Genco Shipping & Trading Limited(NYSE:GNK) Troubles Bubbles Over

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Dallas, Texas 03/21/2014 (FINANCIALSTRENDS) –  Genco Shipping & Trading Limited (NYSE:GNK) reported on 20th December through a SEC filing that it had gone ahead and made a payment of $3.1 million to its lenders in order to fulfil its loan term obligations, as per which the firm had to make its first of the pre-agreed twice a year instalment payout before 18th February’13. The loan attracted a interest component of 5 percent and is due to be satisfied before 15th August of next year.

The firm has also disclosed to the regulators that it is working closely with its lenders to work out a mechanism which would allow the firm to restate its debt obligations to new dates. It is appropriate to note here that the company had defaulted on paying the $3.1 million payout in February and had been forced to seek the good offices of Blackstone Advisory Partners LP to help it renegotiate the loan terms. The lenders in good faith had agreed to waive their option to en-cash on the default, and had given the company a grace period to come good with the first instalment of the semi annual payout.

In its detailed update to SEC on the full episode, Genco Shipping & Trading Limited (NYSE:GNK) had submitted that, “As a result of the continued weakness in charter rates and required payment of debt obligations” and expenditures, we are using a 30-day period to review our financing options and ways to reorganize our capital structure.”

The dry cargo, bulk operator has also disclosed that it had postponed its 4Q results announcement, in order to give it more flexibility in its ongoing restricting discussions. It has gone on record to specify that the options it is considering include swapping debt for equity, raising more capital from the market, selling off of part of its assets and or going in for voluntary bankruptcy protection.

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