After getting agreement from its principle creditors, the shipping company will re-emerge with a ‘significantly reduced debt load’ and trade under the new name Norse Merchant.
Joint administrators from Ernst & Young have worked together with the advisers of Cenargo’s main creditors First Priority Ship Mortgage Notes, to convert their $175m (£110m) debt into Norse Merchant equity.
According to administrators Alan Bloom, Mike Rollings, and Shagun Dubey, the restructuring will also provide trade creditors with a ‘significantly better’ return than they would have received if Cenargo had gone into liquidation.
Cenargo filed for Chapter 11 bankruptcy protection in the United States in New York, on 14 January 2003 and entered into administration in the UK on 7 February 2003.
The Chapter 11 proceedings were subsequently suspended.
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies