NEW YORK, July 9, 2014 /PRNewswire/ --Genco Shipping & Trading Limited ("Genco" or the "Company") today announced that it has successfully completed its financial restructuring and has emerged from Chapter 11 of the U.S. Bankruptcy Code.
Through the financial restructuring process, Genco substantially deleveraged its balance sheet on an expedited timeframe, preserving its ongoing business operations, enhancing the reorganized Company's financial flexibility and positioning it for long-term success. More specifically, Genco successfully reduced its outstanding debt by approximately $1.2 billion, reduced its annual interest payment obligations by more than $40 million, and eliminated over $192.8 million annually in amortization payments. In addition, Genco received an infusion of $100 million in new equity capital through a fully backstopped rights offering.
John C. Wobensmith, Chief Financial Officer, said, "Today marks the successful completion of our financial restructuring and the start of a new chapter for Genco. With a substantially deleveraged balance sheet and an infusion of new equity capital, we are well positioned for growth and success. I thank our customers, vendors and employees for their support throughout this process."
Wobensmith added, "As we move forward as a stronger company, we intend to continue meeting and exceeding the expectations of our chartering customers by providing the same high quality, reliable shipping services they've come to consistently expect from Genco."
As previously announced, Genco's prepackaged plan of reorganization (the "Plan") was confirmed by the U.S. Bankruptcy Court for the Southern District of New York on July 2, 2014. 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, its $253 million secured credit facility, and its $100 million secured credit facility, as well as certain holders of the Company's 5.00% Convertible Senior Notes due August 15, 2015.
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 gencorestructuring@gcginc.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 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 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.
Contact
Andrew Siegel / Aaron Palash
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449
SOURCE Genco Shipping & Trading Limited
