limited's fleet, we own a fleet of 53 drybulk vessels, consisting of nine Capesize, eight Panamax, 17 Supramax, six Handymax and 13 Handysize vessels, with an aggregate carrying capacity of approximately 3,810,000 dwt. In addition, our subsidiary Baltic Trading Limited currently owns a fleet of 13 drybulk vessels, consisting of four Capesize, four Supramax, and five Handysize vessels. References to Genco's vessels and fleet in this press release exclude vessels owned by Baltic Trading Limited.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and observations and include factors that could cause actual results to differ materially such as: the Company's ability to timely and effectively implement and execute its plans to restructure its capital structure; the Company's ability to arrange and consummate financing or sale transactions or to access capital; the extent to which the Company's operating results continue to be affected by weakness in market conditions and charter rates; whether the Company is able to generate sufficient cash flows to meet its liquidity needs, service its indebtedness and finance the ongoing obligations of its business; the Company's ability to continue as a going concern; the Company's ability to obtain Court approval with respect to motions in the Chapter 11 cases; the Company's ability to consummate the Plan; the effects of the Court's rulings in the Chapter 11 cases and the outcome of the cases in general; the length of time the Company will operate under the Chapter 11 cases; the pursuit by the Company's various creditors, equity holders and other constituents of their interests in the Chapter 11 cases; risks associated with third party motions in the Chapter 11 cases; the potential adverse effects of the Chapter 11 proceedings on liquidity or results of operations; the effects of changes in the Company's credit ratings; the occurrence of any event, change or other circumstance that could give rise to the termination of the restructuring agreement or the equity commitment letter; increased administrative and restructuring costs related to the Chapter 11 cases; the Company's ability to meet current operating needs, including the Company's ability to maintain contracts that are critical to its operation, to obtain and maintain acceptable terms with its vendors, customers and service providers and to retain key executives, managers and employees and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K for the year ended December 31, 2013 and subsequent filings on Form 10-Q and Form 8-K.
Andy Brimmer / Andrew Siegel / Aaron Palash
Joele Frank, Wilkinson Brimmer Katcher
SOURCE Genco Shipping & Trading Limited