Wednesday, April 2, 2014

Genco Extends Restructuring Talks

This morning,

As of the date of this report, Genco Shipping & Trading Limited (“we” or the “Company”) continues to be in discussions with certain of our creditors to seek a consensual restructuring of our outstanding indebtedness. On March 31, 2014, we entered into agreements (the “Relief Agreements”) with certain of the lenders under our 2007 Credit Facility, our $100 Million Term Loan Facility, and our $253 Million Term Loan Facility to obtain waivers or forbearances with respect to certain potential or actual events of default as of March 31, 2014 as described in our Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on March 31, 2014 (the “March 31 8-K”). On April 1, 2014, we entered into new agreements with the other parties to the Relief Agreements that extend the expiration of the forbearances and waivers under the Relief Agreements from 11:59 p.m. on April 1, 2014 to 11:59 p.m. on April 21, 2014. Also, the forbearances and waivers would terminate if a definitive agreement for our restructuring is not effective by 11:59 p.m. on April 4, 2014. Such new agreements are otherwise on substantially the same terms and conditions as the Relief Agreements as described in the March 31 8-K.
So, deadline Friday at midnight for a "definitive agreement"?

7 comments:

Anonymous said...

The Koshla/SVP investment is interesting.

At this point, are there any options aside from a BK filing or a debt for equity swap?

With the debt/equity swap it's a very tight timeline with a deadline by the 21st.

With the two different dates given, the swap seems like the preferred route.

Anonymous said...

Does anyone know if Khosla owns Genco debt? Could explain why he took equity position.

Anonymous said...

Vic is not a distressed equity investor and is likely after part or all of the bank notes and/or preferred equity. The only reason why he'd buy equity is to align with management. They are likely trying to consolidate and extend debt. They might also try to get a short-term credit facility set up in order to carry out a swap or issue new equity.

Anonymous said...

It's really up to the banks at this point...

CP said...

Only ~84 bid for the notes.

You'd think if someone was so enthusiastic they'd be buying paper and the price on this small issue would shoot up to or close to par.

Anonymous said...

New 8K filed..

the cancellation of all equity interests in the Company, with such equity interests receiving seven year warrants for 6.0% of the New Genco Equity struck at a $1,295 million equity valuation (the “New Genco Warrants”).

http://www.sec.gov/Archives/edgar/data/1326200/000114036114015666/form8k.htm

Anonymous said...

I wonder if the warrants will be listed..