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.
The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities
On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]
Common Legal Mistakes NYC and New Jersey Business Owners Make
Operating a business in the New Jersey and New York City metropolitan region offers incredible opportunities, but it also requires navigating a dense and highly regulated legal environment. From entity formation to regulatory compliance, seemingly minor legal oversights can expose business owners to significant risk. In our work with businesses throughout the region, our attorneys […]
High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]
Corporate Governance Reviews: A Practical Guide for New Jersey Companies
Every New Jersey company should periodically evaluate its governance framework. Strong corporate governance protects directors and officers, builds investor confidence, reduces litigation exposure, and positions a company for sustainable growth. The first quarter of the year is a great time to evaluate your corporate governance practices and perform any routine maintenance needed to keep that […]
What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights
Being served with a lawsuit is one of the most stressful legal events a business or individual can face. Whether the claim involves a contract dispute, an employment matter, an intellectual property issue, or another legal challenge, the actions you take in the first few days can significantly shape the outcome of your case. Acting […]
Will 2026 Be a Banner Year for SPACs? Understanding the Risks and Opportunities
Special Purpose Acquisition Companies (SPACs) continue to gain momentum as we move through 2026. After enduring a significant contraction following the 2021 boom and the regulatory scrutiny that followed, SPAC activity rebounded sharply in 2025 and now carries forward into 2026 with real momentum. The SPAC resurgence reflects broader improvements in both market conditions and the […]
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!
