Loan weight lifted

OceanFreight said Monday that it has forged an agreement with lenders to ease vessel value requirements in a credit facility

The deal with lenders led by Nordea Bank will amend and waive covenants governing collateral – the company's ships – in a $325m senior secured credit facility.

"Our proactive approach with our bankers has allowed us to enter into this amendment to our loan agreement and achieve a lower collateral maintenance coverage ratio in light of the recent decline in vessel values, particularly in the dry-bulk sector," chief executive Anthony Kandylidis said.

Plunging bulk carrier prices have led analysts to warn that many owners are potentially in default of covenants connected to vessel values.

Nasdaq-listed OceanFreight, an Athens-based owner of nine bulkers and four tankers, suspended its dividend in December, leading one analyst to question whether the move had been forced by lenders.

"Given the challenging financial and shipping landscape, this agreement places one uncertainty behind us and positions us to capitalise on opportunities as they may arise in the future," he said.

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