Ultrapetrol completed a pre-packaged Chapter 11 bankruptcy which saw majority shareholder Sparrow Capital Management emerge with most of the company’s assests.
The offshore vessel owner said all the conditions under its plan of reorganisation approved by the US bankruptcy court “have been satisfied or otherwise waived in accordance with the terms of the plan.”
As a result, Ultrapetrol “no longer owns any operating businesses,” it said.
As reported by TradeWinds, Sparrow purchased the company’s river business subsidiaries for $73m. The proceeds from that sale, along with net proceeds from sale of Ultrapetrol’s ocean business and funds held in debt service, went to satisfy debt claims owed to International Finance Corporation, the OPEC Fund for International Development, and holders of company’s ship mortgage notes.
Sparrow, a subsidiary of private equity group Southern Cross, also bought the company’s offshore unit for $2.5m, which went to satisfy secured lenders in the company’s offshore business, along with $7.5m held in accounts of that unit.
