Belgian shipowner Exmar has finally got its hands on a $40m loan release from Bank of China following delays due to the coronavirus outbreak.
Bank of China released the amount from a debt service reserve account linked to Exmar's Tango FLNG unit.
The move followed the steady operational results of the Tango since September 2019 under a 10-year charter with YPF in Argentina, Exmar said.
The cash will be partially allocated towards the repayment of bridge loans from Belfius and Nordea.
"The unexpected delays in the release of the $40m caused Exmar to continue to pay careful attention to the liquidity of the company," Exmar said.
But now it can cover financial commitments budgeted for in 2020, it added.
Virus impact
The outbreak of Covid-19 meant conditions could not be fulfilled for the transfer of the cash by Bank of China.
The company said in January that the lender had approved the release.
The Tango exported its second cargo in December and the third is now being produced.
But Exmar still faces a financing headache over a floating storage and regasification unit, due to trader Gunvor starting arbitration in a row relating to its charter.
Earlier this month, Exmar said it had managed to secure another extension of $30m in bridge loans for the FSRU until 29 February.
The row centres on Exmar's 25,000-cbm S188 (built 2017), listed as laid-up by Clarksons.
Last year, Exmar said the refinancing of the FSRU under a sale-and-leaseback deal with China's CSSC had been signed, but not executed yet, pending the security documentation requiring the charterer’s signature.
Exmar said Gunvor, which had a 10-year charter in place for the FSRU's use in Bangladesh, had "raised some legal arguments".
Bangladesh placed the deal in doubt in 2018 when it decided to focus on larger gas projects.
