World News
Judge Allows TMT Bankruptcy to Move Forward in U.S.
A Texas judge has agreed to let Taiwanese shipping company Today Makes Tomorrow (TMT) pursue Chapter 11 bankruptcy proceedings in the U.S. despite creditors' charges that the company filed its case in bad faith, legal news site Law360 reports.
U.S. District Judge Marvin Isgur ruled that 21 of the 23 companies associated with TMT that are seeking bankruptcy protection properly filed their petitions.
The judge also said he would consider TMT's request to use $54 million from frozen bank accounts if company founder Nobu Su uses shares in Vantage Drilling Co., said to be worth about $41 million, as collateral.
Two companies, TMT USA Shipmanagement LLC and F Elephant Corp., had insufficient assets or liabilities to file under Chapter 11, the judge ruled, but he said the other companies have the potential to be rehabilitated through the bankruptcy process.
Some of TMT's creditors, including Mega International Commercial Bank Co. Ltd., Shanghai Commercial & Savings Bank, Cathay United Bank, and Bank Sinopac, argue that the company "manufactured" jurisdiction for the bankruptcy case by creating its U.S. affiliate just 13 days before filing for bankruptcy.
They also say TMT should not be allowed to spend money because it may not be able to reorganise and survive the bankruptcy.
When a U.S. court ruled last month that TMT vessels should be allowed to pay bunker suppliers, Su said he wanted to keep the company afloat to make enough money to pay back all outstanding debts.
TMT owes a total of about $1.46 billion.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 624.50 | 1.00 | 732.00 | 8.50 |
| Rotterdam | 571.00 | 3.00 | 758.00 | 16.50 |
| Houston | 591.50 | 4.00 | 760.00 | 5.50 |
| Fujairah | 629.00 | 0.50 | 877.50 | 3.00 |
| Global 20 Ports Average | 637.00 | 0.00 | 819.00 | 3.00 |
| Global 4 Ports Average | 604.00 | 0.00 | 782.00 | 5.50 |
| Global Average Bunker Price | 688.00 | 2.50 | 879.00 | 1.00 |
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