From each according
to his ability,
to each according
to his needs!
By George Weltman
s one can imagine, there
was no shortage of deals
nominated in this category and
the problems dealt with ranged
from mere covenant breaches to
debt restructurings with equity
infusions. In the majority of
instances, the main culprit was
the breach of the loan to value
covenant, one of the few
covenants to sneak into the loan
documents of the recent past.
With cash flow and on hand
liquidity sufficient to service
debt, these were largely nonevents but for the price
extracted by the banks for the
necessary waivers. The breach
provided the leverage the banks
needed to repair their balance
sheets and offset their higher
funding costs. For others, it was
a matter of survival. Armada
and Eastwind never made it out
of triage, while CSAV and ZIM
were eventually taken off of the
resuscitator to survive another
day. The common feature and
what made each of these
restructurings work is expressed
in the quote from Karl Marx
which begins this article or,
perhaps more appropriately, the
maritime concept of general
average, under which all share
equally in the risks of a voyage.
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Marine Money
Many of the nominees are
worthy of mention. AMA
staked out a dominant position
restructuring Norwegian high
yield bonds used in the offshore
sector. AMA represented the
bondholders
and
won
mandates in 7 deals, totaling
over $2 billion. Solutions
ranged from M&A processes,
to the injection of new debt, to
taking the companies through a
structured bankruptcy.
When the borrower is upfront
and frank with its lenders,
wonders can be accomplished.
Approached by Paragon in the
4th quarter 2008, its banks,
which included HSH Nordbank, Commerzbank, Bank of
Ireland, HBOS, HypoVereinsbank and First Business Bank,
were able to cooperate in
restructuring the various facilities. A key part of the process
was that all banks received
similar terms with loans being
amended into amortizing term
loan facilities, all with similar
profiles to zero at similar vessel
ages. Moreover, as some charterers were hinting at the downward renegotiation of charter
hire, it was agreed that all the
banks would adapt their repay-
ment schedules in a similar way,
whether or not their particular
charter was likely to be renegotiated. Additionally, while most
financial covenants were waived
for 2009, there was agreement
that all bank loans would be
covered 100% by the value of
their security by January 1,
2010. And perhaps most
importantly, the banks knew
where help was going to come
from and, in an unusual twist,
allowed the payment of dividends, albeit at a restricted
level. They understood that the
company would need to
demonstrate the ability to pay
dividends, in order to attract
further equity. The upshot was
that the company became profitable in 2009 and now has
$150 million in cash on its
balance sheet, as a direct result
of the restructuring and subsequent equity raises.
While the cruise industry is
generally outside our purview,
it is worth noting that both in
terms of size and parties
involved, DnB NOR’s restructuring of NCL’s debt was a
standout. Undertaken in a
period of uncertainty in both
the cruise and financial sectors,
DnB, as sole advisor, had to
find a solution for a complex
financing structure of $2.5
billion, which involved 21
banks and 3 ECAs spread across
6 facilities. Making it more
difficult was the varying security positions of the lenders,
limited time before the financial covenants were breached
and the need for an “all or
none” solution. DnB was able
to mediate an amicable solution
that eased the steep repayment
schedules in line with the
reduced EBITDA in a timely
fashion.
As advisor to Global Ship
Lease, Citi had the unenviable
challenge of negotiating a
temporary waiver for GSL’s
breach of its LTV covenant
while at the same time trying to
convince the banks to release
the new funds that the
company required to purchase
the CMA CGM Berlioz.
Despite the problems in the
container sector and the
company’s predominant exposure to a single charterer, CMA
CGM, Citi was able to get the
banks to agree to a waiver
through the 1Q 2011 and the
release of the needed funds.
www.marinemoney.com
Of all the shipping sectors, the
prospects for container shipping were the bleakest. For the
first time in over 20 years,
demand, which had historically
grown at a 10% CAGR,
declined. Volumes and freight
rates collapsed to unprecedented levels. Meanwhile,
fueled by the easy financing of
the German KG system and the
demand for ever larger ships,
capacity was growing exponentially. An unstoppable force met
an immovable object resulting
in a train wreck, with tonnage
laid up, orders deferred and
cancelled and slow steaming
becoming de rigueur for
economic rather than environmental reasons. While all the
container lines were hard hit,
two regional players, lacking
the financial strength of the big
players, came under pressure
from their orderbook and
related debt, necessitating an
overhaul of their respective
balance
sheets.
Unlike
Solomon, we were unable to
choose a clear winner so we
have awarded the Restructuring
Deal of the Year to the CSAV
and ZIM restructurings, whose
key advisors were respectively,
HSH Corporate Finance and
Goldman Sachs. And while
most credit goes to the overall
advisors in each, both deals had
major debt re-structuring issues
that were ably handled by BNP
Paribas as agent bank for the
key syndicates.
ZIM
What do you do when you are
faced with a $1 billion funding
gap and about $2 billion in
debt? If you are ZIM Integrated
Shipping, presumably, you have
been in touch with your lenders
and then you call Goldman
Sachs. ZIM was one of the few
consensual, out of court, nongovernment backed restructurings, which achieved resolutions on multiple fronts
including:
• Renegotiation of a significant orderbook from
multiple shipyards.
• Retention of committed
funding for new vessels.
• Retention of export credit
agencies in existing and
future funding.
• Significant postponement of
scheduled debt repayments
from banks and bondholders.
• Renegotiation of charter
contracts with all counterparties.
• Equity contribution
approved by shareholders.
Like its peers, ZIM participated
in the shipping lines gone wild
party increasing its capacity by
58.6% from 2006 with a
commensurate increase in debt,
excluding undrawn commitments, of 263.5%. What
happened and the consequences of this aggressive
growth strategy are shown
pictorially in figure 1.
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www.marinemoney.com
Marine Money
41
The solution required concessions from all of ZIM’s stakeholders. And since neither ZIM
or, for that matter, CSAV fit
into the “too big to fail” category, concessions were not
easily forthcoming. As is typical
in these instances, future
commitments are always a
problem and one of the largest
issues to be dealt with, in this
instance, were the newbuildings
on order and the related
financing, which was 90%
undrawn at the time. The banks
were loathe to fund and the
shipyards (Korean, Chinese and
Japanese) unwilling to agree to
outright cancellations or price
reductions.
As arranger and agent of the 3
largest pools of banks
(including 7 banks plus 3
ECAs: Kexim, KEIC and
China Exim with total commitments of over USD 1bn), BNP
Paribas has played a lead role in
ZIM's restructuring. These
facilities were very difficult to
maintain during the restructuring period because only a
minor part had been drawn at
the time of the default, and
there was a need for both a
credible restructuring plan and
a secured structure to convince
banks to keep their commitment to finance ZIM in the
future.
In terms of shared risk and givebacks to deal with the "to be
delivered" vessels, we understand that the shipyards
consented to significant deferrals, vendor financing and
deposit transfers. The export
credit agencies acted commercially, looking for market terms.
The 60% to 70% backing was
available but collateral was a
crucial issue. Reluctant to sell
the loans and incur losses, the
banks were willing to give long
grace periods and waivers. And,
finally, the charters were modified to provide for lower hire,
with the form of payback
varying among equity/debt,
extensions, and market upside.
The law firm of Allen & Overy
LLP also played a key role in
the restructuring. Figure 2
shows how the funding gap was
closed.
The solution was a testament to
leadership, transparency and
the realization that cooperation
rather than self-interest are how
things get done.
Germany to
the Rescue
While the same market forces
were at work, the situation in
the Southern Hemisphere was
somewhat different. CSAV,
headquartered in Valparaiso,
Chile, is the 13th largest liner
company in the world with
sales of over $5 billion and 100
vessels under employment in
2008. Peculiar to the company
is that it chose an asset light
business model, with the
majority of its fleet not owned,
but chartered in from
shipowners mainly in Germany.
With freight tariffs and
volumes collapsing, CSAV was
burning cash on its costly chartered-in fleet and would soon
enter difficult financial straits.
No longer able to support the
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Marine Money
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charter rates, which were fixed
for mid to long-term, CSAV
understood that any solution to
its problems would need to
incorporate the shipowners
from whom it chartered its
vessels.
In March, CSAV appointed
HSH Corporate Finance as its
exclusive financial advisor for
the restructuring of the
company’s obligations. The
immediate goals were to get
transparency on the business
plan, determine the resulting
liquidity requirements and
structure a possible solution.
Having completed its analysis
in early April, HSH held its
first meeting in Hamburg with
the owners and financing
banks. At that meeting, a standstill agreement was negotiated
which allowed CSAV to reduce
its charter rates temporarily,
while a solution was being
negotiated.
The time frame for a more
permanent solution was tight as
it was contingent upon a previously
committed
capital
increase of $130 million from
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the existing shareholders, who
were unwilling to go forward
without a commitment from
the shipowners. An agreement
to improve the equity base of
the company was reached at the
last minute and consisted of the
following:
• Shareholders would provide
fresh money by way of two
equity increases, with a
minimum to be raised of
$350 million.
• Shipowners agreed to reduce
charter rates by an average of
36% for 24 months
commencing in April 2009,
which amounts would be
converted into equity at a preagreed share price after
completion of the two shareholder capital increases. This
represents about $360 million
of the capital increase
•A minimum of $710 million
was to be raised.
Both of the shareholder equity
raises were a complete success
with $145 million raised in July
and a further $270 million in
December. Both increases were
100% subscribed. The third
increase, the debt for equity
swap of the charter rate reduction into shares of CSAV is
currently in process.
But it was not only the
shipowners and shareowners
that contributed. With the
cooperation of the shipyard and
BNP Paribas, its lender on the
newbuilding facility, CSAV was
able to significantly alter its
newbuilding program to fit its
new strategy. The order for four
12,600 TEU was converted
into an order for five 8,000
TEU vessels with high reefer
capacity. Critical to the agreement to change this order was
the restructuring and transfer of
the original financing to the
new vessels, which was
managed by BNP Paribas as
agent for the banks.
In retrospect, HSH attributed
the success of the restructuring
to the following key factors:
•A strong management team,
that was willing to give transparency to its stakeholders
about its actual situation and
plans to overcome the challenges it faced
• Shareholders that not only
supported the deal with fresh
money but accepted the
resulting dilution.
• A strong main shareholder
that lead the way for other
shareholders to follow, and
assisted in the negotiations
with the other stakeholders
• Access to the capital markets
•Shipowners which showed
goodwill and solidarity with
an important client and
which acted in unity
• Financing banks that were
able to facilitate shipowners
to make their contribution.
Like all deals, only time will tell
if these restructurings will be
successful as much is dependent
on an economic recovery.
However, both ZIM and CSAV
have strengthened their balance
sheets by restructuring their
obligations while improving
their liquidity. Each stakeholder
has shared in the pain and will
likewise be rewarded when the
market turns. In the interim,
the ships are working and the
banks are being paid. For the
moment that may be as good as
it gets.
Selected 2009 Restructurings
Company
Advisors
Banks
Comments
Date
Euroseas Ltd
Reduced dividend to $0.05 from $0.10 to preserve cash for future investments.
Nov-09
Seanergy Maritime
Received waiver extension on its LTV covenant through 12/10.
Nov-09
Received waivers on 2 facilities of $117.5M. Waiver process now complete and
Nov-09
DryShips
Deutsche Schiffsbank
x-defult resolved. Normal classification of LTD resumes.
TBS International
Although in compliance with waivers, GAAP requires LTD to be re-classified as
Nov-09
current. Exploring ways of re-structuring facilities
Top Ships
In breach of additional covenants not previously waived. Seeking waivers or
Nov-09
other solutions.
Zim Integrated
Goldman Sachs &
$450M equity contribution from parent, Israel Corp. plus $100M safety net.
Shipping Services
Freshfields Bruckhaus
In addition, ~$500M credit line from 3 syndicates to finance NB includes
Deringer
DryShips
Nov-09
favorable repayment terms plus up to 3 years grace.
Commerzbank, West LB
Agreed waiver terms for $70M of outstanding debt. Left with 2 facilities with
Nov-09
aggregate debt of $117.5M to be finalized.
Marine Money
www.marinemoney.com
Selected 2009 Restructurings continued
Company
Advisors
StealthGas
Banks
Comments
Date
Deutsche Bank
Amended Navig8 Faith agreement to lower LTV to 105% from 125% through
Oct-09
9/30/10. $25K fee plus spread increased from 0.70% to 2%
TBS International
Parent company to move domicile from Bermuda to Ireland
Oct-09
Seanergy/Bulk
Reduction of security requirement and minimum equity ratio through 7/2010
Oct-09
Amended and combined credits.Reduced commitments to $172.6M, deferred
Oct-09
Energy Transport
Trico Supply AS,
Nordea, HVB
Trico Subsea Holding
3Q09 principal, restructured amortization, x-collateralized, updated collateral and
AS et. al
guaranteed by Trico Marine.
Hapag-Lloyd
HSH Nordbank
Gov't approved guarantees of EUR 1.2bn covering 90% of the credit risk of bank Oct-09
loans which was a pre-condition.
Camillo Eitzen & Co
New agreement includes new covenant structure & installment schedule better
(CECO)
suited for current market, subject to equity offering and revised terms in existing
Oct-09
bond debt.
Eitzen Chemical
Financial covenants suspended and installments deferred until Q4 2012 when due Oct-09
in a balloon with possible variable amortization; Conditioned on $100 equity issue,
new min cash and LTV covenants.
Eitzen Chemical
Loan amendments approved by bondholders subject to completion of $100 equity Oct-09
issue and amendment of loan agreements.
Neplines
None
Alliance Investment Bank, Insolvent
Sep-09
Malaysia's Export-Import,
Bank and Bank
Pembangunan
Aries Maritime
Lenders entered into a commitment to refinance Aries' existing fully revolving
Sep-09
credit facility; Condition of takeover by Grandunion
Danaos Corporation
Obtained waivers for existing and future breaches of financial covenants until
Sep-09
October 1, 2010.
Seanergy
LTV waiver through July 2010
Sep-09
Eitzen Chemical
Equity issue as part of restructuring plan; Also seeking to amend debt repayment
Sep-09
schedule and covenants structure
First Ship Lease Trust
Secured 2 yr waiver for LTV covenant. Conditions: quarterly $8m repayments &
Sep-09
increased margin during waiver's tenure (start of 2011)
Global Ship Lease
Agreement to waive LTV and part finance Berlioz. Conditions: dividend
Aug-09
suspension, cancellation of undrawn $200m, LIBOR + 3.5% thru 11/30,
then on grid. CMA CGM to retain equity position
Glenda International
Hapag- Lloyd
Expanded arbitrations to 4 newbuildings at SLS Shipbuilding
HSH Nordbank
Aug-09
TUI & Ballin agreed to provide pro rata a further EUR420M. TUI to convert debt Aug-09
to equity or hybrids. HSH will now apply for gov't guarantees of EUR 1.2bn
Seaspan
Exercised options to defer for 2 to 15 months the delivery of 11 vessels.
Aug-09
Additional 2 delayed for 9 months.
Eagle Bulk Shipping
Royal Bank of Scotland
Collateral covenants based upon book values. Coverage ratio lowered.
Aug-09
Availability reduced and spread increased. 50% of net proceeds of equity
offerings to reduce debt.
Golden Ocean
Sale of 6 NB P'max to Britannia terminated.GOGL negotiating with yard with
Aug-09
respect to deliveries
General Maritime
Revised annual dividend in light of market conditions to $0.50 per share.
Jul-09
Supported by current contracted revenues.
US Products Investor
Blackstone
Blackstone assumes control of JV now called American Petroleum Tankers and
Jul-09
appoints Crowley as manager
Sasaki Shipbuilding
Hiroshima Bank
Bank to bailout shipyard
Jul-09
A KG part of HCI
Deutsche Schiffsbank,
M/V Marcantania, redelivered by C& Line, to be sold after investors refused
Jul-09
Shipping Select XV
HSH Nordbank
capital call. Losses capped at 21%
www.marinemoney.com
Marine Money
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Selected 2009 Restructurings continued
Company
Advisors
Horizon Lines
Banks
Comments
Date
Wachovia as agent
Amended EBITDA definition in conjunction with PR settlement.
Jul-09
Revolver reduced, incremental facility cancelled, pricing increased by 150 bps
Kwang Sung
Suhyup
Daewoo Logistics
Hapag-Lloyd
KfW
Possible workout
Jul-09
File for receivership
Jul-09
To receive fresh capital from shareholders. EUR350m from TUI (43% stake) and
Jul-09
EUR400m from Albert Ballin (57% stake). Also seeking EUR300m loan from
KfW and another EUR750m in state guarantees.
Golar LNG
World Shipholding
2yr unsecured financing from Fredriksen controlled company. Fixed 8% rate with
Jul-09
0.75% commitment fee. Excess of $35m drawdown requires security
Camillo Eitzen & Co
Bank syndicate has granted a waiver of covenants, postponements and reduction
(CECO)
of installments until 1 October 2009 to allow company to present long term
Jul-09
financial plan.
Danaos Corporation
Aegean Baltic Bank,
Obtained waivers for 3 credit facilities through January 2010 covering all
HSH Nordbank, Piraeus
breaches of financial covenants.
Jul-09
Bank, Dresdner Bank
Safe Bulkers
Controlling shareholder (81.6%) initiated a stock purchase program. Purchases
Jun-09
capped at 2% of o/s shares and 10.9% of float. No purchases expected currently.
Armada (Singapore)
Rajah and Tan, Holland
Pte Ltd.
& Knight, KPMG;
Re-structuring plan rejected.
Jun-09
Negotiating covenant waivers with banks. Secured “preliminary agreements”
Jun-09
Deloitte appointed as
judicial managers
B+H Ocean Carriers
Nordea, DVB
from lenders to waive total value adjusted equity ratio default.
DryShips
DnB NOR
Obtained waivers on facility covering 2 drybulk vessels for
Jun-09
$86m ofoutstanding debt
DryShips
Deutsche Bank
Waiver agreed for $1.125b facility for 2 newbuilding drillships under construction Jun-09
at Samsung to be delivered in 2011
Eastwind Maritime
Chapter 7 filing
Jun-09
Global Ship Lease
Lenders agreed to extend waiver for LTV tests through July 31.
Jun-09
During this period dividends will be suspended and margin will be 2.75%
Jaya Holdings
Tan Corporate
In process of restructuring its debts with creditors
Jun-09
Jun-09
Corporate Advisory
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Navios Maritime
NMP acquired leasehold in 'Navios Sagittarius' for $34.6M incl charter through
Holdings/Navios
2018; Converted NMP's obligation on TBN 1 to 12 month p.o. at $125m for
Maritime Partners
1M sub units.
Stolt Tankers B. V.
Cancelled 2nd of 4 NB parcel tankers citing delivery delays at SLS Shipbuilding in Jun-09
S. Korea. Refund guarantees in place.
TOP Ships
Terminated bareboat charters on 4 handymax tankers. Redelivered to
Jun-09
Icon together with a termination fee of $11.75M.
Pacific Basin Shipping
Deferred delivery of 3 RoRos by 11 mos to 2011 for 10% payment to be applied
Jun-09
to final installments when delivered.
Safe Bulkers
Cancelled Cape NB which will be substituted with another in 2010. Delayed
Jun-09
delivery of another until 2011; Total savings of $12M; Existing charterers have agreed.
DryShips
Cancelled Capesize N/B contracted for $114M for a cancellation fee of
Jun-09
$42.8M.Reduces 2009 capex by $71.2M
HSH Nordbank
Announced plan to inject $750m of new capital into company via a capitalization May-09
Americana de Vapores
Compania Sud
Freshfields
Corporate Financing
(?) of charter party commitments (400m), a new rights issue (220m) and
DryShips
DnB NOR
Obtained waivers on facility covering 2 drybulk vessels.
May-09
DryShips
HSH Nordbank
Obtained waivers on $654 million facility
May-09
Pending approval from yard and guarantors Eitzen to sell 3 remaining
May-09
renegotiation of newbuilding contracts
Eitzen
newbuilding contracts to Laurin Marine.Reduces newbuilding commitments to $0.
Marine Money
www.marinemoney.com
Selected 2009 Restructurings continued
Company
C& Heavy Industries
Advisors
Banks
Comments
Lazard, Mirae
Woori Bank
2 PE funds emerge as buyers.
Date
Apr-09
Asset Securities
Compania Sud
HSH Nordbank
Announced plan to inject $750m of new capital into company via a capitalization Apr-09
Americana de Vapores
(?) of charter party commitments (400m), a new rights issue (220m) and
renegotiation of newbuilding contracts
Compania Sud
HSH Nordbank, Celfin
Offer to buy 25% share in Agunsa rejected by Uranda Group; Shareholders
Americana de Vapores
Apr-09
meeting scheduled for end of April
Danaos Corporation
Delayed delivery of 5x8530 TEU by 200 days and 5x6,500 teu and 5x3,400 teu
Apr-09
by one quarter. Remaining capex $465m in 2009, $875m in 2010 and $785 for
2011.CF and credit availability cover 2009 and part 2010.
Eitzen Chemical
In discussions to amend debt schedule and covenants; Canceled 5 chemical carriers. Apr-09
Yard to keep $7.5m deposit and receive additional $7.5m to resulting in a $10m loss.
Eitzen Gas
In discussions to amend debt schedule and covenants; Cancellation of
Apr-09
6 newbuilding gas carriers for full and final settlement of $2.5m
JP Morgan
Distressed shipping fund seeking initial $500-$750m from institutions &
Asset Management
high net worth individuals to acquire bulkers, tankers and container ships.
Apr-09
Kanasashi Heavy
Japanese shipyard filed for creditor protection
Apr-09
Excel sponsered SPAC intends to liquidate and pay out approximately $8.27 per
Apr-09
Industries
Oceanaut
share. Excel as owner of 20% will write-off $6m of original $11m investment. Done.
SeaCo Ltd
AlixPartners LLP
Fortis, DVB
Sea Containers exits XI with maritime container interests transfered to new
Apr-09
company owned by existing bondholders, 2 UK pension funds and GE SeaCo;
$127m 5yr exit financing provided by Fortis and DVB.
Seaspan
Negotiated options to defer deliveries of 15 newbuildings for up to 15 months.
Apr-09
Temporarily reduced dividend to $0.10 reducing equity needs by approx
$320m to $360m
US Shipping Partners
Weil, Gotshal & Manges CIBC, Lehman, KeyBank
Pre-arranged Chapter XI filing with $332m senior debt affirmed at reduced
Apr-09
interest and $100m 2nd lien swapped for 50% equity. Senior lenders get
balance of equity.
Excel Maritime
Nordea (syndicate)
Covenant waivers through 2010; $150.5M principal due 2009/10 deferred to
Credit Suisse (bilateral)
2016; margins raised to 2.5% & 2.25%. $45M equity infusion from Panayotides.
Company associated
Apr-09
Distressed-asset shipping fund under consideration
Mar-09
HSH to assist in overall evaluation of business to restore profitability.
Mar-09
with John Fredriksen
Compania Sud
HSH Corporate Finance
Americana de Vapores
Eitzen Chemical
Rectified last quarter's covenant breach by receiving approval for loan agreements Mar-09
to allow higher net debt to EBITDA ratio through 2010; New margin will be 2.75%.
FreeSeas
Hellenic Carriers
Credit Suisse, FBB,
LTV waivers secured for credit facilities through 1Q and 2Q 2010;
Hollandsche Bank-Unie
Upcoming balloon refinanced with HBU; dividends discontinued
Mar-09
National Bank of Greece,
Loan restructured to ease repayments for 2 yrs
Mar-09
Cut dividends and made amendments to 6 credit facilities in efforts to
Mar-09
Piraeus Bank
Paragon Shipping
maintain liquidity
Golden Ocean
ABG Sundal
Company restructures its balance sheet and obligations; Purchases from Hemen
Collier Norge
(Fredriksen) previously aquired convertible issue; Underwrites new $100m share
ABG Sundal
Hemen Holding (Fredriksen) makes conditional offer for 2/3 of 3.625%
Collier Norge
convertible bond issue to remove market adjusted equity ratio covenant
Mar-09
issue;Yards restructure orderbook and banks make credit facilities available.
Golden Ocean
TBS International
BoA, DVB, RBS, AIG,
LTV and other covenant waivers secured through December 2009; In exchange,
Mar-09
Mar-09
Commerzbank, Berenberg new covenants added:minimum cash balace & EBITDA/Interest;
Bank, Credit Suisse
www.marinemoney.com
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Selected 2009 Restructurings continued
Company
Advisors
Banks
TBS International
Compania Sud
HSH Nordbank
Americana de Vapores
Date
Delayed 4Q earnings release pending receipt of waivers for breach of covenants
Mar-09
To sell 13% stake in Compania Chilena de Navegacion Interoceanica and
Mar-09
25% share in its subsidiary Agunsa. Postponed
Danaos Corporation
C& Heavy Industries
Comments
Lazard, Mirae
Woori Bank
Asset Securities
Global Ship Lease
Waivers sought for breach of LTV and equity covenants. Dividend suspended.
Mar-09
2 PE funds emerge as buyers.Creditors agree to extend workout by one month
Feb-09
by rolling over debt.
Fortis, Citi, HSH
LTV increased to 100% thru 4/10. Dividends restricted if over 90%.
Nordbank & DnB NOR
Margin increased by 50 bps. Amortization begins year earlier in 12/11.
Star Bulk
Feb-09
LTV waivers through 2009 obtained in exchange for cash collateral and mortgages Feb-09
on unencumbered vessels. Margin increased to 2%. Dividends and buybacks suspended.
American Commercial
Wells Fargo, Bank of
Lines
America, JPMorgan, Fortis, annual reductions thereafter. LIBOR spread increased to 550bps with annual
2 year extension of $550m facility provides for initial reduction to $475 with
National Association
50 bps increase. Fixed charge coverage and total leverage covenants tightened.
DryShips
Piraeus Bank
Failure to conclude 3 ship deal triggered restructuring.Waiver of financial
Feb-09
Feb-09
covenants, shorter tenor,reduced amortization in 2009-10 and increased margin.
Excel Maritime
Suspension of dividends concurrent with announcement of two charterers'
Feb-09
unilateral decision to reduce hire on 3 vessels by 50%.
Oceanaut
Excel sponsered SPAC intends to liquidate and pay out approximately $8.27
Feb-09
per share. Excel as owner of 20% will write-off $6m of original $11m investment.
Wighams Capital Partners
Debt restructuring advisory practice formed.
Feb-09
Feb-09
/MPC Longberry
DryShips
Nordea, DnB NOR,
Covenant waiver. Margin increased, February repayment postponed until 5/09
(Primelead/Ocean Rig)
HSH Nordbank
with regular payments resuming 8/09. Consent required for cash capex.
Golden Ocean
Cancelled contracts & charters create need for capital.Main shareholder willing, .
Feb-09
provided covenants amended to include value of charters in net worth
Safe Bulkers
Samsun Logix
Shinhan Bank
Cut dividend to prudent level. Seeks to amend LTV to include value of charters.
Feb-09
Filed for equivalent of bankruptcy protection. Genco (1 ship), DryShips and
Feb-09
Eagle exposed
Seanergy
Marfin Bank
Seanergy
Cecon
First Securities, Pareto
DnB NOR
Waiver on LTV covenant requires temporary suspension of dividends
Feb-09
Secured LTV covenant waivers with dividend supsension as quid pro quo
Feb-09
Loan withdrawan by DnB NOR after covenant breach; Advisors to assist in
Jan-09
reviewing all options open to Cecon
Korea Line Corp (KLC)
Trying to build liquidity and reducing cash outflow by renogiating charter rates
Jan-09
and cancelling newbuildings to avoid distress
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a
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Nepline
Bank Pembangunan
2 vessels and 1 newbuilding under construction seized by creditor bank after
Malaysia
default on 3 debt facilities taken out with the bank in September 2007
Schichaus Seebeck
German shipyard goes into administration after inability to pay its bills and
Shipyard (SSW)
massive debt
Jan-09
Jan-09
Armada (Singapore) Pte Ltd.
Rajah and Tan, Holland & Section 210 & Chapter 15 bankruptcy filings. Re-structuring plan due March 14. Jan-09
Oceanfreight
Nordea
Knight, KPMG
Amendment to $325 credit facility. Waiver and amendment of collateral maintenance. Jan-09
BW Group subsidiary
After purchasing 77% of BW Gas, they will consider an offer to minority
World Nordic SE
shareholders for the remaining shares so privatizing the company
DryShips
Cancels 9 capes and 3 newbuilds on order; 2nd time in 2 months DRYS pulled
Jan-09
Jan-09
out of deals to buy new vessels
Genco
DnB NOR,
Tradeoff collateral maintenance for increased pricing and amortization;
Bank of Scotland
No dividends or buybacks.
Jan-09
2
0
1
0
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