Sobelmar’s Vessels Protected under Chapter 11
Bulker operator Sobelmar Antwerp said that in connection with its Chapter 11 proceedings in Hartford, Connecticut, the court has granted all of the interim relief that Sobelmar requested.
The court granted the company the right to continue to operate and pay all voyage and operating expenses, pay employees and crew, continue all cash management procedures and maintain all insurance in the ordinary course for the M/V Brasschaat, the M/V Vyritsa, the M/V Kovdor and the M/V Zarachensk.
“It is business as usual for our vendors, customers and charter parties. We have been authorised to continue to pay all of our operating expenses in the ordinary course of business and to honor all of our existing and new charter commitments without risk of business interruption or vessel arrest. We thank our many industry friends for their continuing business with us as we move forward towards a speedy emergence from Chapter 11 as an even stronger business for many years to come,“said a spokesperson for Sobelmar.
The company resorted to Chapter 11 as it was unable to reach an agreement concerning its future debt repayments.
In addition, Chapter 11 serves as an “automatic stay” of any creditor enforcement actions, meaning the US Court has issued an order with worldwide effect that prevents persons from arresting the company’s vessels or disrupting its services.
“Second, because the US Court has authorised us to continue to pay our suppliers, vendors, port charges and other operating expenses in the ordinary course of business, and because we are also authorised to continue to maintain all necessary insurance coverage and class and other certifications, there is no basis for any person to seek to arrest our vessels or disrupt our services even if they were not prevented from doing so by Chapter 11,” the company said.
Sobelmar’s principal legal advisor for the restructuring process and Chapter 11 proceedings is Bracewell & Giuliani LLP, with the Hamburg-based Falkenberg Law Office continuing to provide normal course corporate and maritime legal services. Sobelmar’s financial advisor is Odinbrook Global Advisors LLC.