VLCC British Progress, sister vessel to the British Purpose, image: Frontline
Windsor Petroleum Transport Corp (WPT), a Bermuda-based company that falls underneath International Tankers Corp and is 82.5 percent owned by Frontline Tankers has filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
WPT acts as agent for four separate shipowning companies consisting of Buckingham Shipping Plc, Caernarfon Shipping Plc, Sandringham Shipping Plc, Holyrood Shipping Plc. Each of these companies owns a 307,000 dwt VLCC on a fixed 20 year bareboat charter to BP.
WPT says in a statement that a restructuring agreement has been entered with their bondholders who hold over 70% of the company’s 7.84% secured notes in a principal amount of $188,590,000. Under this agreement, the bondholders have agreed to support a plan of reorganization that would convert claims on account of these notes for 100% of the equity in the reorganized company.
As of 14 July, the VLCC British Purpose is the only one of the four tankers still on charter however, and it has now been converted to a variable charter.
A gCaptain source notes, “This was a culmination of a nine month effort to make sure the bondholders would have cash and a company to go forward with. Frontline gets continued management and the Bondholders get a low cost way to play the VL market… wins all around.”
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