Contact Us
212-594-5000

Shipping

Industry Overview

The coronavirus pandemic has impacted global shipping. The containment measures put into place by governmental authorities all around the world have brought about lower global economic growth and, in turn, lower demand for goods to be shipped. Moody’s Investors Service has a negative outlook on the global shipping industry for the 12 to 18 months following the pandemic.

How We Can Help

Our familiarity with the demands of complex reorganizations and our commitment to containing legal costs make our firm especially well-suited for representing struggling companies through difficult times. Keeping our billing rates 25% below market, our firm represents companies that are considering whether to pursue a restructuring, including in or out of Chapter 11. Because we have no retainer clients or institutional relationships, our law firm can act independently in the interests of the debtor and the estate without the conflicts or complications presented by preexisting affiliations with lenders or parties in interest.

For example, the Togut Firm served as counsel to Toisa Limited and its affiliates, U.K.-based companies that owned a diversified international shipping business with a fleet consisting of 26 offshore oil service vessels, 13 tankers, and seven bulkers. The Togut Firm successfully advised the debtors in mediation sessions with 20 of their secured lenders involving over $1 billion in secured debt, which resulted in an agreed-upon pathway to confirm a Chapter 11 plan. The Togut Firm successfully obtained bankruptcy court approval for, and assisted in the closing of, the sales of the debtors’ fleet of 20 oceangoing vessels, 26 offshore vessels, and construction contracts for six vessels, for total proceeds exceeding $550 million.

Eletson Holdings

The Togut Firm served first as counsel to petitioning creditors holding more than $330 million in outstanding unsecured notes in successfully prosecuting involuntary petitions against the debtors, an international shipping company. Then, during the highly contention chapter 11 cases, the Togut Firm assisted the petitioning creditors to obtain confirmation of their chapter 11 plan of reorganization over the debtors’ proposed plan following a multi-day trial. The Togut Firm now represents the reorganized debtor in implementing the plan abroad, including by obtaining bankruptcy court orders compelling various insider to implement the plan in foreign jurisdictions and seeking recognition of the chapter 11 plan in foreign jurisdictions, including Liberia and Greece.