Danish tanker operator Nordic Shipholding has breached some of its loan convenants, citing the dire freight rate market.
“In view of the expected continued low TCE rates and depressed vessel values, there is a risk that the Group may breach certain of its loan covenants as at 30 September 2018. Management is actively negotiating with its main shareholder and its lenders to reduce this risk through the implementation of various strategies and increased liquidity measures. These measures are expected to be in place before the end of Q4 2018, and therefore the Interim Report H1 2018 is presented on a going concern basis,” the company stated in a release.
Nordic Shipholding owns six product tanker vessels, five handysize tankers and one LR1.