Stena, the parent of Stockholm-listed Concordia Maritime, has come up with a rescue package for its hard-hit product tanker subsidiary.
Shareholders will vote on August 12 whether to push through with the plan that will see Stena Bulk take Concordia’s 10 P-Max product tankers on five-year time charters at $15,500 per day per ship, with Stena Sessan, Concordia’s majority shareholder, also putting up a guarantee of up to $10m to keep banks at bay. Further, during the time charter, under the deal struck with its parent, Concordia Maritime has the right to divest the entire fleet or parts thereof, without any fees, giving it the ability to take advantage of a stronger market .
Concordia explained in a release that its liquidity has been substantially reduced over the past year putting it at risk of breaching covenants in its loan agreements. Concordia has negotiated, and received, new waivers from its banks which are are valid until new terms and conditions of the financing are in place or until September 30 as well as been given deferment on parts of the amortisations to the company’s lending banks.