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Concordia Maritime passes key hurdle on road to recovery

Concordia Maritime has entered into binding agreements with lending banks regarding new loan terms and conditions for eight of the company’s ten P-MAX vessels. The new terms and conditions are valid until the end of Q4 2024.

Concordia, a Stena subsidiary, revealed over the summer that its liquidity had been substantially reduced putting it at risk of breaching covenants in its loan agreements. Stena Bulk stepped up to take many Concordia tankers on long term charters.

The new agreements, announced today, have lower repayment rates and new covenant levels. Concordia intends shortly to enter into binding agreements with corresponding loan terms with the lender for the company’s remaining two P-MAX vessels.

“It is pleasing to have our new agreement finally in place. It has been a complex process with many parties involved – but we now have a financing solution for the next three and a quarter years. The new agreement and the chartering out of the P-MAX vessels are important jigsaw puzzle pieces in our efforts to improve the company’s financial position. With these pieces in place, we now look forward to moving into the next phase,” said Concordia’s CEO Kim Ullman.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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