Excel Maritime's amended plan confirmed, emergence from Chapter 11 expected in mid-February

By Lisa Kerner

Charlotte, N.C., Jan. 27 - Excel Maritime Carriers Ltd.'s amended joint Chapter 11 plan of reorganization was confirmed by the U.S. Bankruptcy Court for the Southern District of New York on Monday.

The plan was unanimously accepted by Excel's two voting classes, with 100% of the class of secured lenders and about 92% of the class of impaired Excel general unsecured creditors, by value, voting in favor, according to a company news release.

Excel expects to emerge from Chapter 11 in mid-February.

Once the restructuring process is completed, Excel's total prepetition debt of $920 million will be reduced to about $300 million.

The company's disclosure statement was approved on Dec. 10.

As previously reported, treatment of creditors under the amended plan will include the following:

• Administrative claims, non-tax priority claims and priority tax claims will be paid in full;

• Intercompany claims will either be reinstated in full or in part or cancelled and discharged in full or in part;

• Holders of syndicate credit facility claims will receive a share of a restructured $300 million loan plus 83.3% of the common stock to be issued under the plan before dilution on account of a general unsecured claims rights offering;

• Other secured claims and a Christine Shipco LLC facility secured guaranty claim will be reinstated;

• Holders of impaired Excel general unsecured claims will receive 8% of new common stock, subject to dilution on account of co-investment rights, and a share of tranche A offered shares and tranche B offered shares subscribed for under their co-investment rights.

The rights can be exercised under two separate rights offerings, according to an amended disclosure statement;

• Unimpaired Excel general unsecured claims and unimpaired subsidiary debtor general unsecured claims will be reinstated;

• Holders of impaired subsidiary debtor general unsecured claims will receive no distribution;

• Holders of Excel interests and section 510(b) claims will receive no distribution; and

• Interests in debtors other than Excel will be reinstated.

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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