Bankruptcy Judge Sean Lane said yesterday that he will confirm Genco Shipping & Trading’s plan to exit bankruptcy under the control of its senior creditors, rejecting arguments by shareholders that the proposal undervalues the dry bulk shipper’s assets, Reuters reported yesterday. Judge Lane said that he agreed with the company's estimate that its going concern value was less than $1.5 billion. A committee of shareholders had argued the value could be as high as $1.91 billion, calling Genco’s restructuring a ploy to hand over control to creditors and management. Under the plan, existing shareholders would receive just $30 million in warrants.
