Denmark-based shipowner Nordic Shipholding A/S has breached some of its loan covenants due at September 30, 2018, the company said.
As disclosed, during the third quarter of 2018 the tanker market had continued to weaken and reached levels not seen for decades.
This has resulted in a tightened cash-flow for Nordic Shipholding, making the company unable to meet its loan obligations.
“In view of the expected continued low Time Charter Equivalent (TCE) rates and depressed vessel values, there is a risk that the group may breach certain of its loan covenants as at September 30, 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,” the company said.
“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.”