Globus Maritime Gets a Breather from Lenders

Image Courtesy: Globus Maritime

Greece-based dry bulk shipping company Globus Maritime Limited said that it has reached agreements with DVB Bank and HSH Nordbank AG to amend and waiver some of its loan facilities due in 2017.

In March 2017, the company reached agreements in principle with the two lenders to amend the loan agreements, including amendments to relax or waive certain covenants for both facilities for the period from April 2017 to April 2018.

The said loans are dated on June 20, 2011 and February 27, 2015, respectively.

 “Our agreements with both DVB Bank and HSH Nordbank AG to gain waiver relaxations of our financial covenants as well as the deferrals in our installment loan payments gives the company a breather and allows us to concentrate in our operational activities and plan ahead,” Athanasios “Thanos” Feidakis, President, CEO and Chief Financial Officer of the company said.

The company has five vessels trading on the spot charter market, making it vulnerable to declining market rates for spot charters and to the off-hire periods including ballast passages. As such, the company added that it may also decide to lay up one or more vessels.

“Further declines of market values of our vessels may affect our ability to comply with various covenants and could also limit the amount of funds we are permitted to borrow under our current or future loan arrangements,” the company said in its financial report for 2016.

If the company is unable to comply with the financial and other covenants under its loan agreements the lenders could foreclose on vessels in the company’s fleet.

Globus Maritime posted USD 9.8 million loss in 2016 against USD 32.3 million loss booked in 2015.

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