Genco Shipping & Trading Ltd., the operator of dry-bulk cargo ships that’s seeking to avert bankruptcy, said it must reach a “definitive agreement” to restructure its debt by April 4 to keep new accords with lenders in place.
Genco agreed on terms for waivers or forbearances with some lenders of its 2007 credit facility, $100 million term loan portion and $235 million term loan slice through April 21, provided such a plan is concluded in time, the company said today in a regulatory filing.
The company is negotiating to stave off a Chapter 11 filing after a supply glut in the dry-bulk shipping industry pushed rates down. The New York-based shipper hired Blackstone Group LP in February to advise it on a possible restructuring. In a March 17 filing, Genco forecast a net loss of $157 million for 2013, little changed from $158 million the year before. It was unable to file its annual report for 2013 on time due to its restructuring talks, it said in that filing.
Aaron Palash, a company spokesman, declined to comment.
Genco fell 6.2 percent to $1.51 at the close in New York. The shares have plunged 40 percent this year.
Genco’s $125 million of senior unsecured convertible bonds due next year rose 2 cents to 82 cents on the dollar to yield 20.6 percent as of March 25, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.
NI DBON NI HYL NI BCY NI COR NI CORPFIN NI COS Ni CACT NI BULK NI BUSINESS NI BON NI COEVNT NI LOANS NI MARKETS NI MAR NI SHIPMARKET NI SMALLCAP NI PARTNER NI TRN NI SYNLOANS