Embattled Star Bulk has won a two-month extra standstill agreement from its banks.
The line, which has offloaded nine ships this year, to keep creditors at bay released its latest quarterly results yesterday.
Petros Pappas, Star Bulk’s ceo, said: “In the last few months we have entered into negotiations with our banks, with which we have long standing relationships, to defer principal payments and waive or substantially relax financial covenants, so as to preserve liquidity well into 2019. In order to finalize these discussions and relevant documentation, we have entered into standstill agreements covering debt principal repayments as well as certain covenants with our lenders for a period of three months ending on August 31 2016.”
Pappas described the first quarter as “the worst of the last 30 years”, as freight rates remained below operating costs and vessel values reached new lows across all dry bulk vessel classes.
He claimed daily opex costs for the Star Bulk fleet excluding pre-delivery expenses now stood at just $3,591.