As published in Bloomberg Brief

Bankruptcy & Restructuring

03.26.12

Bill Rochelle’s Wire

Trailer Bridge Inc., a U.S.-flagged ocean and truck freight carrier, confirmed a pre-packaged reorganization plan last week, making the company’s sojourn in Chapter 11 slightly more than three months. 

The plan gives a new secured note for $65 million plus some of the new stock to secured noteholders owed $86.3 million, for a projected 75 percent recovery.

Unsecured creditors’, not including noteholders’ deficiency claims, total $4.5 million to $6.5 million.  They receive $3.5 million cash.  If they don’t realize an 85 percent recovery in cash, they also receive some of the new stock and warrants.  The projected recovery for unsecured creditors is 65 percent to 95 percent. 

If unsecured creditors receive 85 percent cash, existing shareholders take home 15 cents for each old share, or some of the new stock. 

The reorganized company is being financed with a $31 million credit, to be used in part to make payments under the plan.  The first version of reorganization plan was filed in January.

The Chapter 11 petition listed assets of $102.7 million against debt totaling $118.1 million.  In addition to $82.5 million in 9.25 percent senior secured notes, other liabilities included $10.3 million on a revolving credit and term loan with Wells Fargo NA serving as agent.

There is about $13.7 million owing on government-guaranteed bonds issued under the Merchant Marine Act, to be rolled over or paid off through the plan.

Trailer Bridge has two 736-foot barges along with five 403-foot “triplestack box carriers.”  It carries freight between Puerto Rico, the Dominican Republic and the U.S. mainland. 

The case is In re Trailer Bridge Inc., 11-08348, U.S. Bankruptcy Court, Middle District of Florida (Jacksonville).