Partner Madlyn Primoff Discusses Restructuring Options for Shipping Companies in Mergers & Acquisitions

Mergers & Acquisitions reports that two Athens-based shipping companies are beginning the process of restructuring their loans. Excel Maritime Carriers Inc. and Seanergy Maritime Holdings Corp. are just two of many shipping companies facing financial difficulties brought on by a rise in competition and a drop in shipping rates due to vessel oversupply. Discussions with the companies’ lenders on extending the maturity of the loans or finding another solution are underway.

According to Kaye Scholer Bankruptcy & Restructuring Partner Madlyn Primoff, “If you’re a lender and you’re coming up on the maturity date then you’ve got to consider your range of alternatives.” Options include finding another party to buy the lender out, extending the loans or enforcing remedies. In addition, Primoff notes that, “There have been situations where the debt has traded at a discount, so there’s room for hedge funds and private equity funds to step in and right size the capital structure.”