Navios Holdings, Navios Acquisition Axe Loan following Lawsuit

Navios Maritime Holdings Inc. and Navios Maritime Acquisition Corporation have terminated the USD 50 million loan agreement, pursuant to which Navios Acquisition provided a secured revolving loan facility to Navios Holdings in March 2016.

No borrowings had been made under the revolver facility, the companies said.

The move comes in the aftermath of a lawsuit filed by Metropolitan Capital Advisors International, a shareholder in Navios Acquisition.

Namely, Metropolitan, which holds some 234,500 shares in Navios Acquisition along with its founder Jeffrey E. Schwarz, urged the court to block the drawdown of the agreed loan or to seek a return of the any amount paid.

“The Boards of Navios Holdings and Navios Acquisition believe that the process for, and terms of, the revolver were fair, and that litigation challenging it is without merit.  However, the Board of Directors of Navios Holdings determined that Navios Holdings does not currently need access to the revolver, and the board of each company determined it was in such company’s best interests to avoid expensive and unnecessary litigation,” a joint statement reads.

Under the terms of the agreement between Navios Maritime and Navios Acquisition, the loan facility was due to be repaid on December 31, 2018, and had an interest rate based on LIBOR plus of 3% per annum.

The loan was expected to be used for general purposes.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Nov 2019 >>
MTWTFSS
28 29 30 31 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 1

Maritime Reconnaissance and Surveillance Technology

As varied threats in the Mediterranean Sea continue to proliferate, the need to advance…

read more >

CrewConnect Global 2019

CrewConnect Global is the leading forum for collaboration to advance new industry approaches to seafarer recruitment and training.

read more >

CruiseConnect Global 2019

Attend CrewConnect Global and stay on for the CruiseConnect Summit to take part in an industry-wide conversation focused…

read more >

CWC World LNG Summit & Awards Evening

The CWC World LNG Summit & Awards Evening will be returning to Rome in 2019 to celebrate it’s 20th year.

read more >