Global Maritime files Chapter 11 bankruptcy to wind down operations

By Caroline Salls

Pittsburgh, Sept. 16 – Global Maritime Investments Cyprus Ltd. filed Chapter 11 bankruptcy Tuesday in the U.S. Bankruptcy Court for the Southern District of New York.

Chief restructuring officer Justin Knowles said in a statement filed with the court that Global Maritime filed bankruptcy to wind down its businesses and operations and liquidate its assets.

Knowles said the company has faced difficulty in servicing its debt and funding operating expenses in light of extremely low charter rates for its vessels.

In connection with the bankruptcy filing, Global Maritime is seeking court approval to obtain up to $2 million of debtor-in-possession financing from Francolin.

Interest on the DIP discretionary term loan will be 8%.

The financing will mature on the earliest of Feb. 1, acceleration of the obligations, the effective date of a Chapter 11 plan and 30 days after the bankruptcy filing date if a final order has not been entered.

The company is seeking interim access to $450,000 of the DIP financing.

According to court documents, Global Maritime has $1 million to $10 million in assets and $100 million to $500 million in debt. Knowles said in excess of $169 million of the company’s debt consists of funded credit facility debt.

The company’s largest unsecured creditors are Draco Shipping Pte. Ltd. of Singapore, with a $2.6 million contractual claim; Pegasus Shipping Pte. Ltd. of Singapore, with a $2.6 million contractual claim; ADM Investor Services Ltd. of London, with a $1.89 million trade debt claim; and OW Supply & Trading of Norresundby, Denmark, with a $1.62 million trade debt claim.

The company is represented by Gardere Wynne Sewell, LLP.

Global Maritime is a Nicosia, Cyprus-based dry-bulk shipper. The Chapter 11 case number is 15-12553.

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