General Maritime gets OK to make plan changes, cut rights offering

By Jim Witters

Wilmington, Del., April 2 - General Maritime Corp. received approval to make changes to its plan of reorganization, including the elimination of its rights offering, according to documents filed Monday with the U.S. Bankruptcy Court for the Southern District of New York.

Votes previously cast in favor of the original plan, which are not superseded by a subsequent ballot, may be deemed to apply as votes in favor of the modified plan in the same way as if such votes were received following entry of the order, the court ruled.

The voting deadline for all creditors in voting classes is 5 p.m. ET on April 25.

A confirmation hearing on the modified plan is scheduled for 11 a.m. ET on May 3.

Plan changes

As previously reported, 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 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.

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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