Marco Polo Seatrade files bankruptcy after lender sweeps $1.8 million

By Caroline Salls

Pittsburgh, Aug. 1 - Marco Polo Seatrade BV filed Chapter 11 bankruptcy on Friday in the U.S. Bankruptcy Court for the Southern District of New York.

Marco Polo Seatrade was not able to perform under guarantees issued for the performance of its Cargoship and Magellano chartering companies because of the relatively high cost of chartered in-tonnage and low freight income, debtor Seaarland Shipping Management BV attorney Barry Michel Cerneus said in a statement filed with the court.

Cerneus said that the company filed for bankruptcy after pre-bankruptcy restructuring efforts fell through when lender Credit Agricole swept nearly $1.8 million from Marco Polo Seatrade's bank accounts.

"Following the cash sweep, the debtors were left with very few choices," Cerneus said in the statement.

"Rather than further expose the viability of their operations to the risks of an immediate seizure and quick sale of two of key sources of revenue, the debtors commenced these Chapter 11 cases."

In connection with the bankruptcy filing, the company requested access to $1.73 million of cash collateral to fund its operations while in bankruptcy.

According to court documents, Marco Polo Seatrade has $100 million to $500 million of both assets and debt, including $207.41 million of secured debt under an $84.79 million Credit Agricole loan agreement and a $117.66 million Royal Bank of Scotland facility.

Falm International Holding BV directly owns 100% of the company's shares, and Falm Investments Sarl indirectly holds the shares through Falm International.

The company is represented by Bracewell & Giuliani LLP.

Marco Polo Seatrade is an Amsterdam-based vessel owner. The Chapter 11 case number is 11-13634.

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