A major settlement with Hyundai Heavy Industries has set the scene for Gregory Callimanopulos-linked Toisa to work towards an exit from Chapter 11 bankruptcy protection.
It will do so without Callimanopulos in the chairman’s chair after a term sheet with creditors agreed to put a new three-man board in place with a chief restructuring officer overseeing the process.
The tanker and offshore shipowner filed Chapter 11 papers at the start of last year and in September entered a mediation process in London.
After a $45m settlement with Hyundai was struck in December, the two sides have come closer together, agreeing to a term sheet and to work towards a restructuring agreement.
Court documents note the "very considerable contribution" made by the shareholder in reaching a deal with Hyundai which is in the best interests of the estate.
In return, creditors are no longer contesting a $20m dividend payment made to Toisa shareholders in 2016, noting further objections would be costly and highly litigious.
A term sheet now put before the US bankruptcy court says the parties have agreed the seven-strong Toisa board be re-constituted.
Independent directors Len Hoskinson, Scott Vogel and Alan Jacobs have been drafted, replacing Callimanopulos, his deputy chairman Robert Hennebry, Maria Anastasopoulou-Votsi, Antonis Varvaros, Richard Baldwin, Basil Garetsos, and David Doyle.
The term sheet also confirms Jonathan ‘Joff’ Mitchell as chief restructuring officer and, among other details, an agreement not to oppose the purchase of a G550 aircraft, which the shareholders requested in December.
“The debtors believe that entry into the term sheet is in the best interest of their estates because it is an important step required before the Debtors can negotiate an exit from Chapter 11,” a court filing said.
“Once the term sheet is approved, the debtors will formulate, in good faith and subject to Bankruptcy Court approval, a Chapter 11 plan on terms supported by its key creditors.”
Toisa filed for Chapter 11 with debts of more than $1bn in January 2016.
The Piraeus-headquartered company is an affiliate of Callimanopulos' better known Sealion Shipping and Marine Management Services.
