Genco Shipping announces trading launch for new common stock, warrants

By Caroline Salls

Pittsburgh, July 30 – Genco Shipping & Trading Ltd. said trading through one or more market makers began on the OTC Bulletin Board for its new common stock and warrants to purchase new common stock.

According to a company news release, the new common stock will trade under the symbol GSKNF and the warrants under the symbol GNKSF.

As previously reported, on the effective date of the company’s Chapter 11 plan, new seven-year Genco equity warrants were issued and distributed to holders of old common stock, which was cancelled on the effective date.

The warrants are exercisable for one share of new Genco common stock on a cashless basis at an exercise price of $20.99 per share.

Meanwhile, the reorganized company distributed 50.06 million shares, representing 81.1% of its new common stock to holders of 2007 pre-bankruptcy facility claims on July 10 and 5.16 million shares, representing 8.4% of the new stock, to holders of convertible note claims.

In accordance with the plan, Genco conducted a fully backstopped rights offering to acquire 8.7% of the new common stock at a subscription price of $18.62537 per share, for a total subscription price of $100 million.

With all conditions satisfied, reorganized Genco said it issued 5.31 million rights offering shares to holders of 2007 facility claims and 63,773 backstop shares to the rights offering backstop parties.

Genco, a New York-based transporter of iron ore, coal, grain, steel products and other drybulk cargoes, emerged from bankruptcy on July 9.

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