Excel Maritime: court denies creditors' bid to terminate exclusivity periods

By Lisa Kerner

Charlotte, N.C., Aug. 29 - Excel Maritime Carriers, Ltd.'s exclusivity extension was not terminated by the U.S. Bankruptcy Court for the Southern District of New York on Thursday, according to an attorney familiar with the case.

As previously reported, the company and its senior lenders objected to the official committee of unsecured creditors' motion to terminate the company's exclusive periods for filing and soliciting votes on a plan of reorganization.

In their objection, the lenders said, "The committee should not be given the opening to launch a competing plan battle that will require the debtors to spend many millions of dollars of the vastly undersecured senior lenders' cash collateral when the debtors' projections already indicate a risk of administrative insolvency."

According to the company's objection, the exclusivity termination motion came only 30 days into Excel's Chapter 11 process.

The company said it has already negotiated a plan with its secured lenders to restructure roughly $1 billion of debt, and it continues to negotiate with the committee.

Excel is an Athens-based owner and operator of dry bulk carriers and a provider of seaborne transportation services for dry bulk cargoes. The company filed for bankruptcy on July 2 under Chapter 11 case number 13-23060.

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