Sobelmar Seeks Bankruptcy Protection

zoom Bulker operator Sobelmar Antwerp N.V. and certain of its subsidiaries have commenced Chapter 11 reorganization proceedings in the United States Bankruptcy Court for the District of Connecticut (Hartford). The company said that the Chapter 11 process will facilitate its restructuring as Sobelmar pushes to restore long-term financial health. Even though Sobelmar remained current on its debt service until its vessel lender recently imposed a very high penalty rate, it has become increasingly clear that, in light of the unwillingness of the lender to work with Sobelmar on an out-of-court restructuring, Sobelmar needs the protection of Chapter 11 to ensure the uninterrupted operation of our vessels and services to our customers, spokesperson for Sobelmar said in a statement. While we are disappointed in the Lenders intransigence, we want to assure our customers and suppliers that Sobelmar will continue to operate in the ordinary course of business during our Chapter 11 proceedings and that we intend to emerge from Chapter 11 on a financially sound footing, the statement further read. The Chapter 11 filings include Marshall Ilsands-based companies SBM-1 Inc. ( M/V Brasschaat), SBM-2 Inc. (M/V Vyritsa), SBM-3 Inc. (M/V Kovdor), SBM-4 Inc. (M/V Zarachensk) and the groups two Belgian holding companies, Sobelmar Antwerp N.V. and Sobelmar Shipping N.V. Sobelmars 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. Sobelmars financial advisor is Odinbrook Global Advisors LLC.