New York: Belgian bulk carrier operator Sobelmar is still afloat after it announced on Tuesday that the Hartford Connecticut court where it filed for Chapter 11 bankruptcy has granted the interim relief the company requested.
That means its four bulk carriers – Brasschaat (31,800 dwt, built 2009), Vyritsa (35,314 dwt, built 2010), Kovdor (35,315 dwt, built 2010) and Zarachensk (31,800 dwt, built 2009) – are able to continue operating and paying all voyage and operating expenses in the ordinary course, including employee and crew earnings and insurance costs.
A Sobelmar spokesman said: “”It is business as usual for our vendors, customers and charter parties. We have been authorised to continue to pay all of our operating expenses in the ordinary course of business and to honor all of our existing and new charter commitments without risk of business interruption or vessel arrest.”
Sobelmar said it was cornered into taking the Chapter 11 option because of inflexibility on the part of one its creditors.
Chapter 11 is a provision of US law allowing firms that are unable to service their debts or pay creditors the chance to reorganise their business without facing total liquidation of assets and closure of the business.