Ultrapetrol filled for Chapter 11 bankruptcy protection

Ultrapetrol bankruptcyThe Argentinian river barges operator Ultrapetrol filled for Chapter 11 bankruptcy protection at a court in the US Court for the Southern District of New York, after the creditors rejected its restructuring plans. It the filling, the company spotted the the impact of deteriorating market conditions affecting the energy and natural resource industries, particularly in South America. However, the Ultrapetrol’s Board of Directors expect to complete the restructuring, emerge from court-supervised process expeditiously, to be concluded within 60 days. During this period all the vessels of the company will operate normally and the vendors, employees and unsecured creditors will receive full payments.

Under the restructuring plan of Ultrapetrol, the creditors holding 290.1 million USD principal amount will receive about 84.0 million USD in cash in full settlement of indebtedness. The proposed plan will restructure company and subsidiaries secured debt and pay in full allowed claims of unsecured creditors.

“We are very pleased to have received consent from all of our lenders and most of our bondholders to go forward with the prepackaged Chapter 11 plan, which we expect will improve the long-term health and vitality of our river business and our offshore business going forward”, said the Chairman and Chief Executive Officer of Ultrapetrol, Eduardo Ojea Quintana. “The prepackaged Chapter 11 plan is the result of more than 18 months of negotiations with lenders and bondholders, and we believe it will leave our river business and offshore business able to strongly compete in our markets. We have taken steps to diminish the impact of this process on our vendors, customers and employees, and we intend to move forward as expeditiously as possible to complete the restructuring. Our vessels will continue to operate as scheduled”, added he.

Ultrapetrol is industrial transportation company serving customers worldwide, but having increase presence on the South American market. The shipping company operates hundreds of river barges, as well as OSVs, product tankers and feeder boxships. The company accumulated debt of 566 million USD and its financial position worsened during the last year, because of the crisis in the entire market.