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Bulk Invest files for bankruptcy as seven owners reject restructuring deal

Bulk Invest files for bankruptcy as seven owners reject restructuring deal
Bulk Invest, formerly Western Bulk, has filed for bankruptcy just weeks after it sold its chartering division to parent Kistefos, in an attempt to survive.

While Bulk Invest had sought a restructuring solution seven shipowners that had filed and injunction against the sale of WB Chartering to Kistefos also rejected its restructuring proposal.

“The final restructuring proposal presented to the shipowners included immediate cash payments to the shipowners, the continuance of the Bulk Invest group's charter parties at rates significantly above the current market, and an envisaged recapitalisation of the Company in the amount of approximately $40m,” Bulk Invest said in statement to Oslo Bors.

However, it commented that the same seven shipowners who filed against the sale of WB Chartering had “firmly rejected” the restructuring efforts of the company.

Bulk Invest said that after dialogue was no longer a basis to continue with restructuring efforts and there was no longer a basis for continued operation.

“As the assumption of a going concern cannot be upheld, the company will immediately file a petition for bankruptcy,” Bulk Invest stated.

“The board of directors of the company's subsidiary Bulk Shipowning IV AS has reached the same decision to file for bankruptcy, whereas the respective boards of  the company's remaining subsidiaries have decided to continue their restructuring efforts for the time being,” it added.

In light of the bankruptcy filing Bulk Invest has halted trading of its shares on Oslo Bors.