The Argentinian shipping operator Ultrapetrol received approval by the US Bankruptcy Court of its second amended restructuring plan, which will allow the company to emerge from Chapter 11. According to the plan, Ultrapetrol will exit from bankruptcy protection around the end of this month after implementing agreements reached with the bondholders and creditors. According to the restructuring plan, the river business subsidiaries of the company will be acquired by Sparrow River Investments for 73 million USD. Additionally, Sparrow Offshore Capital will acquire the offshore subsidiaries of Argentinian shipping operator Ultrapetrol for 2.5 million USD, which is subject to their existing debt.
Together with the net proceeds from the sale of the company’s ocean business and funds held in a debt service reserve account will be paid to holders of its 8.875% First Preferred Ship Mortgage Notes due 2021. Other creditors of offshore business are unaffected and will continue to be paid when due in ordinary course of business.
Shareholders will retain their shares in the company, which will no longer own any operating businesses.
The Argentinian shipping operator Ultrapetrol filled for Chapter 11 bankruptcy protection at a court in the US Court for the Southern District of New York in beginning of February 2017. The company suffered from increasing debt, which reached 566 million USD at the end of 2016.
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.