Genco extends offer

Bulker owner gives creditors more time to sign up for $100m share sale as part of Chapter 11 plan.

US-listed bulker owner Genco Shipping & Trading has given creditors more time to sign up for a rights offering that forms part of its bankruptcy restructuring.

The Peter Georgiopoulos-led company, which filed for Chapter 11 reorganisation in April, said debt holders now have until 18 June to apply, against 29 May previously.

The $100m share sale for an 8.7% stake in the new Genco gives lenders in its 2007 credit facility access to 80% of the rights on offer, and notes holders will have access to the remainder.

Genco has said the plan will wipe out all current equity interests in the company, with shareholders receiving seven year warrants for at most 6% of the equity in the reorganised company.

The owner’s largest credit facility will convert into an 81.1% stake.

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