Indiana- based barge firm American Commercial Lines revealed Tuesday an arrangement with its loan providers to apply for Chapter 11 personal bankruptcy as component of a pre-packaged strategy to elevate brand-new resources and also lower its financial obligation.

The “Restructuring Support Agreement” will certainly infuse $200 million in brand-new resources right into business and also lower financial obligation by about $1 billion.

ACL and also particular relevant entities are anticipated to submit volunteer requests for reconstruction under Chapter 11 of the UNITED STATE Bankruptcy Code in the UNITED STATE Bankruptcy Court for the Southern District of Texas, Houston Division in the coming days, ACL claimed.

The firm anticipates to proceed procedures as regular throughout the court-supervised procedure and also, upon arising from Chapter 11 will certainly remain to offer clients with “competitive and reliable barge transportation services.” ACL claimed it likewise plans to pay providers completely under regular terms for products and also solutions offered on or after the declaring day.

American Commercial Barge Line, as it is frequently referred, is among the biggest and also most varied aquatic transport business in the United States’ inland river Jones Act profession, running a fleet of about 3,550 completely dry and also fluid mass barges along with 190 towboats, according to ACBL’s internet site.

Over the last 5 years, the firm has actually spent over one billion bucks in its fleet and also procedures.

ACL was gotten in 2010 by exclusive equity company Platinum Equity in a bargain valued at $800 million.

“ACL has built a decades-long industry leadership position through key investments in our fleet and a relentless focus on safe and reliable operations,” claimed Mark Knoy, President and alsoChief Executive Officer “Like many others in our industry, over the last four years ACL has been affected by challenging market conditions, the weather and the closure of key areas of the river system for extended periods of time. We have responded to these challenges by reducing costs and maintaining a high degree of financial discipline. The actions we are now taking will significantly reduce our outstanding debt and the associated costs to service that debt, freeing up our available resources to be fully devoted to competing in today’s market.”

In link with the RSA and also the anticipated Chapter 11 declaring, ACL has actually gotten a dedication for debtor-in-possession funding including a $640 million property based car loan and also a $50 million term car loan from particular of its existing loan providers. ACL plans to repay the car loan from its continuous procedures upon court authorization.

Milbank LLP is functioning as the ACL’s lawful advise, with Greenhill & &Co as its monetary expert and also Alvarez & & Marsal North America, LLC. as its restructuring expert.