Ultrapetrol is working to keep lenders from pouncing after the lapse of a grace period that kept it out of default on bonds and bank debt.

The steps taken by the New York-listed shipowner aim to tackle both the bond payments and the company’s loans from International Finance Corp (IFC) and Opec Fund for International Development (OFID), whose debt deals require Ultrapetrol to remain in compliance with its bonds.

The company, which owns a diversified fleet focused on South American markets and which reported long-term financial debt of $475m in the third quarter, said it is in talks with investors in its notes to strike a standstill agreement covering the debt securities through 31 March.

The clock started on a 30-day grace period when Ultrapetrol decided not to make a 15 December interest payment.

The 8.88% notes, which are backed by ship mortgages, mature in 2021.

Forbearance deals

Argentina-based Ultrapetrol also said it struck an agreement with OFID and IFC that provides forbearance for loans by its offshore vessel subsidiaries. A tentative agreement has been reached with the same lenders on loans covering Ultrapetrol’s river barge business.

Those agreements also last until the end of March.

“During this time, the company believes that it has sufficient liquidity to fully fund all aspects of its operations and to conduct business as usual, including making full and timely payments to employees, vendors, suppliers, and trading counterparties,” Ultrapetrol said.

The forbearance deals will keep IFC and OFID from taking actions associated with a default on the bonds.