Shipping company Toisa Ltd filled for bankruptcy

Toisa shipThe offshore oil and gas supply shipping company Toisa Ltd filled for bankruptcy protection after falling of demand of its services and inability for loan repayment, as well as low cash flows. The Bermuda-chartered company and 23 of its affiliated vessel-owning companies filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court in Manhattan, New York. Toisa Ltd accumulated over 1 billion USD debt during the years of crisis in offshore and shipping sector. The shipping company is in talks with lenders this month in London, but sought bankruptcy after several lenders took action on their loans, including seeking to seize the company’s ships. However, the operations of the vessel of Toisa Ltd will not be interrupted and Board of Directors will seek for option of restructuring, including debt restructuring and assets sale.

“Due to its sufficient liquidity, the company’s business operations and relationship with its customers and vendors will not be adversely affected by this proceeding while it works constructively with lenders toward a consensual resolution”, says the official statement of the offshore oil and gas supply company Toisa Ltd. “The company’s charterers, shippers and receivers of all cargoes carried aboard its vessels are also afforded the aforementioned administrative status. As such, they will continue to receive uninterrupted service from the company and the company will perform all of its duties and obligations under its current and future charter parties”, adds the statement.

The shipping company Toisa Ltd, owned by Greek shipping magnate Gregory Callimanopulos, has a fleet of 26 offshore oil service vessels, 13 tankers and 7 bulk carriers, according to documents filed with the US Bankruptcy Court in Manhattan. The fleet is managed and operated by Aberdeen, Scotland.

Oil prices have fallen by about half since 2014, and offshore energy producers have responded by cutting back on capital spending which has undermined demand for supply vessels. It hit many offshore oil service firms.