ContainersEuropeFinance and Insurance

Diana Containerships won’t buy new vessels or pay dividends for two years

Diana Containerships has amended its $148m loan agreement with The Royal Bank of Scotland (RBS), which will block the boxship company from buying new ships and paying dividends to shareholders until late 2018.

In amending the RBS loan, the boxship company is prohibited from increasing its indebtedness (with the exception of intra-group debt) or buying new vessels until September 15, 2018.

Repayment of a tranche of $8,851,000 of the loan will be deferred and will commence on March 15, 2019.

Diana Containerships will not pay dividends until after this deferred tranche is repaid or September 15, 2018, whichever occurs later.

The NASDAQ-listed company has agreed to prepay by Thursday $7,606,750 of the RBS loan, which is dated September 10, 2015.

Quarterly repayments of the RBS loan will be deferred until September 15, 2017, after which the first four repayments will be reduced, the company said.

The minimum security covenant of the RBS loan has also been reduced from 140% to 125% of the aggregate amount of the loan outstanding until September 30, 2018.

Diana Containerships has also made certain amendments to its $50m loan agreement with Diana Shipping.

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Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.

Comments

  1. You know what amaze me about Companies: Like Diana Containerships, In General, They Screw The Stockholders, Each Times for firm mistakes, By Over buying and Then come up with some piss poor excuse when their a Downturn in business? da, Which by the way, it only been with us Since 2007?, So Diana Container, should of learned that by know, da? Then Diana Containerships, Re-financed their loans with RBS, and Say I’m “Withholding Dividends For Two, (2) Years”?? Really, Please Don’t Forget who put Diana Containerships where you are today, They invest in firm they believed in. I am wondering from a legal position if the Stockholders can sue Diana Containerships, Because you are, reneging on promise deal with your stockholders, which in turn are true investors like banks, but banks get paid first, I, think that should be revised.

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