Ultrapetrol (Bahamas) amended pre-packaged plan effective March 31

By Caroline Salls

Pittsburgh, April 3 – Ultrapetrol (Bahamas) Ltd.’s second amended pre-packaged plan of reorganization took effect on Friday, according to a notice filed with the U.S. Bankruptcy Court for the Southern District of New York.

The plan was confirmed on March 17.

Ultrapetrol said the plan will restructure its secured debt and pay in full allowed claims of unsecured creditors, allowing the company to improve its balance sheet with the goal of returning to overall profitability in light of current and expected demand in the shipping markets in which Ultrapetrol and its subsidiaries operate.

Ownership of the company’s river business subsidiaries and offshore business subsidiaries will be purchased under the plan by a newly formed entity owned by affiliates of Ultrapetrol’s largest shareholder.

Creditors holding in excess of $290.1 million principal amount are to receive $84 million in cash in full settlement of their debt.

Equityholders will not receive any distributions, and Ultrapetrol expects that shortly after emergence from Chapter 11 it will dissolve and cease to be a reporting public company.

Ultrapetrol, a Nassau, Bahamas-based shipping company, filed bankruptcy on Feb. 6. The Chapter 11 case number is 17-22168.

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