SOURCE: U.S. Shipping Partners

November 13, 2009 14:39 ET

U.S. Shipping Partners Successfully Exits From Chapter 11 With Less Debt, Improved Liquidity and a Sustainable Capital Structure

Company to Be Renamed U.S. Shipping Corp

EDISON, NJ--(Marketwire - November 13, 2009) - U.S. Shipping Corp (the "Company"), formerly known as U.S. Shipping Partners L.P., announced today it has emerged from Chapter 11 bankruptcy protection pursuant to the Third Plan of Reorganization (the "Plan") approved by the U.S. Bankruptcy Court for the Southern District of New York on October 1, 2009.

"We are very pleased to be out of Chapter 11," said Joseph Gehegan, President and Chief Executive Officer. "We accomplished the goals we set out at the beginning of this process: maintain business as usual through the reorganization, reduce our debt and emerge in an expedited manner with a sustainable capital structure."

"I would like to extend my gratitude to our customers and suppliers for their trust, loyalty and confidence during the reorganization and to our employees, both ashore and afloat, for their hard work and dedication," said Gehegan. "We would also like to thank our creditors for their confidence in us and in the future of the Company."

"With this reorganization behind us, U.S. Shipping Corp is poised to capitalize on its position as a leader in its industry," said Mr. Gehegan. "We are committed to continue the highest standards of operation and care for health, safety and the environment, and to deliver the superior service for which U.S. Shipping is known."

Under the Plan as implemented, $100 million of second lien debt was extinguished in exchange for 45% of the equity of U.S. Shipping Corp and the principal amount of the first lien debt was reduced to $300 million at an improved rate of interest. The holders of the first lien debt received 45% of the equity of the Company, and 10% of the equity has been set aside for management. The existing and outstanding common units, subordinated units and general partnership interests of the U.S. Shipping Partners L.P. were cancelled and receive no recovery.

As announced previously, in conjunction with its emergence from Chapter 11, U.S. Shipping Corp appointed Joseph Gehegan as President and Chief Executive Officer, Al Bergeron as Vice President -- Chief Financial Officer and Jeffrey Miller as Vice President -- Chartering. Pursuant to the Plan, a new Board of Directors was appointed.

About U.S. Shipping Corp

U.S. Shipping Corp is a leading provider of long-haul marine transportation services for refined petroleum, petrochemical and commodity chemical products in the U.S. domestic coastwise trade. The Company's existing fleet consists of twelve tank vessels: four integrated tug barge units; one product tanker; three chemical parcel tankers and four ATBs.

For additional information about U.S. Shipping Corp, please visit

Contact Information

  • Contact Information:
    Joseph Gehegan
    President and Chief Operating Officer
    U.S. Shipping Corp