Royal Olympic Cruise Lines Inc announced that Silk Navigation had acquired an additional 20 percent of ROC Holdings Inc. from Louis Tourist Agency. As a result, Silk and Louis each now hold 50 percent of ROC Holdings, which in turn holds 51.4% of Royal Olympic's common stock. Silk Navigation is controlled by members of the Potamianos family, with Andreas Potamianos holding the position as Royal Olympic's Co-Deputy Chairman and Louis Tourist Agency is controlled by Costakis Loizou, also Co-Deputy Chairman.
In addition, Royal Olympic announced
that it had agreed with Louis Tourist Agency to modify the terms of the $20 million convertible subordinated note issued by Royal Olympic on February 28, 2001 and held by Louis Tourist Agency.
The terms of the note had contemplated that it was to be repaid on or before June 30, 2002 from the proceeds of a rights offering of common stock to all shareholders. In the event a rights offering was not completed on or before June 30, 2002, the note had provided for conversion to common stock at a price per share equal to the average trading price during the first six months of 2002. Royal Olympic and Louis Tourist Agency have agreed to extend the date for the note's repayment or conversion to March 31, 2003, with conversion to common stock at a price equal to the average trading price during the previous fifteen months.
Commenting on the postponement of the rights offer, Royal Olympic CEO Yiannos Pantazis said "Given the current adverse effect on the tourist industry following the events of September 11 and the situation in the Middle East, our board concluded, and Louis Tourist Agency agreed, that this is not an appropriate time for a rights offering."