Genco exits Chapter 11 bankruptcy protection

Genco exits Chapter 11 bankruptcy protection

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by ASSOCIATED PRESS

khou.com

Posted on July 9, 2014 at 5:48 PM

Updated Wednesday, Jul 9 at 5:48 PM

NEW YORK (AP) - Drybulk shipper Genco Shipping emerged from Chapter 11 bankruptcy reorganization.

The company says it reduced its debt by $1.2 billion while eliminating $192.8 million in amortization payments and $40 million in annual interest payments. Genco also says it got $100 million in new capital through a rights offering.

Genco Shipping & Trading Ltd. filed for bankruptcy protection in April, saying it had $1.3 billion in debt and needed to reduce debt and restructure its business.

Drybulk ships carry cargo including iron ore, coal, grain, cement and fertilizer. Genco has 53 vessels, making it one of the largest drybulk shippers in the world. Most of its ships are chartered to third parties, which means fluctuating rates can hurt its revenue: between 2010 and 2013 its total revenue fell almost 50 percent.

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