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Sea Containers seeks to borrow $176.5M to repay notes

Sea Containers seeks to borrow $176.5M to repay notes

Sea Containers Ltd. is seeking bankruptcy court approval to borrow $176.5 million (euro132.16 million) to stop foreclosure against one of the company's units.
Mariner LCD, Dune Capital LLC and Dune Capital LP have agreed to provide the Bermuda-based company, one of the world's largest marine-container operators, with a term loan of up to $151.5 million (euro113.44 million) and a $25 million (euro18.72 million) revolving credit facility.
In court papers filed Friday, Sea Containers said the term loan will be used to pay off $141 million (euro105.58 million) in notes held by Wachovia Capital Markets LLC and Ableco Finance LLC that are backed by the assets of Sea Containers SPC Ltd.
Sea Containers said the transaction will prevent foreclosure on SPC's assets. The noteholders have alleged default under the$141 million (euro105.58 million) debt agreement. Sea Containers disputes the claim.
The noteholders claim Bermuda-based SPC breached its responsibilities regarding foreign taxing authorities. Sea Containers said the alleged default spurred Wachovia and Ableco to speed up payment obligations under the notes. The noteholders have threatened to foreclose on the assets unless they're paid in full.
Sea Containers plans to use the $25 million (euro18.72 million) revolving loan for "additional liquidity" during its Chapter 11 case.
A hearing is scheduled June 26 in the U.S. Bankruptcy Court in Wilmington, Delaware.
Sea Containers filed for Chapter 11 protection on Oct. 15, while in the process of selling off assets to pay senior creditors. The company listed $1.6 billion (euro1.2 billion) in debt and $1.7 billion (euro1.27 billion) in assets in its bankruptcy petition.


Updated : 2021-10-24 04:54 GMT+08:00