Shipping firm International Shipholding (ISH) filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court, Southern District of New York and entered into a $16 million DIP credit facility to help pay outstanding debts.
According to a related filing, SEACOR Capital served as administrative agent and lender along with DVB Bank SE as a lender. At July 31, 2016, ISH had an aggregate of $59.5 million due under a facility consisting of a $34.4 million revolving credit facility, $21.7 million under a term loan facility and $3.4 million of letters of credit with a syndicate of lenders led by Regions Bank. Additional amounts owing include $28.0 million to DVB Bank, $16.8 million to Citizens Asset Finance, $5.9 million to Capital One and $1.9 million to ING Bank NV.
Additionally, ISH also has three vessels under operating lease contracts with BMO Harris Equipment Finance, BB&T Equipment Finance and CapitalSource Bank. According to the filing, under default, ISH may be forced to buy bank the vessels for a stipulated loss value of $24.7 million, $22.5 million and $22.1 million, respectively.
The firm has recently been forced to sell a number of assets to cope with record debts, but sales have not brought in sufficient revenue to cover operations.
“Today, we took a critical step toward right-sizing the company’s balance sheet. During the Chapter 11 process we look forward to continuing to provide our customers the same high quality, reliable shipping services they’ve come to consistently expect from us,” said ISH CEO Erik L. Johnsen.
International Shipholding, through its subsidiaries, owns a fleet of 26 vessels, that includes multipurpose heavy-lift dry cargo vessels, a multipurpose ice-strengthened vessel, a mini-bulker, general multipurpose vessels, tankers, container vessels, bulk carriers and tug barges
Like this story? Begin each business day with news you need to know! Register now for FREE Daily E-News Broadcast and start YOUR day informed!