TOP Ships Inc. (NasdaqGS:TOPS) took delivery of the M/T ?HONGBO? from SPP Plant & Shipbuilding Co., Ltd of the Republic of Korea.
TOP Ships Inc. (NasdaqGS:TOPS) took delivery of the M/T ?HONGBO? from SPP Plant & Shipbuilding Co., Ltd of the Republic of Korea on August 3, 2009.
The M/T ?HONGBO? is the last of six 50,000 dwt product / chemical tankers delivered within 2009. The M/T ?HONGBO? has entered into a bareboat time- charter employment for a period of 10 years at a daily gross rate of $14,550.
In addition, TOP Ships Inc. announced today that it has issued 12,512,400 shares of its common stock to its wholly-owned subsidiary, Hongbo Shipping Company Limited, which shares of stock were pledged in favor of DVB Bank America N.V. (DVB) as security for a bridge loan that DVB has provided for part of the financing of the M/T ?HONGBO.? This pledge will be terminated upon repayment of the bridge loan.
TOP Ships Inc. also received today a notification from the bareboat charterer of the M/T Papillon (ex VOC Gallant), wherein such charterer declared its intention to pay a reduced charterhire rate of $18,000 per day, rather than $24,000 per day on a bareboat basis as is set forth in the charterparty. As a result, TOP Ships Inc. believes that such charterer is in breach of the charterparty agreement, and TOP Ships Inc. has commenced arbitration proceedings against such charterer to recover amounts owed.
Finally, TOP Ships Inc. has obtained a waiver from the Royal Bank of Scotland (RBS) until March 31, 2010 in relation to the breach of certain financial covenants under the RBS term loan.