MPC Container Ships has requested a bondholders’ meeting in respect of its USD 200,000,000 senior secured bond issue, in the context of proposing certain amendments to the terms of the Bond.
The background for the proposed amendments to the terms of the Bond is the adverse impact on the MPCC group’s liquidity which the COVID-19 pandemic has had, and continues to have, by causing significantly reduced charter rates and utilisation of the group’s fleet due to lower containerized freight volumes.
DNB Markets, a part of DNB Bank ASA, and Pareto Securities AS have been appointed as financial advisors to MPC Container Ships ASA and MPC Container Ships Invest B.V.
The restructuring and recapitalization plan aims to strengthen the company’s balance sheet and bridge the short-term liquidity requirements.
The key components regard $15 million in new cash equity plus additional cash equity from any subsequent repair issue.
Moreover, the company is seeking amendments for its bonds, including waivers, extended maturity, and payment-in-kind interests.
If these actions do not take place, the company warns that the market situation is expected to adversely impact its ability to be in compliance with financial covenants in its bonds and other financial arrangements.
