Ultrapetrol begins forbearance solicitation for 8 7/8% mortgage notes

By Angela McDaniels

Tacoma, Wash., Feb. 2 – Ultrapetrol (Bahamas) Ltd. began a forbearance solicitation for its 8 7/8% first preferred ship mortgage notes due 2021, according to a 6-K filing with the Securities and Exchange Commission.

The company failed to make the interest payment due on Dec. 15, and the failure to make that payment within 30 days, together with default interest, is an event of default.

The forbearance solicitation will end at 5 p.m. ET on Feb. 9. All holders of record date as of 5 p.m. ET on Jan. 28 are eligible to participate.

Holders who participate will receive a pro rata portion of a $2 million forbearance fee, which is being held in escrow.

As previously reported, the holders of more than 85% of the outstanding notes have already agreed to forbear from accelerating the notes through March 31.

The forbearance agreement also provides for the appointment of two new independent directors and the formation of a special committee that will explore restructuring options.

The tabulation agent for the forbearance solicitation is U.S. Bank NA (800 934-6802 or CTS.specfinance@usbank.com).

Ultrapetrol is a Nassau, Bahamas-based shipping company.

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