"Genco Shipping & Trading Management Discusses Q3 2013 Results - Earnings Call Transcript"

From the Seeking Alpha Q3 2013 conference call transcript for Genco:

*Christian Wetherbee - Citigroup Inc, Research Division
John, can you comment at all about the potential timing of getting something done on the bank side, or are you sort of keeping that completely off-limits for the call today?

John C. Wobensmith - Chief Financial Officer, Principal Accounting Officer, Secretary and Treasurer
Look, we're in active discussions with the banks. But beyond that, not going to comment. But look, I think everybody is aware that come March 31, 2014, we have covenant measures that come back into place and there is also a large amortization payment of $48.5 million due on March 31 of next year [2014].

*Andrew Casella - Imperial Capital, LLC, Research Division
Just quick, 2 financial ones. If you could break out the $57.7 million of cash between unrestricted and restricted and just remind us what are the restrictions on that balance?

John C. Wobensmith - Chief Financial Officer, Principal Accounting Officer, Secretary and Treasurer
Yes. I mean, let's actually go further on that. We have a minimum cash requirement that's measured each -- at the end of each quarter that is approximately, call it, $40 million. It's $39.7 million, $39.8 million versus the $57.7 million that's on the balance sheet.

Andrew Casella - Imperial Capital, LLC, Research Division
So the $39.7 million is the restricted number and then whatever is remaining between that and the stated amount is unrestricted?

John C. Wobensmith - Chief Financial Officer, Principal Accounting Officer, Secretary and Treasurer
Yes. The $39.7 million is the minimum cash requirement that's required by all the banks measured at the end of the quarter. [Very good question by the Imperial guy. So, the actual completely unrestricted cash balance at Sept 30 was $17.7 million.]

Andrew Casella - Imperial Capital, LLC, Research Division
All right. Great. And then just a quick follow-up. I obviously know you're sensitive to the bank conversations, but is there any color you could provide as far as what are the options being evaluated? Is it potentially asset sales and ATM? Is there any color you could provide the market?

John C. Wobensmith - Chief Financial Officer, Principal Accounting Officer, Secretary and Treasurer
No.

So, the unrestricted cash balance at Sept 30 was $17.7 million against a payment of $48.5 million due on March 31, plus tighter covenants. Note that the company had to write a big check in 2012 in order to get temporary waivers on the covenants:

"As part of these agreements, the Company prepaid an aggregate of $99.9 million in principal loan amounts reducing the facility amounts for each facility. Specifically, $57.9 million was allocated to the 2007 Credit Facility, $30.5 million was allocated to the $253 Million Term Loan Facility and $11.5 million allocated to the $100 Million Term Loan Facility."

Waivers are a big bargaining chip. At this point, now that the company is very low on cash, what does it have to offer in exchange for forbearance?

P.S. The Baltic Dry Index sure isn't helping. Notice that it trades like an emerging market stock.