Trailer Bridge announced that it has reached an agreement with its major noteholders and submitted a restructuring plan to the U.S. Bankruptcy Court for the Middle District of Florida on January 14, 2012. If the plan is approved, the company will seek to emerge from Chapter 11 by the end of March 2012.

After working closely with the largest public note holders, including SEACOR Holdings and Whippoorwill Associates, which collectively represent more than 90% of the $82.5 million 9.25% Senior Secured Notes, the company reached an agreement with the majority noteholders on a plan the company believes will strengthen its balance sheet and provide long-term security for its operations. As part of this agreement, the majority noteholders have agreed to provide the company with exit financing to fund the distributions under the plan.

Under the proposed plan, current holders of the notes would receive a pro rata share of a $65 million debt instrument and 91% interest in the newly restructured company. As a result, upon emergence from bankruptcy, SEACOR Holdings will be the company’s largest stakeholder and intends to use its extensive maritime transportation experience to assist the company in implementing its strategy to return it to sustainable and profitable operations.

If the plan is approved, secured creditors and contract parties will receive 100% payment on their pre-filing claims and unsecured creditors will receive their pro rata distribution from funds made available to them from an exit financing facility provided by the majority noteholders. Additionally, the holders of Trailer Bridge’s existing common equity will have the option to receive 9% of the reorganized company’s common equity or a cash payment of $0.15 per share.

William G. Gotimer, Jr. and Mark A. Tanner, the company’s co-CEOs, stated, “We are very pleased to have reached an agreement that strengthens our ability to provide quality service to our customers. We have worked diligently to keep customers, vendors, employees and shareholders apprised of our progress, and greatly appreciate their support. We expect to emerge from this process with a revitalized balance sheet and a stronger company.”

Trailer Bridge provides integrated trucking and marine freight service to and from all points in the lower 48 states and Puerto Rico and Dominican Republic.

Previously on

Court Grants Approval for Trailer Bridge DIP Loan, Tuesday, November 22, 2011