GENERAL MARITIME SUCCESSFULLY COMPLETES FINANCIAL
RESTRUCTURING AND EMERGES FROM CHAPTER 11
Outstanding Debt Reduced by Approximately $600 Million and $175 Million in New Capital
Company Well Positioned for Long-Term Success as a Financially Stronger Global Enterprise
NEW YORK – May 17, 2012 – General Maritime Corporation (“General Maritime” or the “Company”) (OTC BB: GMRRQ) today announced that it has successfully completed its financial restructuring and has emerged from Chapter 11 of the United States Bankruptcy Code.
Through the restructuring process, General Maritime substantially deleveraged its balance sheet, positioning the reorganized Company to be a financially stronger global enterprise. General Maritime successfully reduced its outstanding debt by approximately $600 million and its cash interest expense by approximately $42 million annually. In addition, the Company received a new capital infusion of $175 million from investment entities affiliated with Oaktree Capital Management, L.P. (the “Oaktree Funds”).
Jeffrey D. Pribor, General Maritime’s Chief Financial Officer, said, “Today marks the successful completion of our financial restructuring and the start of a new chapter for our Company. With enhanced financial flexibility, we are moving forward as a stronger and more competitive company, better equipped to address the challenges of today’s tanker shipping market. General Maritime will continue to operate one of the world’s largest and most diverse fleets of tankers and is committed to safely and efficiently providing seaborne oil transportation services. I also thank our employees around the world, whose hard work and loyalty have been instrumental in enabling us to reach this achievement and who will be important contributors to our future success.”
Kramer Levin Naftalis & Frankel LLP is serving as the Company’s legal advisor, and Moelis & Company is serving as the Company’s financial advisor.
About General Maritime Corporation
General Maritime Corporation is a leading crude oil and products tanker company operating principally within the Atlantic basin, which includes ports in the Caribbean, South and Central America, the United States, West Africa, the Mediterranean, Europe, and the North Sea. General Maritime also currently operates tankers in other regions including the Black Sea and Far East. General Maritime owns a fully double-hull fleet of 29 tankers – seven VLCC, seven Aframax, twelve Suezmax, two Panamax, and one product tanker – with a total carrying capacity of approximately 5.0 million dwt. The Company controls tonnage totaling 5.1 million dwt, including the owned fleet and three chartered-in vessels.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and observations. Included among the factors that, in the Company’s view, could cause actual results to differ materially from the forward-looking statements contained in this press release are the following: whether the Company is able to generate sufficient cash flows to meet its liquidity needs, service its indebtedness and finance the ongoing obligations of its business as contemplated by the Plan, including the extent to which the Company's operating results may continue to be affected by weakness in market conditions and charter rates; the Company’s ability to maintain contracts that are critical to its operation, to obtain and maintain acceptable terms with its vendors, customers and service providers and to retain key executives, managers and employees following the Chapter 11 cases; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission
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Past Press Releases:
|May 3, 2012||General Maritime Announces Confirmation of Plan of Reorganization|
|March 27, 2012||General Maritime Announces Agreement with Official Committee of Unsecured Creditors and Other Creditors|
|March 1, 2012||General Maritime Disclosure Statement Approved by Court|
|February 17, 2012||General Maritime Changes Record Date for Rights Offering|
|February 1, 2012||General Maritime Files Plan of Reorganization and Disclosure Statement|
|November 17, 2011||General Maritime Reaches Agreement on a $175 Million new Equity Investment and an Agreement with a Steering Committee of Senior Lenders on Key Terms to Restructure Debt|