Mark Knoy, President and also Chief Executive Officer of American Commercial Lines: “Through this recapitalization process, we are creating an even stronger inland barge transportation leader.”
As anticipated, Jeffersonville, Ind., headquarteredAmerican Commercial Lines Inc (ACL), among America’s biggest barge transport firms, on Friday, willingly declared reconstruction under Chapter 11 of the UNITED STATE Bankruptcy Code in the UNITED STATE Bankruptcy Court for the Southern District of Texas, Houston Division.
As we reported previously, the business claims it has actually become part of a restructuring contract (RSA) with owners of a considerable bulk of its term finance lending institutions on a “pre-packaged” strategy to recapitalize business, lower the business’s financial obligation and also boost its liquidity. Under the regards to the RSA, ACL will certainly obtain $200 million in brand-new equity resources to sustain liquidity and also financial investments in business. In enhancement, the RSA attends to a decrease of financed financial obligation by around $1 billion.
“Because we already have the support of a substantial majority of our term loan lenders, we expect to move through this process very quickly,” stated President and also Chief Executive Officer of American Commercial Lines, Mark Knoy.
“In recent days,” Knoy proceeded, “we have reached out to many of our customers, vendors and other partners, and we appreciate the many expressions of support and confidence they have conveyed to us. I also want to thank our dedicated teammates for their continued hard work and focus on working safely. We look forward to continuing to provide the safest, most cost-effective and environmentally friendly barge transportation solutions.”
ACL has actually obtained a dedication for debtor-in-possession funding including a $640 million property based finance and also a $50 million term finance from specific of its existing lending institutions. Upon Court authorization, the brand-new funding and also cash money produced from the business’s continuous procedures will certainly be made use of to repay ACL’s existing asset-based finance and also to sustain business throughout the court-supervised procedure.
Court records and also extra details regarding the court-supervised procedure can be discovered at a web site supervised by the business’s cases representative, Prime Clerk, HERE
As component of its outreach to consumers, suppliers and also staff members, ACL has actually launched the Youtube video clip that can be seen listed below.
