EMEA News
Norway's MPC Plans Covid-19 Debt Restructure
Norwegian container operator MPC is looking to restructure its debt in the wake of covid-19's adverse effect on business activity.
The company is seeking a cash injection of $15 million, most of which will be in return for equity.
Iin addition, it is proposing a six-month extention to its bond repayment terms.
The ship operator's financial arm, MPC Container Ships Invest, has called a meeting with its bondholders for July 3.
In a presentation to its creditors the company painted a dismal picture of the impact on the market from the pandemic.
Feeder charter rates in May were down 24% compared to January's rates while idle boxship capacity continued to increase in May, according to the presentation.
"Combination of uncertainty, challenging financing markets, declining charter rates and emergence of distressed sellers will drive down asset values and may trigger a breach of LTV (loan-to-value) covenants," the company said.
On an operational front, the company said it had completed its ten planned scrubber retrofits. "Secured long-term scrubber-related employments serve as important contributor to earnings visibility in current market environment," the company added.
MPC controls a 68 vessel fleet.
