Joseph Bonney, Senior Editor | Mar 20, 2012 11:53AM EDT
Trailer Bridge has emerged from Chapter 11 bankruptcy reorganization with a federal judge’s approval of the Puerto Rico carrier’s financial restructuring agreement.
U.S. Bankruptcy Court Judge Jerry Funk approved the agreement between Trailer Bridge and its major bondholders to finance $82.5 million in debt. Holders of those notes will receive a prorated share of $65 million in new notes and 91 percent of the company’s stock.
Seacor Holdings, which was Trailer Bridge’s largest bondholder, becomes the largest shareholder in the company.
The reorganization agreement, which takes effect March 30, will allow trade creditors to receive 95 to 100 percent of their claims in cash. Previous stockholders will receive 9 percent of the reorganized company’s stock or 15 cents s share in cash.
“We have emerged from this as a stronger company,” said co-CEO William G. Gotimer. “Our customers, vendors and employees have supported us throughout this reorganization and now we have solid financial backing.”
Trailer Bridge services, which include truck transportation in the continental U.S. and container-barge services to Puerto Rico and the Dominican Republic, have continued uninterrupted since the filing.
Gotimer noted that the reorganization was approved just four months after Trailer Bridge filed for Chapter 11 last November.
Gotimer and Mark A. Tanner were named co-CEOs in October following the termination of former CEO Ivy Barton Sutter.
Malcom McLean, the late containerization pioneer, Trailer Bridge founded the company in 1991. Trailer Bridge is the smallest of four liner carriers in the Puerto Rico trade and the only one to steer clear of a major antitrust case alleging price-fixing by carriers between 2002 and 2008.
Contact Joseph Bonney at jbonney@joc.com. Follow him on Twitter @josephbonney.
