Trailer Bridge Inc. seems to be on track to emerge from Chapter 11 bankruptcy after a confirmation hearing scheduled for March 16.
During a brief hearing on the case Friday in U.S. Bankruptcy Court in Jacksonville, the company’s attorney praised the court for helping it move the case along.
Gardner Davis of Foley & Lardner in Jacksonville told U.S. Bankruptcy Judge Jerry Funk that Trailer Bridge appreciates his efforts to accommodate the company’s rapid timetable.
“Without the court’s support, we may be in quicksand,” Davis said.
“It’s only for you Gardner. I wouldn’t do that for anybody else,” Funk joked.
Trailer Bridge, a Jacksonville-based marine and truck freight company, filed for Chapter 11 in November to restructure its debt, particularly $82.5 million in senior notes that were coming due. With its creditors apparently supporting its reorganization plan, the company is expecting to emerge from bankruptcy around four months after filing.
“The federal courts are notoriously overloaded and a big question is always whether you can get hearing time to move the case forward,” Davis said after Friday’s hearing.
“Judge Funk and the court staff have done everything possible to maximize the value of the company and expedite a consensual resolution of the case,” he said.
Trailer Bridge’s co-CEOs William Gotimer and Mark Tanner said after the hearing that the court’s effort to move the case along has helped its business during the Chapter 11 process.
“That gives us a lot of credibility with our customers, vendors and employees,” Gotimer said.
Trailer Bridge, which provides shipping services between Jacksonville, Puerto Rico and the Dominican Republic, has been able to maintain its sailing schedules and serve customers as normal throughout the bankruptcy process, the CEOs said.
“We’re pleased with the support we’ve received from our customers, vendors and employees,” Gotimer said.
Trailer Bridge’s reorganization plan calls for the company to replace the $82.5 million in notes with $65 million in new notes, and to issue new stock to the noteholders representing a 91 percent stake in the company.
The remainder of the stock will be issued to unsecured creditors if they are not repaid 85 percent of their claims in cash. If those creditors do receive enough cash, the remaining stock will be distributed to current shareholders of the company.
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