Cenargo finds route out of administration
Embattled UK shipping company Cenargo has finalised plans for the restructuring of its debt and reorganisation of its capital structure.
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.