Genco Shipping & Trading extends subscription period for plan offering

By Caroline Salls

Pittsburgh, May 27 - Genco Shipping & Trading Ltd. said the subscription deadline for the rights offering to acquire common stock under its prepackaged plan of reorganization has been extended to 5 p.m. ET on June 18 from 5 p.m. ET on May 29.

According to a news release, holders of Genco's 5% convertible senior notes due Aug. 15, 2015 seeking to participate in the rights offering must cause their broker or other securities nominee to take action no later than 5 p.m. ET on June 17.

As previously reported, the offering gives holders of claims under Genco's prep-bankruptcy 2007 credit facility the right to subscribe for a number of shares equal to the principal amount of the claims beneficially owned multiplied by 0.0040677811524029 at a subscription price of $18.62537 per share of common stock.

The offering gives convertible noteholders the right to subscribe for a number of shares equal to the principal amount of the notes beneficially owned multiplied by 0.008590432 at a subscription price of $18.62537 per share of common stock.

Only holders of 2007 credit facility claims and convertible notes that are qualified institutional buyers or accredited investors are eligible to participate in the rights offering.

While the rights offering expires at 5 p.m. ET on June 18, the company said the procedures for exercising the rights through the facilities of the Depository Trust Co. by convertible noteholders require that action be taken by brokers and other securities nominees on behalf of their clients by the June 17 deadline in order to exercise the rights by the expiration time.

Genco, a New York-based transporter of iron ore, coal, grain, steel products and other drybulk cargoes, filed bankruptcy on April 21 in the U.S. Bankruptcy Court for the Southern District of New York. The Chapter 11 case number is 14-11108.

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