Sea Containers files for Chapter 11

Sea Containers files for Chapter 11    Bermuda-registered Sea Containers has filed for Chapter 11 bankruptcy protection in the United States after failure to pay a $115 million bond due Oct. 15.
   “Although we have not paid the public notes, we are optimistic about the success of our restructuring program and our ability to reach agreement with creditors,” said Bob Mackenzie, chief executive officer of Sea Containers.
   The filing only relates to Sea Containers and two subsidiaries, Sea Containers Services Ltd. and Sea Containers Caribbean Inc.
   The New Jersey ferry company SeaStreak and United Kingdom rail operator Great North Eastern Railway “will continue their normal day to day operations,” Sea Containers said.
   GE SeaCo, its joint venture container leasing business, is “completely unaffected,” the company said.
   “Chapter 11 will allow us the flexibility and the time needed to implement our reorganization plan and to move Sea Containers onto a sustainable financial footing,” Mackenzie said.
   As of Oct. 14, Sea Containers had $650 million of consolidated debt outstanding with $126 million total cash either restricted as security for obligations to third parties or held in subsidiaries unable to be transferred back.
   Last week, the New York Stock Exchange suspended the trading of Sea Container’s common shares and senior notes as the struggling London-based company is still to file its 2005 annual report or any quarterly reports for this year with the Securities and Exchange Commission.