International Shipholding Corporation Update (8/5)

 

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Seafarers-contracted International Shipholding Corporation (ISHC) and some of its subsidiaries have filed for Chapter 11 bankruptcy in New York. As noted in a letter from the union to SIU members aboard ISHC’s vessels operated by Waterman, Central Gulf and Sulphur Carriers, respectively, “We are in close contact with the company every day and will take every reasonable step to help them move forward with a successful restructuring that maintains SIU jobs.”

 

The letter from SIU Vice President Contracts George Tricker also reads in part, “While there is nothing desirable about any form of bankruptcy, a Chapter 11 procedure very clearly means the company is trying to make a go of it, and we know from U.S. maritime history that such reorganizations have worked. It may initially sound strange under the circumstances, but for now it is business as usual aboard the ships… On that note, it is critical that you remain aboard the company’s vessels and continue to handle your respective jobs with ongoing professionalism. I am cautiously optimistic about the company’s future, but their ability to reorganize and move forward depends in large part on reliable shipboard manpower.”

 

In a letter to its customers, ISHC noted, “The company’s Chapter 11 filing does not mean that our company is going out of business. Rather, this filing is a critical step on our company’s path

towards an orderly financial restructuring with our lenders and shareholders. Throughout the

Chapter 11 process, our company will continue conducting normal business operations. On

behalf of all of our employees operating today in the United States and abroad, we also want to

take this opportunity to thank you for staying the course and believing in our company.”

 

ISHC also posted a news release in which Erik L. Johnsen, president and CEO, commented, “Today, we took a critical step toward right-sizing the company’s balance sheet. While the company is facing challenges with its debt and capital structure, we believe our core business segments are performing satisfactorily. During the Chapter 11 process we look forward to continuing to provide our customers the same high quality, reliable shipping services they’ve come to consistently expect from us.”

 

There are several related links on the company’s home page: http://www.intship.com/

 

To access the news release, click HERE

 

To access the customer letter (in PDF format), click HERE

 

To access a letter to vendors (also in PDF format), click HERE

 

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