Ultrapetrol (Bahamas) Ltd., the owner of one of the largest shipping fleets in South America, has sailed through bankruptcy court after spending just over a month in chapter 11, the Wall Street Journal reported today. Bankruptcy Judge Robert D. Drain signed off on Ultrapetrol’s chapter 11 plan, which its creditors had already voted to approve. The company, which operates mainly in Argentina, Brazil and Paraguay blamed falling commodity prices — namely the concurrent downturns in soybean, oil and gas, and iron ore— for a liquidity squeeze that caused it to run afoul of its borrowing terms. Under the restructuring plan, Southern Cross subsidiary Sparrow Capital Investments Ltd. will acquire Ultrapetrol’s river business, with some 685 barges for $73 million. Proceeds from the sale of the river unit are earmarked for the holding company’s creditors and will be used to retire some $225 million in outstanding bond debt.
