Wednesday, January 07, 2009
Wednesday, 07 January 2009
Armada (Singapore) Pte Ltd. yesterday announced it has been granted leave to convene a creditors’ meeting to vote on a proposed Scheme of Arrangement pursuant to Section 210 of the Companies Act of the Republic of Singapore that will protect its assets and maximize funds available to creditors as it restructures its business operations. ASPL, which is registered to do business in New York, is filing a Chapter 15 petition with the United States Courts for the Southern District of New York, seeking recognition of the Singapore 210 proceeding and imposition of the automatic stay to protect ASPL’s assets while it restructures.
ASPL, a privately owned holding company incorporated and based in Singapore, is one of the world's leading dry bulk shipping companies. It provides ocean transportation services to a variety of major raw material and commodity shippers and consumers located throughout the globe.
“We have achieved the best possible solution during this global economic crisis to guarantee our return to financial health,” said Tommy Jensen Rathleff, Managing Director of Armada (Singapore). “We expect to create a viable and sensible plan that will provide a fundamentally sound groundwork for our business activities on a long-term basis.”
“Equally important, the plan will identify concrete steps for maximizing returns to ASPL’s creditors,” said Rathleff. “To be sure, justifying the confidence of our creditors is top priority for ASPL as we identify and implement solutions to the challenges that now face our industry.”
Like many leading businesses in their respective industries, ASPL has faced serious challenges during the current economic downturn. In particular, a global slowdown in the dry bulk shipping market has led to defaults by third parties on charter hires, freights, and other contractual obligations owed to ASPL. As a result, ASPL’s management determined that the company will not be able to fully meet its own near-term contractual obligations, making it necessary to seek temporary protection.
A Scheme of Arrangement under Section 210 is markedly different from the dissolution proceedings initiated by several other dry bulk operators in recent weeks. Instead of simply liquidating, a Section 210 restructuring provides ASPL with the time needed to stabilize its liquidity position, strengthen its balance sheet, and recover third-party debts – while allowing the company to continue providing transportation services to its customers around the world.
“It’s additionally important that, as a result of this restructuring, we will still be the captains of our own ship,” said Rathleff. “There will be no outside overseers directing how we conduct our business and serve our clients.”
The Company will immediately begin working with its creditors in accordance with the framework provided under Section 210 of the Singapore Companies Act and in accordance with Chapter 15 of the United States.
As adapted from Armada Group