Seanergy Maritime Holdings Corp. announced that it has entered into a delivery and settlement agreement with its remaining lender to unwind its final credit facility. Under this agreement, the company will sell its four vessels to a nominee of the lender in full satisfaction of the underlying loan. The four vessels are the bulk carriers M/V Bremen Max, M/V Hamburg Max, M/V Davakis G and M/V Delos Ranger.
Upon the closing of the transaction, approximately $145 million of outstanding debt and accrued interest will be discharged and the company’s guarantee will be fully released. After giving effect to the transaction, the overall indebtedness of the Seanergy group of companies will be extinguished. The agreement is subject to the standard closing process for the sale of the vessels and is expected to close by the end of the first quarter.
The company further announced that the Nasdaq Hearings Panel has granted the company’s request for continued listing on the Nasdaq Stock Market through April 28, 2014, to allow it to regain compliance with the Nasdaq minimum shareholders’ equity requirement. Seanergy is evaluating available options to resolve the deficiency and regain compliance in accordance with the Nasdaq’s requirement. Stamatis Tsantanis, the company’s Chief Executive Officer, stated, “We are very pleased to have reached agreement with our final lender to complete our financial restructuring plan after a long and demanding process. Since the beginning of 2012, in a challenging market environment, we have managed to extinguish $346 million of debt and completely transforming our balance sheet. We expect that the company will be in a substantially stronger position to pursue future growth through accretive transactions. Turning to the company’s listing with Nasdaq, we are pleased to announce that we were granted an approval for continued listing on the Nasdaq Stock Market until April 28, 2014. By that time we expect to be in position to meet Nasdaq’s requirements and remain listed in order to proceed with our plan to grow the company.”