Seatrade Maritime is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

BLT files for bankruptcy protection in US

BLT files for bankruptcy protection in US
Jakarta: Indonesia-based Berlian Laju Tanker (BLT) has filed for Chapter 15 creditor protection in a US bankruptcy court on Tuesday, after it came to an agreement with creditors on 14 March to restructure its $1.9bn debt.

Under the US bankruptcy laws, Chapter 15 grants a foreign company protection from creditors seeking to seize its assets in the country.

Once the world's third largest chemical tanker shipping firm, BLT's vessels are mortgaged to a consortium of banks as security under a $685m loan agreement.

The Jakarta-based company averted bankruptcy about two weeks ago when it claimed a favourable vote from both secured and unsecured creditors for the restructuring plan to proceed.

The beleaguered shipowner had to freeze approximately $418m of principal repayments back in January 2012, out of total outstanding debts of about $1.9bn.