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.
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8 comments:
FYI: there is an article in today's FT you should read, CP: "Banks are a proxy for credit bubble fears."
Can you post a link?
nm:
http://www.ft.com/intl/cms/s/0/87e0fc46-a542-11e3-8988-00144feab7de.html#axzz2vIw6zwgg
Anyway they could get an extension on the grace period?
They could be sued by minority bondholders as soon as the grace period expires.
The Company did not make the scheduled semi-annual interest payment of approximately $3.1 million (the "Interest Payment") due on February 18, 2014 (the "Payment Date") under the Notes. However, under the terms of the Indenture, a failure to pay interest on the Payment Date does not constitute an Event of Default (as defined in the Indenture) unless such failure continues for a period of 30 days (the "Grace Period").
http://biz.yahoo.com/e/140219/gnk8-k.html
GENCO SHIPPING & TRADING LIMITED
FIRST SUPPLEMENTAL INDENTURE
DATED AS OF JULY 27, 2010
http://www.lawinsider.com/contracts/2DeE95RNXo8DLkGNec34Vy/genco/1326200/2010-07-27
"The limitations on suits set forth in clauses (a) through (e) of this Section 6.06 shall not apply to actions instituted by a Holder for the enforcement of payment of the principal of or interest amounts on any Security on or after the applicable due date or the right to convert any Security in accordance with the Indenture."
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