Court confirms Hornblower restructuring plan

Hornblower Group, which filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas in February, reports that the court has now confirmed the company’s plan of reorganization. With court confirmation of the Hornblower restructuring plan, the company, which is a major player in the U.S. ferry market, says that it “has used this process to position the business for future success with a more focused portfolio, introduce new majority ownership and strengthen its balance sheet for greater financial flexibility.”

“With the court’s approval of the plan, we are closer to emerging as a stronger company, with a more focused portfolio and additional financial flexibility to fuel our growth,” said Hornblower CEO Kevin Rabbitt. “We look forward to completing this process and continuing to build on our position as a global leader in world-class experiences and transportation.”

“Throughout this process, we have continued to provide our land- and water-based travel experiences to guests around the world and bring commuters reliable transportation service,” Rabbitt added. “This was largely due to the outstanding dedication and unwavering efforts of our entire Hornblower crew. We are also grateful to our financial stakeholders as well as our vendors, suppliers and business and government agency partners and our loyal employees for their support and continued partnership as we enter Hornblower’s next phase of growth.”

Under the terms of the Hornblower restructuring plan, after emerging from Chaper 11:

• Hornblower’s majority ownership will transition to funds managed by Strategic Value Partners, LLC (SVP) and its affiliates and Crestview Partners will retain a significant minority position in the company,
• Crestview will become the sole owner of Journey Beyond, a stand-alone operating unit of Hornblower operating in Australia.
• The company will have reduced its total debt by approximately $720 million and substantially increased its liquidity.

David Geenberg, co-head of the North American investment team at Strategic Value Partners, said, “We couldn’t be more excited to embark on this next chapter with Hornblower Group, a premiere leader in travel experiences and transportation. We are looking forward to collaborating with the leadership team to support the company’s strong operating staff, excellent service, and exceptional guest experiences to usher in Hornblower’s next era of growth and success.”

“We are enthusiastic about Hornblower’s next growth chapter,” said Brian Cassidy, president of Crestview. “As we lead towards emergence, we look forward to building on the strong foundation that has been established, propelling Hornblower to further become a leader in experiences and transportation.”