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General Maritime seeks OK to make plan changes, cut rights offering
By Caroline Salls
Pittsburgh, March 26 - General Maritime Corp. requested court approval to make changes to its plan of reorganization, including the elimination of its rights offering, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of New York.
Under the plan changes, each class of claims or interests against the General Maritime debtors will receive the same or better treatment than under the original plan.
However, the company said it will no longer be implementing a rights offering, primarily because of "divergent views among the parties on the valuation of the rights offering and indications from large holders of the senior notes that were was not a strong interest in participating in the rights offering."
Instead, general unsecured creditors of the company's guarantor debtors will receive $6 million in cash consideration, 2% of the equity in the reorganized debtors and warrants to purchase up to 3% of that equity, up from 2.5% under the original plan.
The recovery for general unsecured creditors will increase to 5.41% under the amended plan from 0.75% to 1.88% under the original plan, the company said in the motion.
To give affected creditors more time to review the modified plan and consider the proposed changes, General Maritime said it has extended the plan voting deadline to April 25 from April 10.
A plan confirmation hearing will be held on May 3. A hearing on the plan changes is scheduled for April 2.
General Maritime is a New York-based provider of international seaborne crude oil transportation services. The company filed for bankruptcy on Nov. 17. The Chapter 11 case number is 11-15285.
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