Genco Shipping & Trading Ltd. Enters into Limited Waiver of Default Agreement
Feb 19 14
On February 18, 2014, Genco Shipping & Trading Ltd. and the other parties under that certain loan agreement, dated as of August 20, 2010, 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, entered into a limited waiver of default. Under the waiver agreement, such lenders agreed to waive, subject to certain conditions, an event of default under the $100 million term loan facility resulting from the company’s failure to make the scheduled semi-annual interest payment under its 5.00% convertible senior notes due August 15, 2015, issued pursuant to an Indenture dated July 27, 2010 between the company and The Bank of New York Mellon, as trustee on its due date of February 18, 2014. However, under the terms of the Indenture, a failure to pay interest on the payment date does not constitute an event of default unless such failure continues for a period of 30 days. Despite the grace period under the indenture, the failure to make the Interest Payment on the Payment Date may constitute a default under the $100 Million Term Loan Facility. Under the Waiver Agreement, the lenders under the $100 Million Term Loan Facility have agreed to waive, for a certain period of time and subject to certain conditions, the occurrence of an event of default thereunder as a result of the company’s failure to make the interest payment on the payment date. Such waiver expires upon the earliest of March 21, 2014, the occurrence of any event of default under the $100 million term loan facility other than the event of default being waived, and the failure of the company or any of its subsidiaries who is a guarantor under such facility to observe any of its covenants or agreements under the Waiver Agreement. In fulfillment of a condition to the waiver, the Company prepaid approximately $1.9 million of the principal amount under the facility that was due on March 31, 2014. As a result of the continued weakness in charter rates and required payment of debt obligations of, and expenditures by, the Company, the company is using the Grace Period to review its financing options and is currently considering various alternatives with respect to the restructuring of its capital structure. In this connection, the Company is in discussions with representatives of its secured lenders and certain holders of the Notes concerning a potential restructuring of its indebtedness. The Company has retained Blackstone Advisory Partners L.P. as its financial advisor with respect to such potential restructuring. The company does not intend to provide updates or details of the restructuring discussions on an ongoing basis. Given the ongoing restructuring discussions, the company has not yet scheduled the release of its financial results for the year ended December 31, 2013. Potential modifications to the Company’s capital structure include seeking additional liquidity through amendments or refinancings of existing indebtedness or waivers or extensions of obligations thereunder, conversion or exchange of debt into equity, additional offerings of debt or equity, vessel sales, the sale of all or a portion of the Company’s business, and/or commencing a voluntary proceeding to reorganize under Chapter 11 of the Bankruptcy Code.
Genco Shipping & Trading Ltd. Announces Consolidated Unaudited Earnings Results for the Third Quarter and Nine Months Ended September 30, 2013; Provides Capital Spending Guidance for the Fourth Quarter of 2013 and Full Year of 2014
Nov 6 13
Genco Shipping & Trading Ltd. announced consolidated unaudited earnings results for the third quarter and nine months ended September 30, 2013. For the quarter, the company reported total revenues of $59,433,000 compared with $54,431,000 for the same period a year ago. Operating loss was $13,387,000 compared with $20,194,000 for the same period a year ago. Loss before income taxes was $36,497,000 compared with $41,734,000 for the same period a year ago. Net loss attributable to Genco Shipping & Trading Limited was $35,034,000 or $0.81 per basic and diluted share compared with $38,449,000 or $0.90 per basic and diluted share for the same period a year ago. EBITDA was $23,732,000 compared with $18,389,000 for the same period a year ago.
For the nine months, the company reported total revenues of $145,679,000 compared with $177,206,000 for the same period a year ago. Operating loss was $70,938,000 compared with $43,149,000 for the same period a year ago. Loss before income taxes was $136,869,000 compared with $107,997,000 for the same period a year ago. Net loss attributable to Genco Shipping & Trading Limited was $128,566,000 or $2.98 per basic and diluted share compared with $99,289,000 or $2.40 per basic and diluted share for the same period a year ago. Net cash used in operating activities was $24,626,000 compared with $4,012,000 for the same period a year ago. EBITDA was $42,626,000 compared with $70,391,000 for the same period a year ago.
The company provided capital spending guidance for the fourth quarter of 2013 and full year of 2014. For the quarter, the company expects to spend $2.3 million. And for the full year of 2014, the company expects to spend $14.4 millioin.
Genco Shipping & Trading Ltd. to Report Q3, 2013 Results on Nov 06, 2013
Oct 28 13
Genco Shipping & Trading Ltd. announced that they will report Q3, 2013 results at 5:00 PM, Eastern Standard Time on Nov 06, 2013