News tradotte dal greco:
Selective default is Greek Eletson by Standard & Poor's
From Iason Stateris
February 23, 2018 08:58
Under a selective default scheme, Standard & Poor's, the Greek shipping company Eletson Holding, downgraded its earnings week after the agreement between the company and a majority of its bondholders. Eletson, in a statement, regretted this decision, downgrading its importance, commenting on how "we understand that it reflects the usual protocol of rating agencies in such circumstances and the evaluation will come back once the process is completed."
Although the details of the Standard & Poor's judgment are not known, this decision comes after the agreement announced on 15 February by the shipping company Karastamatis, Kersikov, Hadjiheleriades with bondholders representing 80% of the liability, in respect of an interest rate bond of 9,625%, expiring in 2022, "with specific tangible terms and conditions of a proposed transaction that would enhance Eletson's liquidity," according to a company announcement.
The tolerance agreement "will allow the company and the bondholders to finalize the terms of the proposed transaction," he said in the same announcement, without giving any further details, with Eletson's Chief Financial Officer, Peter Canelos, referring to a "big positive step "To improve the liquidity of the company.
"It allows us to finalize the deal with our bondholders, which provides medium-term viability to our company, in line with our expectations for a recovery in the market for tankers," he explained.
Eletson has made it clear that during the debates with the bondholders, employees, suppliers and customers of the company will not be affected, nor its Blackstone joint venture.
It is noted that last December, Moody's downgraded Eletson's loan, citing the "very difficult" conditions in the tanker and LPG / LEG market in general, as well as the risks to the liquidity of the company from the ongoing program for the purchase of new ships aframax.
Eletson Holdings Inc. Downgraded To 'SD'; Ship Mortgage Notes Downgraded To 'D' Following Forbearance Agreement
View Analyst Contact Information
- On Feb. 16, 2018, Eletson Holdings Inc. entered a forbearance agreement
with the holders of its ship mortgage notes to suspend the coupon payment
beyond the contractual grace period.
- We consider this to be a breach of the original terms of the notes, which
we view as tantamount to default under our criteria.
- We are therefore lowering the rating on these notes to 'D' from 'CCC+'.
At the same time, we are lowering the issuer credit rating on Eletson
Holding Inc. to 'SD' (selective default) from 'CCC+'.
LONDON (S&P Global Ratings) Feb. 22, 2018--S&P Global Ratings said today that
it lowered its long-term issuer credit rating on Liberia-registered product
tanker and liquefied petroleum gas carrier owner and operator Eletson Holdings
Inc. to 'SD' (selective default) from 'CCC+'.
At the same time, we lowered the issue ratings on Eletson's $300 million
first-preferred ship mortgage notes due in 2022 to 'D' from 'CCC+'. The
recovery rating on these notes is unchanged at '3', reflecting our expectation
of meaningful (50%-70%, rounded estimate: 55%) recovery.
The downgrade follows Eletson's announcement that it has entered into a
forbearance agreement with the holders of its ship mortgage notes. This is to
suspend coupon payments beyond the 30-day contractual grace period under the
existing notes' indenture, which expired on Feb. 15. The forbearance agreement
allows Eletson and the holders to finalize the terms of the proposed exchange
offer.
The 'D' rating on the ship mortgage notes reflects the nonpayment of the
contractual coupon beyond the grace period, which we consider tantamount to a
default.
The issuer credit rating on Eletson will remain at 'SD' for the duration of
the forbearance period and is likely to remain through the proposed standstill
period. According to the information we received from the company, we
understand the company continues to meet all amortization payments on other
bank debt. We will reassess Eletson's credit profile after the company emerges
from the standstill.