Genco Shipping Says Still in Talks With Creditors to Restructure

Genco Shipping & Trading Ltd. (GNK), the operator of dry-bulk cargo ships that’s trying to avert bankruptcy, said it’s still in talks with creditors as it seeks to restructure debt.

The New York-based shipper today reached agreements for waivers or forbearances with some lenders of its 2007 credit facility, $100 million term loan portion and $235 million term loan slice, the company said in a regulatory filing after the close of regular trading.

Genco hired Blackstone Group LP in February to advise it on a possible restructuring. The dry-bulk shipping industry has been rebounding from a glut in supply that’s contributed to weak rates.

The agreements will allow talks to continue into next month without the need to seek bankruptcy protection, Genco said. Genco shares rose 4.1 percent to $1.76 at the close in New York. They’ve declined 30 percent this year.

The company was unable to file its annual report for 2013 on time due to its restructuring talks, it said in a March 17 filing. Genco forecast a net loss of $157 million for 2013, little changed from $158 million the year before.

To contact the reporter on this story: Lauren Coleman-Lochner in New York at llochner@bloomberg.net

To contact the editors responsible for this story: Faris Khan at fkhan33@bloomberg.net Chapin Wright

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