Genco Shipping & Trading owned by shipping magnate Peter Georgiopoulos has sought Chapter 11 bankruptcy protection on Monday. The company has sought the protection with a plan restructuring package pending approval from creditors which was also revealed earlier this month.
The deal would decrease the company’s current debt valued $1.2 billion. This was shown through a filing to the US Bankruptcy Court in Manhattan. The majority of the company’s debt holders have already approved of the plan, said a report from WSJ.
The bankruptcy filing also showed the company assets valued $2.45 billion and $1.48 billion worth of debts. The statement filed on Monday said that Genco has expected to implement the plan and surface immediately from bankruptcy. No specific timeline was showed in the filing.
The company’s plan to restructure Genco is still pending court approval. The plan called on lenders to swap 81.1 percent of equity they with the $1.06 billion in principal Genco owes in the restructured firm. The company’s two senior credit facilities would also be amended after reaching maturity dates in August 2019.
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