Toisa files bankruptcy, looks to utilize stay to work out agreement

By Caroline Salls

Pittsburgh, Jan. 30 – Toisa Ltd. filed Chapter 11 bankruptcy Sunday in the U.S. Bankruptcy Court for the Southern District of New York.

Chief financial officer Robert Hennebry said in a statement filed with the court that Toisa began to experience significant cash flow pressure during late summer 2016 and projected that “continued repayment of principle as scheduled would result in cash being exhausted by the middle of 2017.”

Although many of the company’s lenders appeared to be receptive to entering a standstill agreement, Hennebry said others were not.

Hennebry said the company has missed about $49 million in payments since Dec. 31.

As a result of these issues, the CFO said Citi issued an acceleration and demand notice and, on Dec. 24, caused Toisa’s United Journey tanker to be arrested in St. Eustatius in the Caribbean Netherlands.

Since then, Hennebry said several of the company’s other lenders, including DNB Bank ASA, BNP Paribas SA, Danish Ship Finance A/S and Commonwealth Bank of Australia have issued similar acceleration and demand notices. While no other vessels have been arrested, the CFO said other enforcement actions have been taken.

Toisa and the lenders committed on Jan. 12 to work toward a consensual resolution.

“For those discussions to succeed, it was important to obtain a stay of further enforcement actions,” Hennebry said.

“With the protections afforded by chapter 11 of the Bankruptcy Code, it is hoped that those discussions will result in agreements.”

According to court documents, Toisa has $1 billion to $10 billion in both assets and debt.

The company’s largest unsecured creditors are China Shipping Industry (Jiangsu) Co., Ltd. of Jiangsu Province, China, with a $23.12 million contract counterparty claim and Price Forbes & Partners Ltd. with a $1.15 million insurance claim.

No other unsecured creditors were listed with claims of $1 million or more.

The company is represented by Togut, Segal & Segal LLP.

Toisa is a Hamilton, Bermuda-based shipping business. The Chapter 11 case number is 17-10184.

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