U.S. Shipping board rejects $225 million offer from Rand Logistics

By Caroline Salls

Pittsburgh, Aug. 4 - U.S. Shipping Partners LP's board of directors has rejected a $225 million non-binding alternative plan of reorganization proposal submitted last week by Rand Logistics, Inc., according to an 8-K filed with the Securities and Exchange Commission.

As previously reported, Rand offered to acquire a majority of U.S. Shipping's assets and assume some liabilities in exchange for a combination of cash, notes and warrants.

According to the 8-K, U.S. Shipping's board determined after consulting with its financial and legal advisers and a steering committee of secured lenders that the company's proposed plan of reorganization will deliver a higher value to stakeholders than they would receive under Rand's proposal.

The board does not believe it is appropriate to negotiate an amendment to U.S. Shipping's proposed disclosure statement that would allow creditors to consider Rand's proposal as an alternative to the existing plan, the 8-K said.

U.S. Shipping is an Edison, N.J.-based provider of long-haul marine transportation services. It filed for bankruptcy on April 30 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 09-12711.

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