Nautilus 16 hit Chapter 11

Andreas Papathomas-led Nautilus Holdings and several affiliates filed for Chapter 11 bankruptcy protection for a fleet of 16 containerships.

The company, which is under the umbrella of by Papathomas’ Synergy Management Services of Cyprus, says in an announcement provided to TradeWinds that the restructuring effort is aimed at providing financial flexibility to Nautilus.

The filing in the US Bankruptcy Court in White Plains, New York, cover containerships ranging in size from 2,500-teu to 7,000-teu and that are chartered to an array of liner operators including Yang Ming of Taiwan and France’s CMA CGM. The restructuring is not expected to impact operations of the ships or the company’s ability to serve charterers, Nautilus said.

James Mesterharm, of advisory firm Alix Partners, has been named chief restructuring officer for Nautilus.

Fleet to be placed under Chapter 11

2,480-teu Corcovado (built 2003)

2,820-teu ANL Kardinia (built 2005)

2,820-teu Dahlia (built 2006)

2,820-teu Camellia (built 2006)

2,820-teu Violet (built 2006)

2,850-teu Ital Onesta (built 2007)

4,250-teu YM Antwerp (built 2008)

4,250-teu YM Busan (built 2009)

4,250-teu YM Oakland (built 2009)

4,250-teu YM Keelung (built 2009)

4,710-teu Columbia (built 2003)

5,450-teu Venezia (built 2001)

6,350-teu Rotterdam (built 2008)

6,350-teu Hamburg (built 2009)

6,970-teu Texas (built 2009)

6,970-teu Washington (built 2009)

“We intend to use the financial restructuring process in the United States with the goal to significantly strengthen Nautilus’ balance sheet and look forward to engaging with the company’s lenders to establish the appropriate capital structure for the company in light of current market conditions,” he said.

Mesterharm said Nautilus is confident that Chapter 11 restructuring is the best way to achieve those goals efficiently and without an impact to operations.

“Nautilus’ operations are strong.  We look forward to continuing to work with charter customers around the world and to providing them exceptional service,” he said.

Nautilus says it has already received a commitment for up to $5m in debtor-in-possession financing.

The petition identifies Nautilus as holding between $100m to $500m in assets and the same range in liabilities.

New York law firm Skadden, Arps, Slate, Meagher & Flom is representing Nautilus in the bankruptcy case.