Daily News: March 2, 2012

Court Approves General Maritime Disclosure Statement

General Maritime Corporation announced that the U.S. Bankruptcy Court for the Southern District of New York has approved the Disclosure Statement filed in connection with the company’s proposed Joint Plan of Reorganization of the Debtors Under Chapter 11 of the Bankruptcy Code. Approval of the Disclosure Statement allows General Maritime to solicit approval of the plan from its creditors.

The hearing to consider approval of the plan by the Bankruptcy Court is scheduled to commence on April 25, 2012.

General Maritime has made substantial progress in its ongoing restructuring efforts and intends to continue working with its stakeholders to position the company for long-term growth as a provider of international seaborne oil transportation services. Under the plan, the company will receive an infusion of $175 million in new capital from funds managed by Oaktree Capital Management, L.P. The plan also allows general unsecured creditors to participate in the new equity investment on the same economic terms as Oaktree through the rights offering described below. In addition, holders of general unsecured claims against General Maritime Corporation will receive their pro rata share of warrants to purchase 2.5% of the new equity of the reorganized company.

Following the completion of the restructuring process, General Maritime will continue to operate as a going concern and will reduce its funded indebtedness by approximately $600 million. The plan is supported by Oaktree and the company’s banks, which together hold over two-thirds of the claims against the company. The company notes that discussions are ongoing with the Creditors’ Committee and certain other holders of Senior Note Claims, and the company is hopeful that consensus on the plan will be reached. The plan is subject to confirmation by the Bankruptcy Court.

In connection with its approval of the Disclosure Statement, the Bankruptcy Court also set February 28, 2012 as the voting record date for holders of claims and equity interests in the debtors. General Maritime also announced that the court has approved the procedures required to conduct its rights offering.

Kramer Levin Naftalis & Frankel LLP is serving as the company’s legal advisor, and Moelis & Company is serving as the Company’s financial advisor.

General Maritime is a crude and products tanker company operating principally within the Atlantic basin.

Previously on abfjournal.com:

Bloomberg: General Maritime Files Amended Reorganization Plan, Monday, February 27, 2012