Saturday, March 22, 2014

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.


Anonymous said...

Part of a prepacked deal or an extension for the upcoming payments on the way?

Anonymous said...

Does anyone know if they have enough cash to make the $55 million payment? If they made payment, they would be under the minimum cash covenant.

Anonymous said...

Been very quite since they made the payment. Bonds have been steadily rising and now trading in the low 80's.

Any idea what is going on behind the scenes with the creditors and Georgiopoulos?

Anonymous said...

Maybe some news leaking..

Anonymous said...

I would think the lawyers are working this weekend after yesterdays 8k.