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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.

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.
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