Genco Shipping Reaches Chapter 11 Filing Creditor Accord
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Genco Shipping & Trading Ltd., the operator of dry-bulk cargo ships, said it’s reached a restructuring agreement with a majority of lenders that gives it a road map for a Chapter 11 bankruptcy reorganization.
The pact includes converting a 2007 credit line into 81.1 percent of the equity in the restructured company, according to a Genco regulatory filing today. About $1.1 billion was outstanding on that loan on Sept. 30, data compiled by Bloomberg show. The company’s $125 million of convertible securities would be swapped for 8.4 percent of the equity according to the filing. Current equity holders will receive seven-year warrants for a 6 percent stake.