Denmark's Nordic Shipholding is looking to the future after finally selling a handysize and extending its loan facility for another year.
The Nasdaq OMX-listed company said it had agreed to offload the 38,000-dwt Nordic Hanne (built 2007) last week to an unnamed buyer for $7.85m.
VesselsValue estimates the ship to be worth $10.63m.
Nordic put the handysize up for sale in August last year as it looked to bolster its finances.
The Knud Pontoppidan-chaired product carrier specialist booked an impairment loss on the tanker of $2m in the first half.
A second ship — the 38,000-dwt tanker Nordic Pia (built 2006) — has now been put up for sale as part of the financial restructuring. This means another impairment loss of $2m.
VesselsValue estimates the vessel to be worth $9.67m.
Another year to pay
The company's banks have pushed out maturity on $90.2m of borrowings to the end of this year. The amount was previously due at the close of 2020.
"This loan extension and restructuring gives the company more time to explore various scenarios, including the possibility of a merger, that to date have been negatively impacted by the effects of the Covid-19 pandemic," Nordic said.
In addition, Nordic's major shareholder — Nordic Maritime — has agreed to extend a bank guarantee worth $3.85m until early 2022.
Quarterly instalments had been frozen, but must now be resumed at an unchanged interest rate.
Nordic said covenants securing a minimum liquidity have also been agreed, which should allow operations to continue.
Three ships left
Nordic will be left with two handysizes and an LR1, which will continue to operate in pools.
The company added: "Although the product tanker market is still influenced by the aftermath of the inventory build-up earlier in [2020], the TCE revenue for 2020 is forecast to remain in the region of $27m to $29m."
Ebitda for last year is expected to come in between $13m and $15m.
However, a total impairment loss of $12.6m will be booked.
This will give a pre-tax loss in the $7m and $9m range.
For the nine months ended 30 September, the company's net loss was $3.9m, against a loss of $4.7m in 2019.
