20355 Hamburg, de
+49 (40) 369757-125
König & Cie. Completes Restructuring and Settlement of Contingent Liabilities
- New investors assume majority ownership stake in the company
- Management remains a minority shareholder
- Company focuses on shipping, offshore and hard asset leasing
König & Cie. ("company") has reached an agreement with creditors to settle outstanding debt and contingent liabilities. With the help of two USbased financial investors, Delos Shipping LLC, Dallas, TX and Tennenbaum Capital Partners, LLC, Santa Monica, CA, the restructuring process has been successfully concluded and enables König & Cie. to continue to operate. As part of the transaction, shareholders Tobias König and Jens Mahnke sold 80% of the company to the new US investors and they will continue to serve as managing directors of the company. The capital investment was used to settle, restructure or waive all of the company's liabilities. The transaction was originated and advised by Imperial Capital, LLC, New York, NY.
As a consequence of the financial crisis in 2008 and the subsequent collapse of the shipping and KG markets, König & Cie. entered into a moratorium with its creditors and commenced a restructuring process. The company changed its business model from a large retail-focused KG house to a small investment boutique and asset manager focused on the shipping sector and its investments including, König & Cie. Treuhand GmbH, Scorship Navigation GmbH & Co. KG, and Marenave Schiffahrts AG. During the process, the company reduced its headcount from 140 to approximately 60, and its annual overhead expenses by approximately € 10 M.
König & Cie. has a unique international network in the shipping and offshore sector and has been a partner to successful international shipping companies for many years. As such, König & Cie. was identified by Delos and Tennenbaum as an ideal platform for further investments in the shipping sector which offers attractive opportunities for investors focused on distressed assets.
In the future, König & Cie. will continue to manage the assets of the closed end funds which were issued in previous years. Additionally, König & Cie. will focus on cultivating relationships with institutional investors and expanding its presence in the shipping sector. The close cooperation with Marenave Schiffahrts AG will continue and Tobias König will remain its CEO. Hamburg-based activities such as Trustee and Ship management are expected to be consolidated and new investment opportunities actively pursued.
Brian Ladin, founder of Delos Shipping stated, "I have known Tobias for a number of years and have been impressed by his shipping expertise and huge network. Coming to Hamburg to buy the König & Cie. container vessels, I realized that there was an excellent opportunity for us to invest in a broader shipping platform. The biggest advantage we have seen is that König & Cie. is not just focused on one narrow segment but offers a wide range of expertise across the ship financing sector. Based in Hamburg, König & Cie. is in the center of the ship finance industry, and has great contacts with many lenders and a proven track record of successfully acquiring and restructuring shipping assets."
"Based on our long history in credit investing, we knew we needed an experienced team with strong execution skills," said Tim Gravely, Director at Tennenbaum Capital Partners. "Tobias and Jens have many years of experience and are highly skilled, knowledgeable and dedicated. König & Cie.'s strong foothold in Hamburg, international network and strength in origination are also very appealing to us. We're excited about our investment in König & Cie. and we look forward to pursuing other attractive investment opportunities in the shipping sector."
Tobias König commented, "We thank our lenders who saw the opportunity and supported us in this lengthy process and enabled us to successfully restructure and close the transaction with the help of our new investors. During the last five years, the entire team at König & Cie. has been working extremely hard to make the restructuring a success. This has been an extraordinary effort and Jens Mahnke and I are proud to have such a skilled and dedicated team on board. This made the difference and allowed us to meet every challenge. And we believe our investors have noted this too."
About Delos: Delos Shipping ("Delos") seeks to opportunistically invest the capital of its principals and its partners into the shipping industry. Delos uses its in-house research bench and its industry relationships to identify appropriate vessel acquisition or sale-leaseback candidates primarily in the tanker, dry bulk, offshore and container segments of the shipping industry. Delos seeks to provide equity and debt capital to shipping companies on a global basis. Principals of Delos provided pre-IPO financing for shipping companies such as Euroseas Ltd. (NASDAQ: ESEA). Completed transactions range from the acquisition of vessels on a sale/leaseback basis to the acquisition of nine vessels in a joint venture with a large European-based trading house.
About Tennenbaum: Tennenbaum Capital Partners(TM) ("TCP") is a Los Angeles based, alternative investment management firm focused primarily on middle-market credit opportunities. TCP manages a publicly-traded business development company, TCP Capital Corp. (NASDAQ: TCPC), as well as other funds and accounts. The firm's investment professionals use their extensive expertise in industry, legal, operational and financial disciplines to successfully execute TCP's investment strategies. Since its founding, TCP has invested more than $11 billion in over 250 companies. For more information, please visit:
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