U.S. Shipping files for bankruptcy protection
Tanker company U.S. Shipping Partners said it filed Wednesday for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the Southern District of New York.
In a brief statement the company said the bankruptcy filing was made with a “pre-arranged” restructuring plan that will reduce the company’s leverage and improve its liquidity.
“The plan is supported by a substantial majority of the company’s secured lenders and noteholders,” the company said. “The voluntary pre-arranged filing allows the company to continue its operations in the normal course through the financial restructuring process, providing uninterrupted service to its customers.”
U.S. Shipping provides long-haul marine transportation services, principally for refined petroleum products in the U.S. Jones Act trade. It also moves petrochemicals and commodity chemicals. It said its fleet comprises four integrated tug-barges, one product tanker, three chemical parcel tankers and three articulated tug-barge units.
In January it took delivery of the Golden State, the first in a class of five 49,000-deadweight-ton product tankers being built for it by General Dynamics’ NASSCO division. The company said it would operate the ship on behalf of a joint venture between it and an affiliate of the Blackstone Group on long-term charter to BP.
It said the tanker was part of an overall strategy to modernize its fleet, and that it was to take delivery of another ATB and two additional product tankers this year.
Earlier this month the company filed a lawsuit against Blackstone and others seeking to prevent them from foreclosing upon the Golden State or interfering with management of the joint venture.
U.S. Shipping files for bankruptcy protection
