Trailer Bridge sees loss, attempts to refinance
Trailer Bridge, which operates a container liner service between the U.S. mainland and Puerto Rico and the Dominican Republic, on Friday reported a $3.6 million second quarter net loss, compared to a profit of $897,462 in the same 2010 period.
The company said efforts to refinance its debt are ongoing, but in the event it is not able to refinance $82.5 million in public notes due in November, its “finances and ability to operate would be severely impaired and the company could be required to seek protection under federal bankruptcy laws.”
The company had revenue of $29 million in the second quarter versus $31.7 million in the same 2010 period.
Trailer Bridge said its deployed vessel capacity utilization during the second quarter was 91.2 percent southbound and 24.1 percent northbound, compared to 100.1 percent and 29.5 percent, respectively, during the year-earlier period.
The company said it was working with interested lenders and its advisors to refinance its debt, including $82.5 million in public notes, and was exploring a number of options that “might involve the private or public lending market and may include an equity component, and that might result in a change of control.”
It said, “The interest rate the company pays on its overall debt will likely be higher under such refinancing than previously anticipated. In the event the company is not able to refinance the notes, the company's finances and ability to operate would be severely impaired and the company could be required to seek protection under federal bankruptcy laws.”
One of Trailer Bridge’s competitors in the Puerto Rico trade, Horizon Lines, is also working to restructure its debt.