General Maritime: Operations Continuing as Normal

Restructuring Information

November 19, 2011

On November 17, 2011, General Maritime - a leading provider of international seaborne oil transportation services - announced that it had reached agreements with certain of its key senior lenders, including its bank group, led by Nordea Bank Finland plc, New York as administrative agent, as well as affiliates of Oaktree Capital Management, L.P., on the terms of a financial restructuring to strengthen the Company's balance sheet and enhance its financial flexibility. General Maritime believes these agreements and the related equity commitment letter, under which the Company will receive an infusion of new capital of at least $175 million, underscore its lenders' confidence in its business and represent an important step forward for the Company. Under terms of the agreement, the Company expects to substantially reduce its funded indebtedness.

In order to implement the terms of the restructuring agreement and equity commitment letter, General Maritime elected to file for relief under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York. Substantially all of the Company's subsidiaries - with the exception of those in Portugal, Russia and Singapore - have also commenced Chapter 11 cases.

In conjunction with the filing, General Maritime has received a commitment for up to $75 million in new debtor-in-possession (DIP) financing from a group of lenders led by Nordea as administrative agent. In addition, the credit facility contemplates that, if needed, the Company will have access to another $25 million of future financing, subject to the applicable lenders' agreement, certain other conditions and further order of the Bankruptcy Court. Upon approval by the Bankruptcy Court, the new financing, combined with cash generated from the Company's ongoing operations, will be used to support the business during the restructuring process. General Maritime anticipates that it will continue to meet its obligations going forward to its customers, suppliers and employees.

General Maritime intends to move through this restructuring process as quickly as possible and looks forward to working with all of its stakeholders to complete a successful financial restructuring.


Related article: General Maritime Reaches Agreement on a $175 Million New Equity Investment and an Agreement With a Steering Committee of Senior Lenders on Key Terms to Restructure Debt     17 Nov 2011


General Maritime Corp. press release