Hurdle cleared

Grand Union has moved a step closer to a takeover of Aries Maritime after the Nasdaq listed shipowner unveiled a $145m notes issue.

Investment Bank of Greece, part of the Marfin Group, will fully underwrite the issue, which will free up cash to buy ships and repay debt.

Grand Union moved in on Aries last month but the deal is dependant on the Jeff Parry-led company improving its financial standing.

Parry, CEO of Aries, said: "This financing represents a critical step forward with respect to our strategic transaction with Grand Union.

“As we continue to make important progress towards entering definitive agreements, management remains focused on improving the operational performance and financial strength of our company."

News of the notes issue comes shortly after Aries’ auditors raised substantial doubts about the company's future for the second year in a row.

"The company has incurred a net loss, has a net working capital deficit and has not met certain of its financial covenants of debt agreements with lenders," said PricewaterhouseCoopers in Aries’ annual report.

As TradeWinds reported last month, Grand Union is poised to swap three capsize vessels for a 33% stake in Aries.

The deal is conditional on a successful notes issue and Grand Union securing amendments to an existing loan.

Grand Union owners Michael Zolotas and Nick Fistes will come is as president and chairman at Aries if the takeover is completed.

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