International Shipholding and 17 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of New York, lead case number 16-12220. The Company, which is engaged in waterborne cargo transportation, is represented by David H. Botter of Akin Gump Strauss Hauer & Feld. The Company has entered into a debtor-in-possession $16 million credit facility that may be used to fund, among other things, its working capital needs while in Chapter 11.
Erik L. Johnsen, International Shipholding’s president and C.E.O., comments, “Today, we took a critical step toward right-sizing the Company’s balance sheet. While the company is facing challenges with its debt and capital structure, we believe our core business segments are performing satisfactorily.”
According to documents filed with the Court, “International Shipholding has faced significant challenges over the last two (2) years and has had to make difficult decisions to continue to operate as a going concern….International Shipholding has suffered substantial losses and encountered significant challenges related to complying with its debt covenants and meeting minimum liquidity requirements to operate.”
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