International Shipholding Corporation Delays Loan Payment
US shipowner International Shipholding Corporation (ISH) has reached an agreement with its lenders under which the latter would forebear from exercising any rights or remedies before July 1, 2016 with respect to various defaults under the company’s credit facility.
The company said the forbearance wold automatically terminate before July 1, 2016 if various events occur, including if other lenders decide to enforce their rights or accelerate any indebtedness under the company’s other debt instruments.
Furthermore, ISH’s four other lenders have either furnished, or expressed willingness to furnish, agreements under which they would forebear from exercising certain rights or defer certain payments through July 1, 2016.
“While the company’s three lessors have declined to furnish any similar payment relief, and thereby have retained all of their rights to declare the company in default and accelerate the company’s obligations to them under the company’s operating leases, as of the date of this release, none of the lessors have declared a default and/or accelerated the company’s obligations to them,” the company added.
The shipowner further noted that it continues to work with its financial advisor, Blackhill Partners, LLC, which is assisting the company in evaluating its various alternatives.
“The company can provide no assurance as to the outcome or timing of its current endeavors, and plans to make future announcements if and when it determines that further updates are necessary or appropriate,” ISH concluded.
International Shipholding through its subsidiaries owns a fleet of 26 vessels, including multi-purpose ships, tankers, bulkers, PCTCs, rail ferries, along with Jones Act ships.