NEW YORK, Oct. 3, 2011 /PRNewswire/ -- General Maritime
Corporation (NYSE: GMR) announced today that it has entered into
amendments (the "Credit Agreement Amendments") to its $550 million revolving credit facility (the "2011
Credit Facility"), its $372 million
term loan facility (the "2010 Credit Facility") and its
$200 million credit facility (the
"Oaktree Credit Facility," and together with the 2011 Credit
Facility and the 2010 Credit Facility, the "Credit Facilities")
with affiliates of Oaktree Capital Management, L.P.
("Oaktree").
The Credit Agreement Amendments waive the covenant regarding
required minimum balance in cash, cash equivalents and revolver
availability (the "Minimum Cash Balance Covenant") under each of
the Credit Facilities through November 10,
2011, unless an event of default under any such Credit
Facility occurs prior to such date.
Under the terms of the amendment to the 2010 Credit Facility,
the amortization payment made on September
30, 2011 (the "Amortization Payment") will be used to pay
down the revolver loans in lieu of the term loans. The amount of
the Amortization Payment may be reborrowed, subject to the
satisfaction of certain conditions.
The Company also announced it continues to review its financing
options and is currently considering various alternatives with
respect to the restructuring of its capital structure. As a result,
General Maritime has commenced discussions with its lenders and
other creditors concerning a potential restructuring of its
indebtedness. There can be no assurance that the Company will be
able to reach agreement with its lenders and other creditors on a
consensual restructuring of its capital structure.
Jeffrey D. Pribor, Chief
Financial Officer of General Maritime Corporation, stated,
"Management continues to take proactive measures to increase the
Company's financial flexibility during a challenging market
environment. We appreciate the ongoing support from our
distinguished lending group and remain focused on pursuing
opportunities to further strengthen our capital structure."
As previously disclosed, in connection with the Oaktree
transactions, Peter C.
Georgiopoulos, the Company's Chairman, was granted an
interest in a limited partnership that holds Oaktree's investment
in the Company. Mr. Georgiopoulos intends to assign this
limited partnership interest to the Company without any
consideration from the Company. Mr. Georgiopoulos determined
to take this step on his own initiative in order to eliminate any
appearance that, as a result of this holding, his interests are not
aligned with those of the Company and to emphasize his focus on
achieving a positive result for the Company in the current
environment. The Oaktree transactions were the result of an
extensive process, overseen by an independent committee of the
Company's Board of Directors, and its financial and legal advisors.
The assignment of the limited partnership interest remains subject
to Oaktree's consent.
Additional information on the Credit Agreement Amendments and
other events is available on the Company's Current Report on Form
8-K filed today with the Securities and Exchange Commission.
About General Maritime Corporation
General Maritime Corporation is a leading crude and products
tanker company serving principally within the Atlantic basin, which
includes ports in the Caribbean,
South and Central America,
the United States, West Africa, the Mediterranean, Europe and the North Sea. General Maritime
also currently operates tankers in other regions including the
Black Sea and Far East. General Maritime owns a fully double-hull
fleet of 31 tankers – seven VLCC, nine Aframax, twelve Suezmax
tankers, two Panamax and one product tanker – with a total carrying
capacity of approximately 5.2 million dwt. The Company also has
three product tankers that are chartered-in with options to
purchase the vessels. The Company controls tonnage totaling 5.3
million dwt, including the owned fleet and the chartered-in
fleet.
"Safe Harbor" Statement Under the Private Securities
Litigation Reform Act of 1995
This press release contains forward-looking statements made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
based on management's current expectations and observations and
include factors that could cause actual results to differ
materially such as: the Company's ability to borrow under the
credit facilities; the Company's ability to timely and effectively
implement and execute its plans to restructure its capital
structure; the Company's ability to arrange and consummate
financing or sale transactions or to access capital; the extent to
which the Company's operating results continue to be affected by
weakness in market conditions and charter rates; whether the
Company is able to generate sufficient cash flows to meet its
liquidity needs, service its indebtedness and finance the ongoing
obligations of its business and other factors listed from time to
time in the Company's filings with the Securities and Exchange
Commission, including, without limitation, its Annual Report on
Form 10-K for the year ended December 31,
2010 and subsequent filings on Form 10-Q and Form
8-K.
This press release is not an offer to purchase or sell, or a
solicitation of an offer to purchase or sell any securities of the
Company.
SOURCE General Maritime Corporation