General Maritime Corp. (GMR), the second- largest U.S. owner of oil tankers reorganizing in bankruptcy, reported a net loss of $63.7 million for the month ended Jan. 31.
The net loss since its Nov. 17 bankruptcy filing is $103.5 million, and total assets are $1.67 billion, according to the operating report filed in Manhattan bankruptcy court yesterday. Assets include cash of $15 million and vessels valued at $1.5 billion.
On Feb. 28, the New York-based company won provisional court approval to reorganize even as a bankruptcy judge told creditors to prepare their evidence for an expected fight over final approval of a Chapter 11 plan. The proposed terms will cancel all of General Maritime’s old stock and give all the stock in a new company to Oaktree Capital Management LP (OAKTRZ).
Reorganization costs made up the bulk of the company’s expenses, at $54 million, including a $44.9 million write-off of a discount on its Oaktree credit facility and another $7.6 million related to deferred financing costs on the debt.
U.S. Bankruptcy Judge Martin Glenn overruled most objections from a committee of unsecured creditors at the Feb. 28 hearing, and said they can pursue their arguments at a final hearing on the plan in April. Unsecured creditors had objected to the plan, saying Oaktree had a deal with the company “locked up” and that the reorganization proposal wasn’t made in “good faith,” citing a long relationship between Oaktree and General Maritime Chairman Peter Georgiopoulos.
General Maritime operates in more than 230 ports of call in more than 70 countries. The company listed assets of $1.71 billion and debt of $1.41 billion in its Chapter 11 petition in November.
The case is In re General Maritime Corp., 11-15285, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
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