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SOURCE Windsor Petroleum Transport Corporation
NEW YORK, July 15, 2014 /PRNewswire/ -- Windsor Petroleum Transport Corporation (the "Company") and several of its subsidiaries and related entities today filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court in Wilmington, Delaware. In connection with the filing the Company has entered into a restructuring support agreement with bondholders who hold over 70% of the Company's 7.84% secured notes (the "Notes") in a principal amount of $188,590,000.00 as of this date. Under the restructuring and support agreement, the supporting holders of the Notes have agreed to support a plan of reorganization that would convert claims on account of the Notes for 100% of the equity in the reorganized company. Frontline Ltd ("FRO") will enter into a revised management agreement with the reorganized company and will continue to provide commercial management for its vessels.
The Company believes that the reorganized balance sheet will provide for a strong operating platform and provide the best possible position for the reorganized company going forward.
Importantly, all operating entities are expected to continue normal operations during the pendency of the financial restructuring. The Company projects that a consensual cash collateral order will provide sufficient cash to fund its operations during its financial restructuring. In conjunction with today's filings, the Company also expects to file a variety of customary motions to continue to support its customers and vendors during the financial restructuring process. The Company expects to file motions seeking permission to continue to pay trade creditors and foreign vendor balances incurred before and after the filing in full and in the normal course. The Company expects to receive court approval for these requests. During the restructuring process, the Company anticipates operating as usual, meeting all its ongoing trade obligations, and expects to implement the restructuring and emerge from the court-supervised process expeditiously.
The Company's principal bankruptcy attorneys are Young Conaway Stargatt & Taylor, LLP.
This press release is for informational purposes only and is not a solicitation to accept or reject a plan of reorganization or an offer to sell or a solicitation of an offer to buy any securities of the Company. Any solicitation or offer to sell will be made pursuant to and in accordance with the solicitation and disclosure statement distributed to holders of the Company's Notes and applicable law.
This press release contains forward-looking statements, which are based upon various assumptions. The words "anticipates", "believe", "continue", "could", "estimate", "expect", "intends", "may", "might", "plan", "possible", "potential", "predicts", "project", "should", "would" and similar expressions may identify forward looking statements, but the absence of these words does not mean that a statement is not forward looking. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company's control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.
For additional information, contact:
1 (203) 550-2621
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