The TMT Group, a global shipping company, has sought bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code in a Houston court after failing to restructure roughly $1.46 billion in debt.
The TMT filing includes 23 related entities. The company – whose 17 vessels transport oil, vehicles, and other large cargo items – cites the downturn of the shipping industry and difficulties managing debt and operating expenses as the primary causes of its financial turmoil, the Wall Street Journal reports.
In the last several years, TMT expended significant resources to build up its large fleet and optimize its operating capacity. Prior to the market downturn in 2008, freight rates soared to unprecedented levels, prompting many shipping companies to take similar measures and begin building up fleets. However, after the market tanked and the shipping industry began to struggle, a declining volume in business forced TMT into debt and left it with limited cash flow to cover its ordinary business costs.
“The arrested vessels are currently laid up in multiple ports, losing income, and accruing crew fees, arrest fees, and other expenses, rather than generating funds that would inure to the benefit of the debtors’ estates, creditors, and defendants themselves,” the company said in court papers.
The company listed $1.52 billion in assets and $1.46 billion in liabilities, and has requested court permission to hire a restructuring specialist to help it navigate the bankruptcy process, according to Reuters.
TMT filed a separate lawsuit in bankruptcy court against 12 banks, materials companies, and shipping companies to protect its interests in those vessels, Reuters adds. The company is considering requesting a restraining order against shipping companies and banks to protect its ships while it seeks to recover them.
New Jersey’s Next Manufacturing Tax Credit: Stability Secured, Timing Matters
A Settled Regulatory Environment Enables Confident Capital Planning New Jersey’s new manufacturing incentive program, Next New Jersey Manufacturing Program, enters 2026 with something uncommon in economic development these days: policy stability. The statute is enacted, New Jersey Economic Development Authority’s (“NJEDA”) rules are adopted, and the application portal is open. With the election outcome settled, […]
When done successfully, industry roll-up acquisitions can dramatically grow and strengthen your business. In this post, we break down what an industry roll-up is, why companies pursue it, and what makes it an effective (and sometimes risky) business strategy. What Is an Industry Roll-Up Acquisition? In an industry roll-up acquisition of companies, a buyer acquires multiple companies […]
Genesis Mission: How the U.S. Government’s New AI Platform Will Reshape Corporate Innovation, Risk, and Competition
The federal government has launched one of the most ambitious scientific initiatives in decades, and it will redefine how companies develop technology, manage risk, and compete. The Genesis Mission, created by Executive Order and driven by the Department of Energy (“DOE”), is intended to accelerate scientific discovery through a national AI platform that links supercomputers, […]
Stablecoins and the GENIUS Act: How New Global Rules Are Reshaping Compliance
Stablecoins Leave the Grey Zone Stablecoins were supposed to be the “boring” part of crypto: digital dollars that just work. Yet for years they have lived in a regulatory no-man’s-land, classified one day as securities, the next as commodities, and sometimes as something regulators had not even named yet. That uncertainty is finally starting to […]
Don’t Overlook the Importance of Business License Management
If you operate a business without the proper license, you risk fines, insurance issues, reputational harm, and even business closure. Even innocent mistakes, like forgetting to renew a license, can have significant consequences, such as losing your lawsuit for payment of services that are unlicensed, which makes it imperative to have business license management procedures […]
Failing to Comply With NJ Rent Control Exemption May Prove Costly
What Developers Need to Know About New Jersey’s Rent Control Exemption Law to Ensure Entitlement to Exemption for Newly Constructed Multi-family Housing. A property owner in Jersey City is facing a $400 million federal class action lawsuit alleging that the landlord did not follow the procedural steps required to be eligible for exemption from local […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
