Primorsk International Shipping, which operates ice-class tankers, has filed for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court in New York.
The filing comes after the company was unable to settle with creditors for loans it took 10 years ago to expand its tanker fleet.
Primorsk was trying to enter into a debt-for-equity swap deal with some Norwegian bondholders, who are seeking $262.2 million in loans, the Wall Street Journal reported.
Primorsk is owned by Apington Investments. The company’s Singapore and Nakhodka subsidiaries are not party to the filing, and did not file for bankruptcy.
Primorsk International operates a fleet of nine ice-classed oil tankers operating in Russian, Canada, U.S. and European waters for charterers that include BP, Chevron, Lukoil and other oil companies, according to The Wall Street Journal.
Writing by Nadeem (c) gCaptain