Box Ships delays debt repayments

Box Ships delays debt repayments

Box Ships has announced it has reached agreements with two banks to delay the repayments of its debts.

The company has entered into an indicative term sheet with ABN AMRO Bank where the repayment instalments under the current $100m loan agreement will be deferred to the maturity of the loan in June 2017. In addition, ABN AMRO Bank has agreed to waive certain covenants under the facility.

Additionally, BoxShips has agreed to terms Credit Suisse for repayment instalments to be deferred up until the maturity of its loan in May 2017 and the covenants under the $31.65m loan agreement shall be waived up until the maturity of the loan.

“We are very pleased to have agreed in principal with our lenders the deferment of the repayment instalments, as these terms illustrate the ongoing support of our lenders and will enable us to operate our vessels at lower fixed cost break-even rates. Provided that definitive agreements are executed and all conditions are fulfilled, the company will not pay any instalments under all of its facilities until the first quarter of 2017,” said Michael Bodouroglou, chairman, president, chief executive officer and interim chief financial officer of the company.

Yesterday, Bodouroglou’s Paragon Shipping reached an agreement with Unicredit Bank to waiver $8,317,750 left in outstanding debt, in exchange for the payment of $50,000 in interest.

Jason Jiang

Jason worked for a number of logistics firms following his English degree, then switched this hands-on experience to writing and has since become one the most prolific writers on the diverse China logistics industry writing for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week. Jason’s access to the biggest shippers with business in China has proved an invaluable source of exclusives.

Related Posts