Ultrapetrol bondholders agree to extend forbearance period
Ultrapetrol has won approval from bondholders to hold off enforcement action related to its 8.875% first preferred ship mortgage notes due 2021 until after March 31.
The NASDAQ-listed shipping company won consent from holders of 99.27% of the outstanding notes, which have an aggregate principal amount of $223,348,000. Ultrapetrol missed a $10m payment due on the notes during December.
Each holder that submitted a forbearance form will receive $8.954635 per $1000 in aggregate principal amount of notes held, Ultrapetrol said.
Tentative forbearance agreements are also awaiting approval from creditors IFC and OFID regarding loans to Ultrapetrol’s river business. A payment of $6.5m was due in December on interest and principal payments on the loans.
Ultrapetrol said in December it had sufficient liquidity with which to make the two missed payments, but opted to hold off until it had negotiated with its creditors to refinance and restructure its debt.