TOP Ships Inc. (NASDAQ: TOPS) announced that it has entered into a termination agreement in respect of an interest rate derivative contract for a termination payment of $5m.
TOP Ships had entered into this derivative contract in November 2007, under which the company has received an upfront payment of $8.5m and would pay five annual interest payments on a notional amount of $85m. The counterparty's assets and liabilities have been under bankruptcy administration since September 15, 2008.