US-based Sea Containers, owner of UK rail firm GNER, files for Chapter 11 bankruptcy protection
Sea Containers, owner of UK mainline rail service provider GNER, has filed for Chapter 11 bankruptcy protection, enabling the business to continue functioning under its current directorship.
Sea Containers has divested its sea-faring portfolio over the past year but retains its UK passenger rail company GNER. The Department for Transport (DfT) has trounced any rumours of taking control of the operation.
A DfT spokesperson told ABTN: "Sea Containers has a contract with us to operate the service. So filing for Chapter 11 is a matter entirely for them to deal with. Nothing will happen to GNER as a result of Chapter 11 so in this period there will be no involvement from us."
Sea Containers is in the midst of divestment and is continuing with its restructuring plan.
President and Chief Executive Officer Bob Mackenzie said: ”We are optimistic about the success of our restructuring programme and our ability to reach agreements with creditors. The prime reason for seeking protection is to prevent any individual creditor from taking action on its own, which would be against the interests of Sea Containers and the majority of creditors.
”The Chapter 11 process is very different from Administration in the U.K., because the directors remain in charge. We continue with our business strategy and for our key operating units it will be ”business as usual”. Chapter 11 will allow us the flexibility and the time needed to implement our reorganization plan and to move Sea Containers onto a sustainable financial footing.”
UPDATED REACTION:
Spokesperson Adrian Flook confirmed that GNER would emerge as one of two businesses Sea Containers would focus on. ”GNER is not going to be part of the divestment programme,” he told ABTN.
”We are concentrating on this side of the business and Chapter 11 will not affect it in any single way. Chapter 11 buys us the flexibility and time needed to continue with the financial restructure.”