Eitzen Chemical ASA has signed amended agreements with its banks that secure additional improvements to its loan agreements.
Eitzen Chemical ASA is pleased to announce that the company has signed amended agreements with its banks that secure additional improvements to its loan agreements relative to the agreement which was announced on 1 October 2009. Further reference is made to previous announcements regarding the financial restructuring of Eitzen Chemical.
Under the revised terms, all main debt maturities have now been extended to July 2014. As earlier, all fixed instalments will be suspended until November 2012, with a potential for variable debt amortisation depending on Eitzen Chemical's financial performance. From November 2012 to maturity, fixed quarterly instalments will apply.
As per the earlier agreement, all existing financial covenants, with the exception of a new minimum cash covenant to be introduced from the first quarter of 2010 and a new minimum value-to-loan covenant to be introduced from the first quarter of 2011, have been suspended, and this suspension will now apply until the new maturity dates.
The company has called for an extraordinary general meeting (EGM) to be held on 26 November 2009 at 12:00 CET to resolve the equity issue. As a result of the new agreements with the banks, there are now no other conditions for completion of the equity issue than approval by shareholders in the EGM.
"This concludes the financial restructuring of Eitzen Chemical, only conditional upon approval of the equity issue at the up-coming EGM. The restructuring started with the cancellation of the newbuilding program earlier this year. This facilitated the agreement with the bondholders in September and the USD 115 mill. equity issue completed earlier this month, and was finalized with the agreement with our banks today. We are confident the robust financial platform following the restructuring, coupled with the company's modern fleet and strong market position will be a solid basis for creating shareholder value and safeguarding our various stakeholders going forward", said Terje Askvig, CEO of Eitzen Chemical.
Eitzen Chemical is an industrial carrier of petrochemical and related cargos with a total fleet of 84 vessels. 62 vessels are owned and leased, and a further 22 vessels are operated for partners.