International Shipholding amended reorganization plan effective July 3

By Caroline Salls

Pittsburgh, July 3 – International Shipholding Corp.’s first amended modified plan of reorganization took effect on Monday, according to an 8-K filed with the Securities and Exchange Commission.

The plan was confirmed by the U.S. Bankruptcy Court for the Southern District of New York on March 2.

The company said it intends to file a Form 15 with the SEC for the purpose of terminating the registration of its common stock and preferred stock.

According to the 8-K, the registered securities canceled on the effective date include all of the company’s common stock as well as its 9˝% series A cumulative redeemable perpetual preferred stock and 9% series B cumulative redeemable perpetual preferred stock.

International Shipholding said the holders of the outstanding common stock and preferred stock will not receive a distribution on account of their equity interests.

As previously reported, International Shipholding entered into a restructuring support agreement under which Seacor Capital Corp. will serve as the plan sponsor in connection with the company’s remaining business segments that are not part of an $18 million sale.

Under that support agreement, Seacor will contribute $10.5 million in cash to the reorganization process and contribute a debtor-in-possession claim in exchange for 100% of the equity in the reorganized debtors, offer employment opportunities to the debtors’ union members on terms contained in modified collective bargaining agreements, arrange for a $25 million exit facility and assume some of the company’s pre-bankruptcy contracts.

Also under the support agreement, International Shipholding will liquidate some vessels not being purchased by Seacor and satisfy all administrative, priority and, depending on the results of asset sales, all or substantially all secured claims.

Under the plan, priority claims will be paid in full in cash.

Holders of “other” secured claims will be paid in full in cash or receive the collateral securing the claim.

Holders of secured Regions facility claims will receive a share of the proceeds generated from the sale of specified vessels and will receive cash from the specialty business segment sale.

Holders of secured Capital One facility claims and secured Citizens facility claims will receive a share of the proceeds from the sale of any related collateral or take delivery of that collateral.

Holders of secured DVB facility claims will be paid in full in cash, receive the proceeds from the sale of collateral of take delivery of the collateral.

Holders of general unsecured claims will receive trust interests and a share of remaining cash on hand.

Holders of intercompany claims, 510 claims and interests in International Shipholding will receive no distribution.

Holders of intercompany interests will receive no distribution unless all other claims are paid in full, in which case they will receive a share of remaining funds.

Mobile, Ala.-based International Shipholding provides maritime transportation services through its subsidiaries. The company filed bankruptcy on Aug. 31, 2016 under Chapter 11 case number 16-12220.

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