Western Bulk has reached an agreement with its banks and certain vessel owners for an amendment to financial covenants for some loan agreements and related bareboat charter and time charter contracts. The company has also obtained pre-acceptance from the majority of its bondholders to ease financial covenants.
Citing the weak market outlook, Oslo-listed Western Bulk had earlier in the day admitted it risked breaching its financial covenants by the end of 2015. Consequently, a recapitalisation plan has been launched whereby it is looking to raise $15m in additional equity through a partially guaranteed rights offering.
Western Bulk also admitted it might find it a challenge to get its bank to agree a new overdraft facility. “[T]he outcome of this process is uncertain,” the Norwegian firm revealed.
Western Bulk released its results as the Baltic Dry Index stood at record lows and fears of a bulker bloodbath grow.