Gas carrier owner Exmar has seen part of a loan suspended as it fights to recover $30.3m it says is owed by the charterer of its Tango FLNG unit.
Argentina's YPF declared force majeure on the contract for the floating LNG production vessel in June, claiming the Covid-19 pandemic both worldwide and in Argentina has hindered its ability to perform its obligations under the agreements.
Exmar said in its first-half earnings report that since the last payment received in June for production in March, further payments have been suspended.
The Belgian company has made a $17.7m provision in its accounts, while adding that $24.1m of the owed revenue is overdue.
As a result of the payment halt, part of the revolving credit facility of €18m ($21.3m) granted by KBC, BNP Fortis and Belfius has been temporarily suspended.
Exmar added that despite the dispute, the board is confident that management will be able to "maintain sufficient liquidities to meet its commitments and therefore it has an appropriate basis for the use of the going concern assumption".
Covenants maintained
The shipowner met all its financial covenants as at 30 June, and expects to be in compliance by the end of the year.
Barge-based Tango FLNG was the success story Exmar had been waiting for after several years of ill-fated investments and problems.
YPF chartered the unit in November 2018 for 10 years under a tolling agreement relating to LNG production.
A first cargo was exported a year ago with the LNG floater producing around five shipments in total.
Gunvor row goes on
Meanwhile, Exmar continues to undergo arbitration over a charter for its 25,000-cbm floating storage and regasification barge FSRU S188 (built 2017) with trading giant Gunvor.
Gunvor continues to pay charter hire for the vessel, and Exmar said it assumes that the contract remains in full force.
Last year, Exmar said the refinancing of the unit under a sale-and-leaseback deal with China's CSSC had been signed, but not yet executed, 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
In March this year, Exmar had said it had enough liquidity to meet its needs and obligations up until the end of 2020, boosted by the Bank of China releasing a $40m loan for the Tango FLNG.
This money was used to pay down debt.
