"Genco equity panel sees $97-$467M of equity value in company" $GNKOQ $GNK

From leveraged loan:

• According to a June 20 affidavit filed with the bankruptcy court overseeing the case by Rothschild’s Neil Augustine, the panel’s valuation expert, that TEV results in a value in excess of claims that would be available for distribution to equity holders of $97-$467 million, with a mid-point of $282 million.
• Assuming 43.57 million shares outstanding, that translates into a per-share value of $2.23 to $10.72, with a mid-point of $6.47.
• under the company’s proposed reorganization plan, the reorganized equity is to be distributed to holders of the company’s 2007 credit agreement and convertible note claims, as well as to participants in a contemplated $100 million rights offering. Current shareholders are to receive a “gift” distribution of warrants to acquire up to 6% of the reorganized equity at a strike price based on an equity value of $1.295 billion. The warrants are valued at $30-36 million, or $0.67-0.81 per share of the company’s current equity
• The hearing is scheduled to resume today and tomorrow in bankruptcy court in Manhattan, at which time the equity committee will make its case. These sessions promise to be more contentious.

Genco Still At $1.80 Even Though Baltic Dry Index Has Plummeted

Stock price is steady at about $1.80, even though dry bulk rates have fallen 40% from the silly rally in March.

Update on Genco Warrant Package For Existing Shareholders

From an 8-K filing today.

The Debtors’ financial advisor, Blackstone Advisory Partners LP (“Blackstone”), has estimated the post-confirmation enterprise value of the reorganized Debtors to be approximately $1.48 billion.  In developing this estimate, Blackstone considered, among other things, vessel appraisals and other valuation methodologies as well as the reorganized Debtors’ equity interests in Baltic Trading Limited and Jinhui Shipping & Transportation Limited and the $100 million of cash invested through the Rights Offering.  Given the approximately $250 million of debt projected to be on the balance sheet of the reorganized Debtors, the implied equity value of the Reorganized Debtors is approximately $1.23 billion.  The Reorganized Debtors will issue approximately 61.7 million primary shares of the common stock of reorganized Genco valued at $20.00 per share (prior to dilution) in order to satisfy claims pursuant to the Plan.

Under the Plan, holders of equity interests in Genco are entitled to receive warrants to purchase 6% of common stock of reorganized Genco (subject to dilution).  Such warrants, which are effective for a period of 7 years from the effective date of the Plan, are exercisable at a cash-less strike price of a total equity value of $1,295 million.  This strike prices equates to approximately $20.99 per share of reorganized Genco common stock.  The estimated value of such warrants is approximately $30 million to $36 million based on the Black-Scholes pricing model.  After accounting for such warrants, the implied share price of reorganized Genco common stock would range from approximately $19.42 to $19.52 before accounting for any subsequent dilution from the Management Incentive Program contemplated under the Plan.

The foregoing estimates of the post-confirmation equity value of the reorganized Debtors and the share price of reorganized Genco common stock are based on a number of assumptions, including no material adverse changes in the spot rate market, no further ship arrests, the continuing employment of the Debtors’ vessels, the continuing service revenue from Baltic Trading Limited and Maritime Equity Partners LLC, the completion of the Rights Offering, and the Plan becoming effective in accordance with the estimates, and other assumptions.

Their liquidation analysis says that, in a liquidation, the unsecured recovery would be very small.

Och Ziff Takes Position in Genco $GNK

Och Ziff filed a 13D showing a 7.32% stake in the Genco equity. This is exactly why I covered:

The Genco restructuring is inexplicably generous to the equity, and the problem is that if you give them an inch they'll take a mile. There's a big risk that they will view what they are being offered as a floor and agitate for more.

If I wanted to own ships, I'd order some newbuilds. At least they'd be brand new and fuel efficient and wouldn't arrive for a couple years, giving my bullish shipping rate scenario time to materialize. Of course, a hedge fund PM isn't allowed to buy actual dry bulk ships, they have to buy claims on ships at a higher level of abstraction, and that creates a principal-agent incentive problem to overpay for ships so that they can engage in some "action".

Genco

The Genco restructuring is inexplicably generous to the equity, and the problem is that if you give them an inch they'll take a mile. There's a big risk that they will view what they are being offered as a floor and agitate for more. They'll say that the new enterprise proposal is underlevered, that the bonds trading at par prove that the equity is in the money and should get more than warrants.

It's a bizarre, chaotic feedback loop where the appraised ship values don't seem to cover the outstanding debt yet everyone is so bullish on shipping - someday, someday rates will be higher - that the prices of the entire capital structure kept inching higher.

Lesson: don't get between underinvested distressed debt investors and ships.

The comeuppance will come when shipping rates don't improve (or get worse in the next recession), but it will be too late to save a short position here.

Covered.

Estimate of Genco Shipping Warrant Valuation $GNK

This was just sent to me:

Estimated valuation of the existing stock's warrants to buy equity of reorganized Genco, valued using Black-Scholes model. Inputs per 8-K filing:
1.  Assumes reorg initial equity valuation of $1.149 billion ($100 million rights offering / 8.7%)
2.  Assumes strike price on warrants of $1.295 billion
3.  Warrants are sized to 6.0% of total newco equity

The table is showing what the warrant package being given to existing shareholders is worth under various assumptions for implied volatility. (Warrants are like an option: higher volatility in the potential values means that the warrants are worth more.)

The current market cap of GNK is $68 million, so a volatility of 200% would be needed for the stock price to be unchanged.

Volatility of the new equity is going to be dampened because the new company is going to have less leverage, at least initially.

I think a reasonable volatility assumption for a shipping company that's not in distress and has reasonable leverage is about 25%, i.e. about where SFL's near the money calls are priced.

That makes the Genco warrant package worth ~$15 million, or about a 30 cent stock price.

Note that there is a lot of wiggle room in all of these assumptions: initial reorg equity valuation, volatility, whether this plan is even the one that's confirmed.

"Genco Says It’s Reached Pact With Lenders for Chapter 11 Filing"

BB:

"The pact includes converting a 2007 credit line into 81.1 percent of the equity in the restructured company, according to a Genco regulatory filing today. About $1.1 billion was outstanding on that loan on Sept. 30, data compiled by Bloomberg show. The company’s $125 million of convertible securities would be swapped for 8.4 percent of the equity according to the filing. Current equity holders will receive seven-year warrants for a 6 percent stake."

Milestones in the Genco Shipping Restructuring Agreement $GNK

The Company Parties will comply with the following Milestones within the periods specified herein, unless otherwise agreed in writing with the Required Supporting 2007 Facility Lenders, the Required Supporting $253 Million Facility Lenders, the Required Supporting $100 Million Facility Lenders, and Required Supporting Noteholders:

(a)              solicitation of the 2007 Facility Lenders, the $235 Million Facility Lenders, the $100 Million Facility Lenders, and the holders of 5.00% Convertible Senior Notes due August 15, 2015 (the “ Convertible Notes ”) pursuant to that certain First Supplemental Indenture, dated as of July 15, 2007, between Genco as issuer and The Bank of New York Mellon as trustee (such date, the “ Solicitation Commencement Date ”) regarding the Plan shall begin on or before April 16, 2014;

(b)              voluntary petition(s) in the Bankruptcy Court and motions seeking approval of the Plan, the Disclosure Statement, and the solicitation procedures shall be filed (such date, the “ Petition Date ”) on or before the fifth calendar day after the Solicitation Commencement Date; [This would be April 21?]

(c)              the Cash Collateral Order shall have been approved (i) on an interim basis, on or before the fifth business day after the Petition Date and (ii) on a final basis, on or before the forty-fifth day after the Petition Date;

(d)              the order approving the assumption of this Agreement shall have been approved on or before the fifth business day after the Petition Date;

(e)              the order approving the Disclosure Statement and the solicitation procedures and confirming the Plan shall be entered (such date, the “ Confirmation Date ”) on or before the forty-fifth day after the Petition Date; and

(f)              the effective date of the Plan shall occur on or before the later of (i) 10 days following the Confirmation Date, (ii) completion of the Rights Offering (as defined in the Restructuring Term Sheet), or (iii) notice from the respective lenders that the conditions to the closing of the New $253 Million Facility and New $100 Million Facility (each as defined in the Restructuring Term Sheet) have been satisfied or waived.

Management's Estimate of Genco Lender and Noteholder Recoveries $GNK

"In materials presented to certain of the Company’s creditors in early April, the Company estimated that, in the transactions contemplated under the Support Agreement without giving effect to dilution from primary equity or warrants under the MIP and consideration to current equity holders, the holders of indebtedness under the 2007 Credit Facility would receive 89.7% of the primary equity in the reorganized Company and a 96.1% recovery on their claims, while holders of the Convertible Notes would receive 10.3% of such primary equity and an 85.0% recovery on their claims. After additionally taking into account the distribution of primary equity under the MIP, the Company estimated that holders of indebtedness under the 2007 Credit Facility would receive 88.1% of the primary equity in the reorganized Company and a 94.2% recovery on their claims, holders of the Convertible Notes would receive 10.1% of such primary equity and an 83.2% recovery on their claims, and management would receive 1.8% of such primary equity. The foregoing amounts assume conversion of debt into equity as well as participation in the rights offering."

Genco Announces Restructuring Plan $GNK

 On April 3, 2014, Genco Shipping & Trading Limited (the “Company”) and certain of its subsidiaries entered into a Restructuring Support Agreement (the “Support Agreement”) with certain lenders (the “Supporting Lenders”) under each of (i) the Credit Agreement, dated as of July 20, 2007 (as amended to date), by and among the Company as borrower, the banks and other financial institutions named therein as lenders, Wilmington Trust, N.A., as successor administrative and collateral agent, and the other parties thereto (as amended, the “2007 Facility”); (ii) the Loan Agreement, dated as of August 20, 2010 (as amended to date), by and among the Company as borrower, Genco Aquitane Limited and the other subsidiaries of the Company named therein as guarantors, the banks and financial institutions named therein as lenders, BNP Paribas, Credit Agricole Corporate and Investment Bank, DVB Bank SE, Deutsche Bank AG Filiale Deutschlandgeschaft, Skandinaviska Enskilda Banken AB (publ) as mandated lead arrangers, BNP Paribas, Credit Agricole Corporate and Investment Bank, DVB Bank SE, Deutsche Bank AG, Skandinaviska Enskilda Banken AB (publ) as swap providers, and Deutsche Bank Luxembourg S.A. as agent for the lenders and the assignee (as amended, the “$253 Million Facility”); and (iii) the Loan Agreement, dated as of August 12, 2010 (as amended to date), by and among the Company as borrower, Genco Ocean Limited and the other subsidiaries of the Company named therein as guarantors, the banks and financial institutions named therein as lenders, and Credit Agricole Corporate and Investment Bank as agent and security trustee (as amended, the “$100 Million Facility” and, together with the 2007 Facility and the $253 Million Facility, collectively the “Prepetition Senior Facilities”) as well as certain holders (the “Supporting Noteholders” and, together with the Supporting Lenders, the “Supporting Creditors”) of the Company’s 5.00% Convertible Senior Notes due August 15, 2015 (the “Convertible Notes”).

The Support Agreement provides, subject to its terms and conditions, among other things:

    ·     the Supporting Creditors agree (i) to timely vote to accept the proposed plan of reorganization (the “Plan”) contemplated by the Support Agreement, (ii) support approval of the disclosure statement (the “Disclosure Statement”) in respect of the Plan and the cash collateral order (the “Cash Collateral Order”) contemplated under the Support Agreement; (iii) neither join in nor support any objection to the Disclosure Statement, the Cash Collateral Order, the solicitation procedures, or the Plan, or otherwise commence any proceeding to oppose or alter any of the terms of the Plan or any other document filed by Genco in connection with the confirmation of the Plan; and use commercially reasonable efforts to support, consent, and take other actions in connection with the Company’s restructuring contemplated under the Support Agreement (the “Restructuring”) and the Chapter 11 Case (as defined below).

    ·     the Company agrees (i) to support and use commercially reasonable efforts to complete the Restructuring and all transactions contemplated under the Support Agreement in accordance with certain milestones, take any and all reasonably necessary actions in furtherance of the Restructuring and the transactions contemplated under the Support Agreement, including, without limitation, those set forth in the Restructuring Term Sheet (the “Term Sheet”) and, once filed, the Plan; and obtain any and all required regulatory and/or third-party approvals necessary to consummate the Restructuring; and (ii) to take no action inconsistent with the Support Agreement or that would unreasonably delay approval of the Disclosure Statement, the Cash Collateral Order, or the solicitation procedures, or confirmation of the Plan; including soliciting an alternative transaction.

The Support Agreement is subject to termination in respect of the obligations of the Company and the Supporting Creditors in respect of a particular credit facility or the indenture for the Convertible Notes (a “Debt Instrument”) by the mutual written agreement of the Company and Supporting Creditors holding more than 66 2/3% in amount of the principal outstanding under such Debt Instrument (“Required Supporting Creditors”). The Support Agreement is subject to termination in a number of other circumstances, including, without limitation:

    ·     by the Company following the occurrence of any of the events specified in the Support Agreement, including: (i) any Supporting Creditors’ material breach of its obligations under the Support Agreement that would reasonably be expected to have a material adverse impact on confirmation of the Plan and that remains uncured for the specified period; (ii) the Company’s board of directors determining, in good faith and upon the advice of its advisors, in its sole discretion, that (A) continued pursuit of the Restructuring is inconsistent with its fiduciary duties or (B) having received an unsolicited proposal or offer for an alternative transaction, that such alternative transaction is likely to be more favorable than the Restructuring and that continued support of the Restructuring pursuant to this Agreement would be inconsistent with its fiduciary obligations; or (iii) the issuance by any governmental authority of an injunction, judgment, decree or similar ruling or order preventing consummation of a material portion of the restructuring; or

    ·     with respect to the obligations of the Company and the Supporting Creditors in respect of a particular Debt Instrument, upon the occurrence of any of the events specified in the Support Agreement, including: (i) the “Definitive Documents” (as defined in the Term Sheet) filed by the Company include terms that are inconsistent with the Term Sheet; (ii) the filing by the Company of any motion for relief seeking certain specified actions; (iii) the entry by the Bankruptcy Court of certain specified orders; (iv) the Company’s material breach of its obligations under the Support Agreement that remains uncured for the specified period; (v) the Company’s failure to meet the milestones under the Support Agreement; (vi) the Company’s loss of the exclusive right to file or solicit acceptance of a chapter 11 plan; (vii) a termination event under the Cash Collateral order; or (viii) the issuance of an order, not subject to a stay of effectiveness pending appeal, by any court of competent jurisdiction or other governmental authority making illegal or restricting or preventing the restructuring in a manner that cannot be reasonably remedied by the Company.

As set forth in the Term Sheet, the Plan would entail, among other things:

    ·     a $100.0 million rights offering for 8.7% of the pro forma equity in reorganized Genco (the “New Genco Equity”), subject to dilution by the New Genco Warrants (defined below) and the MIP Warrants (defined below). Eligible 2007 Facility lenders will have the right to participate in up to 80% of the rights offering, which portion will be backstopped by supporting 2007 Facility lenders, and eligible holders of Convertible Notes will have the right to participate in up to 20% of the rights offering, which portion will be backstopped by the supporting noteholders;

    ·     conversion of the full 2007 Facility into 81.1% of the New Genco Equity, subject to dilution by the New Genco Warrants and the MIP Warrants;

    ·     replacing the $253 Million Facility and $100 Million Facility with new senior secured credit facilities or amending the facilities to provide for extended maturity dates through August 2019 and certain other covenant modifications;

    ·     payment of the claim under the Company’s outstanding swap in full through mutually acceptable treatment or other treatment consistent with the Bankruptcy Code;

    ·     the unimpairment of all general unsecured creditors’ claims under section 1124 of the Bankruptcy Code;

    ·     the conversion of the Convertible Note claims into 8.4% of the New Genco Equity, subject to dilution by the New Genco Warrants and the MIP Warrants;

    ·     the cancellation of all equity interests in the Company, with such equity interests receiving seven year warrants for 6.0% of the New Genco Equity struck at a $1,295 million equity valuation (the “New Genco Warrants”).

    ·     The establishment of a management equity incentive plan (the “MIP”) pursuant to which the directors, officers, and other management of reorganized Genco will receive the following: (i) 1.8% of the shares of the New Genco Equity, subject to dilution by warrants, (ii) the following three tiers of warrants (the “MIP Warrants”): (a) six-year warrants struck at a $1,618 million plan equity value representing 3.5% of the New Genco Equity, (b) six-year warrants struck at a $1,810 million plan equity value representing 3.5% of the New Genco Equity, and (c) six-year warrants struck at a $2,195 million equity value, representing 5.0% of the New Genco Equity. The MIP will vest over three years in equal proportions. The MIP Warrants will be exercisable on a cashless basis, and will be subject to dilution by the exercise of subsequent tranches of warrants.

The Support Agreement provides for a termination fee of $26.5 million payable to Supporting Lenders under the 2007 Facility and Supporting Noteholders if the Support Agreement is terminated under certain circumstances and the Company consummates an alternative transaction.

The Support Agreement contemplates that the Plan will be implemented through a voluntary bankruptcy case (the “Chapter 11 Case”) under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”). The Support Agreement also provides for the agreement of the Company and the Supporting Creditors to a form of Cash Collateral Order, under which the use of cash collateral of the Company’s creditors will be permitted during the Chapter 11 Case for working capital purposes, other general corporate purposes, and costs and expenses of the Chapter 11 Case, in each instance in accordance with a budget to be determined.

Genco Extends Restructuring Talks

This morning,

As of the date of this report, Genco Shipping & Trading Limited (“we” or the “Company”) continues to be in discussions with certain of our creditors to seek a consensual restructuring of our outstanding indebtedness. On March 31, 2014, we entered into agreements (the “Relief Agreements”) with certain of the lenders under our 2007 Credit Facility, our $100 Million Term Loan Facility, and our $253 Million Term Loan Facility to obtain waivers or forbearances with respect to certain potential or actual events of default as of March 31, 2014 as described in our Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on March 31, 2014 (the “March 31 8-K”). On April 1, 2014, we entered into new agreements with the other parties to the Relief Agreements that extend the expiration of the forbearances and waivers under the Relief Agreements from 11:59 p.m. on April 1, 2014 to 11:59 p.m. on April 21, 2014. Also, the forbearances and waivers would terminate if a definitive agreement for our restructuring is not effective by 11:59 p.m. on April 4, 2014. Such new agreements are otherwise on substantially the same terms and conditions as the Relief Agreements as described in the March 31 8-K.

So, deadline Friday at midnight for a "definitive agreement"?

Nothing Yet From Genco

The forbearance agreement expires in an hour.

Genco Shipping Gets One Day Of Forbearance From Lenders

The 8-K just filed:

As of the date of this report, Genco Shipping & Trading Limited (the “Company”) continues to be in discussions with certain of our creditors to seek a consensual restructuring of our outstanding indebtedness.  To allow such discussions to continue into April 2014 without the need to file for bankruptcy relief, on March 31, 2014, we entered into agreements with certain of the lenders under our 2007 Credit Facility, our $100 Million Term Loan Facility, and our $253 Million Term Loan Facility (our “Credit Facilities”) to obtain waivers or forbearances with respect to certain potential or actual events of default as of March 31, 2014 as follows (the “Relief Agreements”):

    ·     not making the scheduled amortization payment on March 31, 2014 under our 2007 Credit Facility;

    ·     not meeting the consolidated interest ratio covenant for the period ended March 31, 2014;

    ·     not meeting the maximum leverage ratio covenant for the period ending March 31, 2014;

    ·     not meeting the collateral maintenance test under the 2007 Credit Facility;

    ·     not meeting the minimum cash balance covenant under the 2007 Credit Facility;

    ·     not furnishing audited financial statements to the lenders within 90 days after year end for the year ended December 31, 2013;

    ·     a cross-default with respect to our outstanding interest rate swap with respect to the foregoing;

    ·     cross-defaults among our credit facilities with respect to the foregoing; and

    ·     any related defaults or events of default resulting from the failure to give notice with respect to any of the foregoing.

The Relief Agreement for our 2007 Credit Facility provides that the agent and consenting lenders will forbear to exercise their rights and remedies with respect to the foregoing potential or actual events of default through 11:59 p.m. on April 1, 2014, subject to earlier termination if a subsequent event of default other than those described above occurs under our credit agreements or if we breach the terms of the Relief Agreement.  The Relief Agreements for our other two Credit Facilities provide that the agent and lenders waive the foregoing potential or actual events of default through 11:59 p.m. on April 1, 2014, subject to earlier termination if a subsequent event of default occurs other than those described above under our credit agreements or if we breach the terms of the Relief Agreements.  Notwithstanding such waivers and forbearances, the fact that we did not make the scheduled amortization payment on March 31, 2014 constituted an event of default under our currently outstanding interest rate swap.  In addition, under the indenture and supplemental indenture (the “Indenture”) governing our 5.0% Convertible Senior Notes on July 27, 2010 (the “Convertible Notes”), our failure to make such payment would constitute an event of default under the Indenture if we fail to cure such default within 30 days after notice from the trustee under the Indenture.

There can be no assurance that our ongoing discussions with certain of our creditors will result in a consensual restructuring before we would be compelled to seek bankruptcy relief.    The Company does not intend to provide updates or details of the restructuring discussions.  Any agreement we may reach with our creditors regarding a restructuring may require implementation through one or more concurrent proceedings under Chapter 11 of Title 11 of the United States Bankruptcy Code.  The risks described in Item 8.01 of our Current Form on 8-K filed with the U.S. Securities and Exchange Commission on February 19, 2014 with respect to our potential restructuring continue to apply. 

A one day forbearance!

Genco Shipping Makes Notes Interest Payment

Surprise release after hours on Friday,

"On March 20, 2014, Genco Shipping & Trading Limited (the “Company”) made the scheduled semi-annual interest payment of approximately $3.1 million originally due on February 18, 2014 under its 5.00% Convertible Senior Notes due August 15, 2015 (the “Notes”). Such payment was made within the applicable 30-day grace period under the Indenture dated July 27, 2010 (as supplemented) between the Company and The Bank of New York Mellon, as trustee under which the Notes were issued and within the waiver period under the Limited Waiver of Default, by and among the Company, the various lenders and other parties named therein, and Crédit Agricole Corporate and Investment Bank, as Agent and Security Trustee, dated as of February 18, 2014. For further details of the foregoing, please refer to the Company’s Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on February 18, 2014 (the 'February 8-K').

The Company continues to be in discussions with representatives of its secured lenders and certain holders of the Notes concerning a potential restructuring of its indebtedness. The Company does not intend to provide updates or details of the restructuring discussions. The risks described in Item 8.01 of the February 8-K with respect to such potential restructuring continue to apply."

Unusual for a company to actually make an interest payment after using a grace period.

Genco Files Form NT 10-K - Notification of inability to timely file Form 10-K

Just filed:

"Genco Shipping & Trading Limited (the “Company”) has determined that it is unable to file its Annual Report on Form 10-K for fiscal year ended December 31, 2013 in a timely manner. As discussed in the Current Report on Form 8-K filed by the Company on February 19, 2014, the Company is seeking restructuring of its capital structure and is in ongoing discussions with representatives of its secured lenders and certain other holders of its indebtedness concerning a potential restructuring of its indebtedness. Due to the demands associated with the potential restructuring and related activities, despite diligent efforts, the Company has been unable to complete the preparation, review, and filing of its Annual Report on Form 10-K within the prescribed time period without unreasonable effort and expense. The Company anticipates filing its Annual Report within the additional time provided by the filing. The Company believes that the Form 10-K may include going concern uncertainty disclosure."

No Word From Genco Shipping

Well, that's surprising. I figured that since their interest payment grace period is about to expire they would have filed over the weekend. Looks like they are going to Push It To The Limit.

Hello, Genco Bankruptcy Professionals

Just an educated guess that you are in the office tonight.

Genco Color

Hearing that Genco bank debt is trading around par - term loans (a $75.5mm and $180.8mm) were quoted ~105 midpoint today, while the revolver (fully-tapped, $1.05 billion) was quoted at ~102 earlier this week.

But the convertible notes have been trading in the low 60s - the fulcrum security. 

Who Is Buying Genco?

Genco (GNK) has retraced almost the entire decline since skipping its interest payment on unsecured notes. There's a 30 day grace period on the notes, so something is going to happen in about a week. It's too late to do an exchange offer and the notes are trading at 63, flat, so they are the fulcrum security. I would guess that the company will file Chapter 11 before the expiration of the grace period on the notes. Meanwhile, retail is excited about shipping stocks including Genco.

"NY shipping big set to lose 2nd company after default" $GNK

Peter G!

Georgiopoulos, 52, whose long silver mane and supermodel wife Kara Young are not unknown to New York’s paparazzi, has to shell out about $11,000 a day to operate one of Genco’s tankers, but rental rates have dropped to about $10,000 a day, the company, a bulk shipper, said recently, putting Genco in a bind.

The tattered tycoon is discussing a debt-for-equity swap with Genco lender Centerbridge Partners, The Post has learned.

The private-equity firm would take control of the company in a pre-packaged bankruptcy but leave him in place to run the operation, sources said.

For Georgiopoulos, a West Village resident who in 2008 claimed he was worth $2 billion, it’s his second shipwreck in two years.

In 2012, Oaktree Capital Management reached a deal with Georgiopoulos to repossess General Maritime Corp. through a pre-packaged bankruptcy.

He was also left in charge of that company.