News

Announcement No. 6, 2017

May 16 2017
Topics

Improved markets

“Despite market improvements in Q1, dry cargo markets continue to be challenging”, says CEO Mads P. Zacho, adding that “we are pleased that the market for smaller gas carriers saw some improvements in the first quarter of 2017.”

Main events

  • Organisational and cost adjustments were implemented to improve our competitive position.
  • After the balance date, a new agreement was obtained with our core lenders and our owner, Lauritzen Fonden, regarding the financing package announced at the release of the 2016 Annual Report. The new agreement (announced on 11 April 2017) now includes a USDm 80 capital injection from our owner to ensure the repayment of the outstanding JLA02 corporate bond and the related hedging debt when these fall due in October 2017. The new agreement continues i.a. to include a four-year amortization reduction and maturity extension to 2021 by core bank creditors. The revised agreement, which is subject to satisfactory final documentation, will substantially strengthen our balance sheet and reduce our financing cost.

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