Ultrapetrol Bahamas and more than 30 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of New York, lead case number 17-22168. The Company, which is an industrial shipping provider, is represented by Bruce Robert Zirinsky of Zirinsky Law Partners.
According to documents filed with the Court, “Ultrapetrol is in a liquidity crisis that is directly attributable to the impact of deteriorating market conditions affecting the energy and natural resource industries, particularly in South America. While Ultrapetrol’s revenue diversity has historically been a source of stability, concurrent downturns in each of the Company’s underlying markets of operation have created very challenging conditions that are likely to continue for some time.”
Concurrent with the Chapter 11 petition, the Company also filed with the Court a Second Amended Prepackaged Joint Plan of Reorganization and related Disclosure Statement. According to the Disclosure Statement, “Under the Parent-Included Plan, pursuant to the Investment Agreement, …(i) Sparrow River Investments Ltd. (‘New Holdco 1’), an affiliate of Sparrow Capital Investments Ltd. and Sparrow C1 Sub Ltd. (together, ‘Sparrow’), will acquire the River Business (free and clear of any and all claims, interests, liens and encumbrances), including 100% of the New River Business Holding Company Common Stock to be issued pursuant to the Plan, in exchange for cash consideration in the amount of $73.0 million, which will be used to fund distributions to creditors and (ii) Sparrow Offshore Investments Ltd. (‘New Holdco 2’), an affiliate of Sparrow, will acquire the Offshore Business, including 100% of the equity of the Offshore Business Holding Company, a non-Debtor, in exchange for cash consideration in the amount of $2.5 million.”
In addition, “Administrative Claims, Priority Tax Claims, and Other Priority Claims will be paid in full. All Other Secured Claims and General Unsecured Claims will be Unimpaired…..Existing Equity Interests in River Business Holding Company Debtors will be cancelled and discharged.”
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