Ultrapetrol (Bahamas) Ltd., owner of one of the largest shipping businesses in South America, received a judge’s permission to embark on a rapid chapter 11 that would result in an affiliate of Latin American private-equity firm Southern Cross Group acquiring most of its business, the Wall Street Journal reported on Saturday. Bankruptcy Judge Robert Drain on Friday authorized Ultrapetrol to continue paying employees’ wages and business expenses after the company filed for chapter 11 protection earlier this week. Judge Drain is scheduled to consider approving Ultrapetrol’s reorganization plan, which creditors have already voted on, next month. Under the plan, Southern Cross subsidiary Sparrow Capital Investments Ltd. would acquire Ultrapetrol’s so-called river-supply business for $73 million. Proceeds would be paid out to Ultrapetrol’s creditors and outstanding bond debt would be retired, court papers say. Read more. (Subscription required.)
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