Strained Bedfellows

If things were not bad enough, U.S. Shipping Partners’ joint venture with Blackstone to build five U.S. flag product carriers is in the process of unraveling as the latter tries to protect its investment. Under the various operative documents, Blackstone has declared a Board Reduction Event and a Manager Termination Event, the effect of which would be to remove USSLP’s subsidiaries as the managing member of the joint venture and the manager of the vessels under construction. Adding to the woes, the lenders to the joint venture gave notice of default under the credit facility and their intention to foreclose

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