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Hvide Marine Emerges From Chapter 11
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| Company Completes Exit Financing, Reorganization Plans | |||
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Hvide Marine Inc., owner of six product and chemical tankers operated under contract with American Maritime Officers, recently emerged from Chapter 11 after establishing an exit financing plan with a group of financial institutions led by Deutsche Bank. Hvide filed for protection under Chapter 11 of the U.S. Bankruptcy Code Sept. 8. Their emergence 98 days after the filing was accomplished with $200 million in loans, $25 million in revolving credit and $85.5 million from senior-secured second lien notes. AMO members fill the licensed positions aboard five newbuilt double-hulled tankers--the 'HMI Brenton Reef', 'Ambrose Channel', 'Cape Lookout Shoals', 'Diamond Shoals' and 'Nantucket Shoals'--operated for Hvide by Interocean Ugland Management. AMO also fills the licensed positions aboard two other tankers in the Hvide fleet. As part of the reorganization, the company has been reincorporated in Delaware, although company offices will remain in Fort Lauderdale, Fla. "We have put Chapter 11 behind us and, in the process, shed more than $430 million in debt and reduced overhead costs substantially," said Jean Fitzgerald, Hvide president, chairman and CEO. "While much has been accomplished, much remains to be done." The company's plan of reorganization was approved by the U.S. Bankruptcy Court for the District of Delaware in early December. All of Hvide's general and trade creditors will be paid in full, according to the company. The term loans and new credit will be used to pay existing debts, cover administrative costs and to provide working capital for the company. Warrants to purchase 6.75 percent of the common stock of the reorganized company are being issued in connection with the senior-secured second lien notes. The company expected the distribution of new stock and warrants to creditors and shareholders under the plan of reorganization to be completed quickly. The company will be led by its current management and governed by a new Board of Directors. | |||
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