Tough Times For International Shipholding Corp -- Bankruptcy Filed
The company International Shipholding Corp. reportedly filed for bankruptcy protection under Chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of New York on Monday in the wake of being unable to sell off its resources at present to meet the demands of the lenders since the past one year. The company has files in for $16 million in bankruptcy under the umbrella of restructuring under government’s protection. The company was founded in 1947 and it went public in 1979.
The company has lost about $8.4 million in the first quarter of the year 2016. Its results for the previous year were deep in loss as well since the company lost $180 million in 2015 alone.
Through its various deals and businesses that the company sold off, it brought down its debt from $243 million in 2014 to $117 million in the first quarter of 2016. Still, the company is not getting enough money to pay the debts or to operate the company in its finest condition.
The President and Chief Executive of the company, Erik L. Johnsen said, “Today, we took a critical step toward right-sizing the Company's balance sheet. While the company is facing challenges with its debt and capital structure, we believe our core business segments are performing satisfactorily. During the Chapter 11 process we look forward to continuing to provide our customers the same high quality, reliable shipping services they've come to consistently expect from us.”
Heavy negotiations are going on with the lenders for the repayment of the debts that have been crossing the limits of time.
International shipping corp. has even sold out a few businesses of its own, its dry bulk carrying unit being one of them in a suppository to reduce its debts but the money isn’t worth clearing off the debts that are mounting on.
The International Shipping Corp. has assets worth $305 million at present. Its main businesses are transporting vehicles, container vessels, multipurpose vessels, rail-ferry business and the Jones Act trade which has the government lining for territorial waters.
Another of its subsidiary, Waterman Steamship Corp. also filed for bankruptcy on Sunday.