German shipping trust Marenave Schiffahrts AG has agreed with its financing banks upon the company’s restructuring. The condition for the restructuring is the sale of the entire Marenave fleet.
On March 31, the company entered into an agreement on restructuring and release of liability, and a waiver and liquidation agreement with its financing banks.
Under the terms of the agreement, Marenave will be released from all liability in connection with the obligations taken on to secure the ship financing loans and will receive a certain amount to finance its business as a going concern.
As part of the sale of the ships at a single-ship company level, the banks are set to waive under certain conditions the outstanding claims resulting from the ship financing loans to the extent that is necessary to allow for a solvent liquidation of each relevant single-ship company, Marenave said.
In part, the validity of the agreements is still subject to conditions which include the withdrawal of one financing bank, that is not a party to the agreements, as a lender.
The agreements also grant various rights of termination such as the inability to achieve certain milestones until a given deadline.
Under the investment agreement already entered into by Marenave, the release of liability is itself a key condition for bringing investors on board by way of capital measures and the conclusion of the agreements stated above now represents a major milestone to do that.
The shipping trust started its negotiations with the financing banks in late 2016 in order to avoid insolvency after it received notice from two banks financing the Marenave-fleet stating that Marenave’s restructuring concept will not be supported.
In February 2017, Marenave reached an investment agreement with Offen Group and DEVK insurance firm within its restructuring efforts.
Under the deal with CPO Investments and DEVK Allgemeine Versicherungs-Aktiengesellschaft, the investors will provide an initial financing in the minimum amount of EUR 2 million (USD 2.1 million) to be effected by way of capital measures.