Ultrapetrol set to emerge from Chapter 11

Ultrapetrol set to emerge from Chapter 11

Argentina’s Ultrapetrol has had its second amended prepackaged plan of reorganisation approved by the U.S. Bankruptcy Court.

The plan will see the company emerge from Chapter 11 around the end of this month, implementing agreements reached with the company’s lenders and bondholders.

Ultrapetrol’s river business subsidiaries will be acquired by Sparrow River Investments for $73m and proceeds of the sale together with the net proceeds from the sale of the company’s ocean business and funds held in a debt service reserve account will be paid to holders of its 8.875% First Preferred Ship Mortgage Notes due 2021. All other creditors will be paid in full.

Additionally, Sparrow Offshore Capital will acquire Ultrapetreol’s offshore subsidiaries for $2.5 million subject to their existing debt.

Shareholders will retain their shares in the company, which will no longer own any operating businesses.

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.

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