Trailer Bridge files for Chapter 11 Bankruptcy

Chapter 11 bankruptcy in the U.S. allows a company to continue operating,
and offers protection from creditors.

Trailer Bridge announced they will continue to operate under Chapter 11

From The Journal of Commerce

Carrier maintains operations, gains DIP financing under Chapter 11

U.S.-Puerto Rico carrier Trailer Bridge filed for Chapter 11 bankruptcy reorganization on Wednesday, a day after failing to refinance $82.5 million in bond debt that became due Tuesday.

The company said it will continue operation and has an agreement for $15 million in debtor-in-possession financing. The financing, worked out with Global Hunter Securities, is subject to approval of the U.S. bankruptcy court in Jacksonville, Fla., where Trailer Bridge is headquartered.

Trailer Bridge told the Securities and Exchange Commission late Tuesday the company expected to file its quarterly report by Nov. 21, a week behind schedule. The company said it needed extra time because the company has been focused on its bond refinancing efforts.

The company said it views the Chapter 11 filing as “the quickest and most efficient way to restructure its balance sheet and ensure the long-term strength of its operations.” Trailer Bridge said it hopes to complete the reorganization by the end of the first quarter of 2012.

The bankruptcy reorganization, “if successfully implemented, will result in a revitalized company with a vastly improved and deleveraged balance sheet, “Co-CEOs William G. Gotimer Jr. and Mark A. Tanner said in a statement

Wells Fargo Bank last month granted any an extension to Nov. 14 on Trailer Bridge’s 9.25 percent senior secured bonds due Nov. 15.

In the carrier’s second quarter report Aug. 15, Trailer Bridge said it was “exploring a number or options that might involve the private or public lending market and may include an equity component, and that might result in a change of control.”

Trailer Bridge operates a container-barge service between Jacksonville, Fla., and Puerto Rico and the Dominican Republic. The company also operates motor carrier service in the 48 contiguous states.

Trailer Bridge receives delisting warning from NASDAQ

From the SEC filing of Trailer Bridge

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

On August 18, 2011, Trailer Bridge, Inc. (the “Company”) received a letter from The Nasdaq Stock Market (“Nasdaq”) stating that for the last 30 consecutive business days, the Company’s market value of publicly held shares was below the minimum $15,000,000 requirement for continued inclusion on The Nasdaq Global Market under Listing Rule 5450(b)(3)(C) (the “Rule”). This notification has no immediate effect on the listing of the Company’s common stock. The Rule defines “publicly held shares” as total shares outstanding, less any shares held directly or indirectly by officers, directors or a beneficial owner of more than 10% of the total outstanding shares.

In accordance with Listing Rule 5810(c)(3)(D), the Company has 180 calendar days, or until February 14, 2012, to regain compliance with the Rule. The Company will regain compliance if, at any time before February 14, 2012, the Company’s market value of publicly held shares is $15,000,000 or more for a minimum of 10 consecutive business days.

If the Company does not regain compliance with the Rule by February 14, 2012, Nasdaq will provide the Company with written notification that the Company’s common stock will be delisted from The Nasdaq Global Market. At that time, the Company may appeal the delisting determination to a Nasdaq Listings Qualifications Panel. Alternatively, Nasdaq may permit the Company to transfer its common stock to The Nasdaq Capital Market if it satisfies the requirements for continued listing on that market.

The Company will continue to monitor the market value of its publicly held common stock and consider various options available to it if its common stock does not trade at a level that is likely to regain compliance.