U.S. Shipping Partners Files Chapter 11

Long-haul marine-transport company U.S. Shipping Partners filed for Chapter 11 bankruptcy protection Thursday, the latest sign of the global recession battering the ports of New York and New Jersey.

U.S. Shipping Partners, whose specialties include transporting refined petroleum, petrochemicals and commodities, blamed its cash-flow troubles on a significant drop-off in cargo demand and greater competition for dwindling cargo.

"The decision to pursue reorganization under Chapter 11 came after extensive efforts to improve the company's liquidity and pursue strategic alternatives," said a press release from the Edison, N.J.-based company.

The bankruptcy filing was made with a "pre-arranged restructuring plan," supported by a majority of U.S. Shipping's secured lenders and note holders, the company said. The reorganization is expected to be completed during the third quarter.

In its filing in U.S. Bankruptcy Court in Manhattan, the company reported $717,443,000 in total assets and $606,534,000 in total debts.

The company's existing fleet consists of 11 tank vessels: four integrated tug barge units; one product tanker; three chemical parcel tankers and three ATBs.

Contact Marcy Frank at mfrank@joc.com .