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Ships’ lower prices causes Nordic Shipholding to breach loan covenant

Logistic News - Published on Wed, 03 Oct 2018

Image Source: Bunker Ports News Worldwide
As mentioned in Company announcement there was a risk that the Company may breach certain of its loan covenants as at 30 September 2018. Below please find the relevant quote from the Company Announcement 07/2018. “In view of the expected continued low TCE rates and depressed vessel values, there is a risk that the Group may breach certain of its loan covenants as at 30 September 2018. Management is actively negotiating with its main shareholder and its lenders to reduce this risk through the implementation of various strategies and increased liquidity measures. These measures are expected to be in place before the end of Q4 2018, and therefore the Interim Report H1 2018 is presented on a going concern basis.”

During Q3 2018 the tanker market had continued to weaken and reached levels not seen for decades. This has caused a tightened cash-flow position for the Company and eventually resulted in certain of the Company’s loan covenants not being met by 30 September 2018.

The management is actively negotiating with its main shareholder and its lenders to resolve the situation and shall revert with further information as soon as available.

Source :

Posted By : Joykumar Irom on Wed, 03 Oct 2018
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