Hong Kong-based shipping company Jinhui Shipping and Transportation Limited has reached an agreement with four major lenders on loans related to 25 of the company’s vessels.
Namely, under the deal the intercreditor deed between the company, 25 subsidiaries as borrowers of relevant vessel mortgage deal and the lenders, only 50% of the instalments due until the end of 2018 will be repaid, while the remaining amount will be repaid within two days after the end of the forbearance period in 2019.
The company added that any asset coverage ratio covenant and financial covenant are waived and suspended during the forbearance period.
“The rescheduling of indebtness would allow the group to preserve liquidity and financial resourced to weather the unprecedented storm in dry bulk shipping market,” Jinui said.
As of September 30, Jinhui Shipping’s vessel mortgage loans stood at USD 263.1 million.