Trailer Bridge (TRBR) Enters Chapter 11 Bankruptcy
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Trailer Bridge, Inc. (Nasdaq: TRBR) has filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code. The petition was filed in the U.S. Bankruptcy Court for the Middle District of Florida.
Strategic Reorganization
The Company’s filing of Chapter 11 comes one day after its $82.5 million 9.25% Senior Secured Notes (“Notes”) became due. The Company believes that this action is the quickest and most efficient way to restructure its balance sheet and ensure the long-term strength of its operations. The Company hopes to complete this reorganization by the end of the first quarter of 2012, and will work closely with its existing debt holders to emerge quickly from Chapter 11.
Subject to Bankruptcy Court approval, and with the help of its financial advisor Global Hunter Securities Trailer Bridge has an agreement for $15 million in debtor-in-possession, or DIP, financing. This financing will enable to the Company to meet its post filing obligations in the ordinary course of business, maintain its sailing schedule and level of service and finance the costs associated with the Chapter 11 process. During the Company’s Chapter 11 case, Trailer Bridge, does not expect any significant or unusual reductions in overhead, and will continue its regular vessel deployment and sailing schedule. Trailer Bridge provides multiple, weekly U.S. Flag sailings between Jacksonville, Florida, and San Juan, Puerto Rico, weekly sailings between Jacksonville, Florida, and the Dominican Republic, as well as weekly inter-island service between Puerto Rico and the Dominican Republic.
Strategic Reorganization
The Company’s filing of Chapter 11 comes one day after its $82.5 million 9.25% Senior Secured Notes (“Notes”) became due. The Company believes that this action is the quickest and most efficient way to restructure its balance sheet and ensure the long-term strength of its operations. The Company hopes to complete this reorganization by the end of the first quarter of 2012, and will work closely with its existing debt holders to emerge quickly from Chapter 11.
Subject to Bankruptcy Court approval, and with the help of its financial advisor Global Hunter Securities Trailer Bridge has an agreement for $15 million in debtor-in-possession, or DIP, financing. This financing will enable to the Company to meet its post filing obligations in the ordinary course of business, maintain its sailing schedule and level of service and finance the costs associated with the Chapter 11 process. During the Company’s Chapter 11 case, Trailer Bridge, does not expect any significant or unusual reductions in overhead, and will continue its regular vessel deployment and sailing schedule. Trailer Bridge provides multiple, weekly U.S. Flag sailings between Jacksonville, Florida, and San Juan, Puerto Rico, weekly sailings between Jacksonville, Florida, and the Dominican Republic, as well as weekly inter-island service between Puerto Rico and the Dominican Republic.
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