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.
IP Infringement: What Steps Can You Take If You're Affected?
IP infringement occurs when someone uses your intellectual property without your permission or beyond the scope of the permission you granted. Common examples of IP infringement include copying a product’s patented features or using a trademarked logo in a way that is likely to confuse consumers about the source or affiliation of goods or services. […]
Public Allegations, Unfinished Investigation: What New Jersey Businesses Should Do Next
When facing public allegations of wrongdoing, companies should not let the speed of the public conversation dictate the speed of an investigation. An investigation designed to confirm a preferred narrative rather than establish the facts can create serious problems later, particularly if litigation, regulatory scrutiny, or employment claims follow. Key Takeaways When public allegations surface […]
BESS Interconnection: Managing Grid, Cost, and Schedule Risk
For battery energy storage system (BESS) developers, securing equipment and site control is only part of the development equation. A project must also connect to the electric grid, and increasingly, BESS interconnection is one of the biggest sources of schedule, cost, and contractual risk. Key Takeaways This article is Part 3 of our Battery Storage […]
Navigating Director and Officer Liability in Times of Financial Distress
Director and officer liability increases sharply when a company is in financial distress. Decisions that would draw little attention in a healthy business can later be challenged by creditors, shareholders, bankruptcy trustees, and regulators as breaches of fiduciary duty, fraudulent transfers, or oversight failures. Understanding where that exposure comes from, and how to manage it, […]
Before You Buy: Managing Real Estate and Permitting Risk for BESS Projects in New York and New Jersey
For developers pursuing battery energy storage system (BESS) projects, finding the right property is only the beginning. BESS site selection is as much a legal and transactional exercise as a real estate decision, with risk analysis central to the project’s ultimate success. Key Takeaways The core questions for BESS site selection in New York and […]
What Business Owners Get Wrong Before Meeting a Litigation Attorney
What should you expect when meeting a litigation attorney about a business dispute? You should expect to describe the dispute in your own words, hand over the most important documents, flag any deadlines or immediate threats, and leave with a clearer picture of the problem, what information is still needed, and the likely next steps. […]
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!
