Star Bulk gets extra breathing space from banks

Star Bulk gets extra breathing space from banks

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.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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2 Comments

  1. Avatar
    Paul Slater
    June 30, 2016 at 2:17 pm

    A temporary deal. They need to sell the entire fleet asap before it get any worse. Revenues do not cover true operating expenses.

  2. Sam Chambers
    Sam Chambers
    June 30, 2016 at 2:32 pm

    The $3,500 operating costs are certainly questionable …