Greek Fuel Shipper Eletson to Seek Chapter 11 Bankruptcy

Eletson Holdings Inc. is planning to seek Chapter 11 bankruptcy after resolving a dispute with creditors who tried to force the fuel shipper to liquidate.

Eletson, a shipping company based in Greece, has agreed to voluntarily enter Chapter 11 protection rather than keep fighting with creditors who have been attempting to force it into a liquidation bankruptcy, court papers show. Some of the company’s bondholders filed involuntary Chapter 7 petitions against Eletson in March.

Investors holding more than $200 million of Eletson bonds turned to a US bankruptcy court for help collecting on their debts earlier this year after ...