US Shipping Partners’ bankruptcy reorganization plan confirmed

US Shipping Partners’ bankruptcy plan confirmed

EDISON, N.J. — Petroleum and chemical shipper U.S. Shipping Partners LP said Thursday that a New York bankruptcy court has confirmed its reorganization plan.

The company will emerge from Chapter 11 protection in roughly 10 to 20 days. It will be renamed U.S. Shipping Corp. and will have a new board of directors.

Joseph Gehegan will become president and chief executive officer. Ronald L. O’Kelley’s tenure as CEO will end at that time.

The restructuring plan calls for $100 million of second lien debt to be slashed in exchange for 50 percent of the equity of the reorganized company. The plan reduces the first lien debt, including swaps, by roughly $55 million and reinstates the remaining $300 million at a better interest rate.

The holders of the first lien debt will also receive 50 percent of the equity of the reorganized company.

Existing shares will be wiped out.