Excel Maritime is yet another big name which has found itself in hard financial times – as a result, the company has been forced to negotiate swingeing bankruptcy plans with lenders.
The new deal which reportedly overhauls the company’s ownership and relationship with its debt has been settled in court.
Much of the movement has been prompted by the fact that hedge fund firms have purchased Excel’s bank debt in the secondary market from traditional European lenders. So the debt has been purchased at a discount and is now converted into equity during a restructuring.
While not so positive for the previous executives, the move could be good for post-bankruptcy Excel as the company will now be left holding only around $300m of debt on its balance sheet. When one considers the previous almost $1bn of total debt when the company filed for Chapter 11, perhaps the move will give Excel a chance to shine once more. This is allied with the fact that Excel has reportedly nearly doubled its voyage revenue in recent months, from $9.6m in August to $17m in October.