Seanergy announces $179m restructuring
(Posted on 14/01/21)
Seanergy Maritime Holdings Corp. has announced that it has reached final agreements with certain of its senior lenders and junior lender, for the financial restructuring of a total of $179 million, consisting of four senior credit facilities (the “Senior Facilities”), three junior credit facilities (the “Jelco Loans”) and three junior convertible notes (the “Jelco Notes”). Following these agreements, the previously announced defaults and cross-defaults have been fully resolved.
Pursuant to the restructuring terms, approximately $87 million of debt maturities falling due in 2020
have been extended to future periods, between December 2022 and December 2024, providing
Seanergy with a clean two-year runway. In addition, the rescheduling of the amortization payments
under certain of the Senior Facilities and the reduction of the interest rate across the junior loans and
notes are expected to have a positive impact on the cash break-even of the Company going forward.
Moreover, the Company’s lenders have agreed to cancel or amend certain financial covenants and
security maintenance provisions under the Senior Facilities allowing for additional financial flexibility,
including payment of dividends.
Stamatis Tsantanis, the Company’s Chairman and Chief Executive Officer stated:
“We are very pleased to announce the successful conclusion of the restructuring discussions with
certain of our lenders. The discussions extended since the first quarter of 2020 and were finally
concluded in an amicable manner. The agreed solutions provide Seanergy with a solid financial
standing going forward, allowing us to pursue our strategy to enhance corporate value and pave the
way to improved shareholder returns.
Under the agreed restructuring, there are no imminent loan maturities or underlying defaults, our
balance sheet has been delevered through the extinguishment of debt and accrued interest and our
future cash flow is expected to improve through reduced interest expense and debt amortization
payments in the next years. Our overall debt has seen an impressive year-over-year reduction of
$36.0 million through the restructuring initiatives and the uninterrupted servicing of the scheduled
amortization payments.
Despite the global challenges presented in 2020, we have delivered milestone transactions, including
the prominent restructuring of our debt, fleet expansion and beneficial commercial agreements.
Seanergy, as the only pure-play Capesize vessel owner listed in the US capital markets, is in a great
position to capture what we believe is significant upside potential in a rising market.”
Latest News
Chevron keeps ships sailing amid VLSFO challenges
(Posted on 19/01/21)Chevron Marine Lubricants has helped ship owner customers identify and manage a distinctive engine condition... Read more
Coles to leave Wallem
(Posted on 19/01/21)The board of Wallem Group have announced that Chief Executive Frank Coles has resigned and will be leaving... Read more
IOMSR seafarer welfare app goes live
(Posted on 14/01/21)The Isle of Man Ship Registry has formally launched the first ever seafarer welfare app designed by... Read more
DNV GL to change name to DNV
(Posted on 13/01/21)DNV GL, the assurance and risk management company, will change its name to DNV on 1 March 2021. The... Read more
Yxney Maritime and Inmarsat agreement
(Posted on 10/01/21)Norwegian-based scale-up Yxney Maritime and Inmarsat, the world leader in global, mobile satellite communications... Read more
ClassNK advises early BWMS installation
(Posted on 10/01/21)Leading Classification Society ClassNK has been analyzing the retrofitting status of ballast water management... Read more
Cybersecurity to remain a threat in 2021
(Posted on 05/01/21)The maritime industry will remain a target of cyber-criminals in 2021 and the world’s shipping... Read more
IOMSR appoints China representative
(Posted on 05/01/21)The Isle of Man Ship Registry (IOMSR) has appointed its first permanent representative in China.Well... Read more
First shipment at Khalifa Port’s South Quay
(Posted on 28/12/20)The first shipment, carrying bauxite, destined for Emirates Global Aluminium (EGA)’s Al Taweelah... Read more
Jamaica and Kenya sign STCW Certificates MOU
(Posted on 22/12/20)The Maritime Authority of Jamaica has signed a Memorandum of Understanding with the Republic of Kenya... Read more
