India’s Eassar Shipping is making plans to delay its debt payment by extending its loans with its lenders, The Hindu has reported.
“We are negotiating with lenders for prolongation of the loan tenure which will provide us comfort to service the loans. We are looking to enhance the loan tenure from 8 years now to 20 years depending on the life of the asset,” said Captain Anup Kumar Sharma, managing director, Essar Shipping.
“The shipping industry underwent a very bad phase in the past few years and is yet to recover. This created a problem for the whole industry, including us,” he said.
The company currently has a debt of Rs 3,000 crore ($446m) and it is expected to restructure its overseas borrowings, which accounts for 75% of its total debts, through easier repayment terms.
Eassar Shipping has 15 dry bulk and tanker vessels in its fleet and over 60 percent of the capacity is deployed for group companies including Essar Steel and Essar Oil.
“We are open to acquisitions of distressed sale assets to enhance the fleet strength provided we get a good deal,” said Captain Sharma.