By Mark Edward Nero
International Shipholding Corp., which is based in Alabama but has affiliates with a significant West Coast presence, announced July 31 that it and certain of its subsidiaries have filed petitions for relief under Chapter 11 in US Bankruptcy Court.
However, the company has stated that it currently intends to continue operating in the normal course of business without interruption.
Among ISC’s subsidiaries are Waterman Steamship Corp., a deep-sea ocean carrier operating direct service between US West Coast ports and Asian countries.
To facilitate the Chapter 11 process, the company has entered into a debtor-in-possession $16 million credit facility. The credit facility can be used to fund, among other things, the company’s working capital needs while in Chapter 11.
“Today, we took a critical step toward right-sizing the company’s balance sheet,” ISC President and CEO Erik Johnsen said in a prepared statement. “While the company is facing challenges with its debt and capital structure, we believe our core business segments are performing satisfactorily.”
The company has filed a series of first-day motions with the United States Bankruptcy Court to allow it to continue to operate in the ordinary course of business, including asking the court to approve, among other things, the payment of wages, salaries and other employee benefits during the Chapter 11 process as well as payments to certain vendors.
“During the Chapter 11 process, suppliers will be paid in full for all goods and services provided after the filing date as required by the Bankruptcy Code,” ISC said in a statement.
