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Navios scraps controversial loan agreement

Navios Maritime Holdings and Navios Maritime Acquisition Corporation have terminated a controversial loan agreement signed by the two companies in March. No borrowings had been made under the revolver.

Under the loan agreement, Navios Maritime Acquisition Corporation agreed to provide a revolving loan facility of up to $50m to Navios Maritime Holdings, a move that sparked litigation threats from investors, who felt the move to shore up dry bulk operations by taking $50m from a tanker sister firm would hit the valuation of the latter. Ten days ago a lawsuit was tabled by two investors against the loan move, something that looks to have sparked the Angeliki Frangou-led group to recant.

Navios said in a release it was ditching the financial transaction as it was in both companies’ “best interests to avoid expensive and unnecessary litigation”.

J Mintzmyer, president of Mintzmyer Investments, a vocal critic of the loan, told Splash: “This is victory for the small investor.”In a report last month for the website Seeking Alpha, Mintzmyer had described the loan as a “total disgrace”.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.
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