St. Johns Ferry operator files for bankruptcy (Courtesy of the Jacksonville Business Journal) — The parent company of the St. Johns River Ferry operator has filed for Chapter 11 bankruptcy.
Service in Jacksonville will not be affected, according to the Hornblower Group, the parent company of HMS Ferries.
HMS Ferries has operated the local ferry operation for years. It was the only company to bid for the job when ownership of the ferry was transferred to JTA in 2017.
“The steps we are taking to transition the ownership of Hornblower Group and strengthen our financial foundation will have no impact on the land and water based experiences and transportation services we provide globally,” Hornblower Group CEO Kevin Rabbitt said in an email to the Jacksonville Business Journal sent in response to questions. “All of our operations are running normally, and we are continuing to serve guests and commuters in Jacksonville without interruption. We look forward to welcoming commuters on the ferry well into the future.”
The ferry was out of service for three weeks in February to conduct maintenance and infrastructure improvements, according to JTA. That regularly scheduled maintenance was unrelated to the bankruptcy, and service resumed Tuesday.
San Francisco-based Hornblower announced last week it will receive $121 million in new-money financing from funds managed by Strategic Value Partners LLC and Crestview Partners. That influx of cash will support the company’s operations and reduce the company’s debt by roughly $720 million, the company said.
HMS Ferries has between $500 million and $1 billion in assets and between $1 billion and $10 billion in liabilities, according to its Chapter 11 restructuring filing in the U.S. Southern District of Texas. Its largest unsecured creditor is Seatran Marine, with an unsecured claim of nearly $4 million.
The company also operates ferries in New York City, Tampa, Pensacola and other cities.