Genco misses payment

US-listed Genco Shipping & Trading has missed a bond interest payment as it revealed it remained in talks with lenders over fundraising and debt restructuring.
Peter Georgiopoulos

Peter Georgiopoulos

The Peter Georgiopoulos-chaired bulker owner said it failed to hand over a $3.1m semi-annual instalment on Tuesday for its 5% convertible senior notes due 2015.

While it has a 30-day period of grace for the notes before being in default, the missed payment may constitute a default under the terms of its $100m 2010 loan facility, it added.

Lenders involved have given it a short-term waiver until 21 March.

As part of the deal, Genco pre-paid $1.9m due on the loan on 31 March

The company added: “As a result of the continued weakness in charter rates and required payment of debt obligations of, and expenditures by, the company, the company is using the grace period to review its financing options and is currently considering various alternatives with respect to the restructuring of its capital structure.”

Talks with lenders and noteholders are ongoing.

Options include seeking additional liquidity through amendments or refinancings of existing debt, converting debt into equity, more debt or share sales and selling some or all of the business, with a Chapter 11 bankruptcy filing also possible.

Genco said cash in the bank stood at $74.7m.

Genco Ship & Trade
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