Stalking Horse Not Wanted: U.S. Shipping Rebuffs Bid, But Why?

If you were a company with increasing year-over-year losses in the midst of a recession, would you choose to emerge from bankruptcy with 9.1x leverage or with 3x leverage? Might not sound like much of a choice, but that's because you're not U.S. Shipping Partners, the long-haul marine transportation business once bestowed with the cursed Buyouts Deal of the Year Award. The company, which filed for bankruptcy in May, has actually chosen the 9.1x leverage option. Former owner Sterling Investment Partners lost its entire $40 million equity investment and has removed itself from the situation entirely.

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