New York: Belgian firm Sobelmar and some of its subsidiaries, including Sobelmar Shipping, has had to commence Chapter 11 bankruptcy proceedings in a US court in Hartford, Connecticut, it announced on Tuesday.
A spokesman for the bulker operator cited an uncooperative lender for making the drastic action necessary.
“While we are disappointed in the lender’s intransigence, we want to assure our customers and suppliers that Sobelmar will continue to operate in the ordinary course of business during our Chapter 11 proceedings and that we intend to emerge from Chapter 11 on a financially sound footing,” said the spokesman.
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.
Usually the debtor party is allowed to continue running the business as a trustee, known as “debtor in possession”.
Sobelmar listed assets and liabilities of approximately $50m to $100m when it filed for Chapter 11 on Tuesday.
Among its filings were named vessels including 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).