NORDIC SHIPHOLDING
Company Announcement: 11/2020
Published via NASDAQ OMX on
Loan extension & restructuring, write down and revised Outlook 2020
Loan extension & restructuring and write down
With reference to Company Announcement 10/2020 following successful negotiations between the major shareholder, management and the lenders, an agreement has been reached with the lenders for an extension of the Company’s loan facility by another year to
This loan extension and restructuring gives the Company more time to explore various scenarios, including the possibility of a merger, that to date have been negatively impacted by the effects of the Covid-19 pandemic.
In order to conclude the restructuring, the Company has agreed to pursue the sale of two vessels, i.e. the Nordic Hanne and Nordic Pia. Consequently, the Nordic Pia is now reclassified as asset-held-for sale, together with the Nordic Hanne. In this connection, the Group will recognise a further impairment loss of
The restructuring also contains deadlines for the above actions to be completed within the first half of 2021.
Key elements of the restructuring also include re-instatement of quarterly instalments from
The restructuring is subject to documentation, which is expected to be finalized before the end of 2020.
Outlook
For the rest of 2020, the Group’s five vessels will continue to be commercially deployed on a pool basis (including the vessels designated for sale). Although the product tanker market is still influenced by the aftermath of the inventory build-up earlier in the year, the TCE revenue for 2020 is forecast to remain in the region of
After accounting for operating expenditure budgeted by the respective technical managers, the Group’s forecasted EBITDA (earnings before interest, tax, depreciation and amortization) for 2020 is in the range of
Taking the above impairment loss into account, a total impairment loss of
The Company’s 2020 annual report is expected to be released on
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