Armada (Singapore) Pte, a shipping line that sought court protection in January, offered to pay some creditors 32.5 cents on the dollar over five years as it seeks to reorganise.
The company will also repay debt owed to some creditors completely as they become due, Armada said in a March 2 Singapore court filing.
The debt reorganisation plan, which still needs approval, didn't detail individual payments to the 66 creditors listed in the court document.
Armada sought court protection after 'massive defaults' by customers amid tumbling demand for commodity shipments.
More than a third of shipping companies worldwide may collapse this year as global trade dwindles and vessel prices drop, Seafin Pte, the Singapore- based ship-financier, said last month.
The shipping line proposed this restructuring so 'that the financial bleeding can be kept to a minimum', it said. The company will then strive to 'recoup more significant profits from other ongoing contracts and agreements'.
Armada had a net loss of US$523 million last year, compared with a profit of US$130.9 million in 2007, the filing said.
For the plan to be approved, Armada needs to win a majority among creditors representing 75 per cent of the value of the claims, according to the filing. The date for the vote is still to be set by KPMG Advisory Service Pte, the company's adviser.
The creditors include Deiulemar Compagnia Di Navigazione SpA, Transfield Shipping Inc, Kawasaki Kisen Kaisha Ltd, Mitsui OSK Lines Ltd and Pacific Bulk Shipping Ltd, according to the filing. Transfield ER Cape Ltd has already challenged Armada's bid for bankruptcy protection in New York.
The Baltic Dry Index, a benchmark measure of shipping costs for commodities, tumbled 92 per cent last year, the biggest plunge since at least 1986.
The global recession, a meltdown in financial markets and payment defaults has pushed at least four shipping companies worldwide to seek legal protections.
Atlas Shipping A/S, a Danish commodity carrier owing as much as US$500 million, asked for US bankruptcy protection in January. Odessa, Ukraine-based Industrial Carriers Inc and London-based Britannia Bulk have also turned to the courts.
The company will also repay debt owed to some creditors completely as they become due, Armada said in a March 2 Singapore court filing.
The debt reorganisation plan, which still needs approval, didn't detail individual payments to the 66 creditors listed in the court document.
Armada sought court protection after 'massive defaults' by customers amid tumbling demand for commodity shipments.
More than a third of shipping companies worldwide may collapse this year as global trade dwindles and vessel prices drop, Seafin Pte, the Singapore- based ship-financier, said last month.
The shipping line proposed this restructuring so 'that the financial bleeding can be kept to a minimum', it said. The company will then strive to 'recoup more significant profits from other ongoing contracts and agreements'.
Armada had a net loss of US$523 million last year, compared with a profit of US$130.9 million in 2007, the filing said.
For the plan to be approved, Armada needs to win a majority among creditors representing 75 per cent of the value of the claims, according to the filing. The date for the vote is still to be set by KPMG Advisory Service Pte, the company's adviser.
The creditors include Deiulemar Compagnia Di Navigazione SpA, Transfield Shipping Inc, Kawasaki Kisen Kaisha Ltd, Mitsui OSK Lines Ltd and Pacific Bulk Shipping Ltd, according to the filing. Transfield ER Cape Ltd has already challenged Armada's bid for bankruptcy protection in New York.
The Baltic Dry Index, a benchmark measure of shipping costs for commodities, tumbled 92 per cent last year, the biggest plunge since at least 1986.
The global recession, a meltdown in financial markets and payment defaults has pushed at least four shipping companies worldwide to seek legal protections.
Atlas Shipping A/S, a Danish commodity carrier owing as much as US$500 million, asked for US bankruptcy protection in January. Odessa, Ukraine-based Industrial Carriers Inc and London-based Britannia Bulk have also turned to the courts.