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Marco Polo Seatrade DIP loan approved; case dismissal motions denied
By Caroline Salls
Pittsburgh, Nov. 3 - Marco Polo Seatrade BV was granted final approval Thursday by the U.S. Bankruptcy Court for the Southern District of New York to obtain up to $4.8 million of debtor-in-possession financing, according to a court filing.
The financing will be provided by the Royal Bank of Scotland plc and is guaranteed by Seaarland Shipping Management BV, Magellano Marine CV and Cargoship Maritime BV.
The facility will mature on the earliest of April 15, the effective date of a plan of reorganization, conversion of the bankruptcy case or appointment of a trustee and termination of the company's exclusivity.
Interest will be 5%.
The DIP loan agreement requires the company to file a plan of reorganization by Dec. 15, to obtain confirmation of the plan by March 31 and to emerge from bankruptcy by April 15.
In addition, the court denied motions from Royal Bank of Scotland plc (RBS) and Credit Agricole Corporate and Investment Bank to dismiss Marco Polo Seatrade's bankruptcy case.
In its dismissal motion filed in September, RBS said the Marco Polo Seatrade debtors belong in a foreign insolvency proceeding because they are Dutch entities, their affiliates are foreign entities, their vessels operate under foreign flags, their principal offices are in the Netherlands and they have no offices or employees in the United States.
In addition, RBS said their loan documents are governed by foreign law and call for exclusive foreign court jurisdiction for disputes and their secured creditors and the members of the company's unsecured creditors committee are foreign entities.
Status conferences were scheduled for Nov. 4 and Nov. 22 for the company to update the court on its plan of reorganization progress.
Marco Polo Seatrade, an Amsterdam-based vessel owner, filed for bankruptcy on July 29. Its Chapter 11 case number is 11-13634.
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