The company said this approval “paves way for expedited emergence from Chapter 11.”
TBS said pursuant to the plan that ownership of the company’s subsidiaries will be transferred to a newly-formed entity owned principally by the company’s lenders. The company’s current equity holders will receive no distributions under the plan, and the company will cease to be a reporting public company.
“The reorganized company will emerge from its pre-packaged restructuring with a healthy capital structure, including approximately $40.0 million in new money financing provided by its existing lenders, which will provide ample liquidity for the company,” TBS said in a statement.
It said debt will be reduced by over $100 million since Sept. 30, 2011 and all vendors will be paid in cash for 100 percent of allowed claims.
Chief Executive Officer Joseph E. Royce said “we look forward to renewing our focus on growing and managing our business.”
“Upon emergence from Chapter 11, the company will have eliminated any possibility of valid vessel arrest due to the bankruptcy process,” TBS said.
