Tanker owner Eletson Holdings has emerged from bankruptcy protection in New York with a restructuring plan backstopped by an affiliate of Canadian hedge fund Murchinson.
The restructured company said it exited the Chapter 11 bankruptcy process with “new leadership, new financial resources and no debt”.
The announcement comes more than 20 months after creditors pushed Greece’s Eletson, an owner of MR product tankers, into a Chapter 7 liquidation case. A federal judge later converted it into a Chapter 11 reorganisation.
Eletson said one of those creditors, Murchinson-backed Pach Shemen, proposed and backstopped the reorganisation plan that allowed it to exit the US Bankruptcy Court for the Southern District of New York.
Murchinson is a Toronto hedge fund backed by Marc Bistricer that, in shipping, has been known to be a provider of rescue financing.
“On behalf of Eletson’s creditors, we are pleased to have participated in delivering this outcome and look forward to continuing to support and guide the company during this next chapter,” Pach Shemen manager Mark Lichtenstein said in the announcement.
The plan garnered the support of the majority of Eletson’s creditors and was approved by the court in October.
Adam Spears has been appointed the shipowner’s new chief executive.
“Today marks an important milestone for Eletson and its subsidiaries,” he said.
“After successfully completing the Chapter 11 process, the company is now in a strengthened financial position and debt-free. We look forward to being able to focus on the next phase of Eletson’s evolution by enhancing operations and driving growth.”
The new Eletson comprises Spears and independent directors Leonard Hoskinson and Timothy Matthews.
Eletson was founded in 1966 by Vassilis G Hadjieleftheriadis with his two sons and two sons-in-law.
It bought its first tanker in 1969 and was the first to place high-yield shipping bonds in the US in the early 1990s.
