Lawyers for bankrupt Genco Shipping & Trading Ltd. yesterday insisted the dry bulk shipper is not being undervalued during the closing of a trial pitting the company against angry shareholders who wanted better treatment in the restructuring, Reuters reported yesterday. The four-day trial bankruptcy posed the question of how to value a shipping company. The answer will determine what is left for Genco shareholders after its lenders and other creditors are repaid. Financial advisers at Blackstone, which was retained by Genco to value the company, argued the shipper was worth between $1.36 billion and $1.44 billion based on the market value of its ships and other assets. Shareholders put the value at $1.91 billion based on financial performance and other factors. Since Genco's Chapter 11 filing in April, shareholders have found themselves at odds with the company and just about all its creditors. They are the only opponents to a restructuring that would reduce debt by $1.2 billion, split most of the company's equity among more senior creditors and give existing shareholders $30 million in warrants. Judge Sean Lane gave no indication how he may rule, but said he would issue a decision by July 2.
http://www.reuters.com/article/2014/06/24/genco-ship-trade-bankruptcy-t…
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