B+H Ocean Carriers Ltd. Announces Obtaining Waivers of Certain Loan Covenant Breaches as of December 31, 2008, & Applying for...
03 July 2009 - 6:38AM
Business Wire
B+H Ocean Carriers Ltd. (AMEX: BHO) reported that
on June 30 it had made application for a 15 day extension for the
filing of its 20-F report including its financial statements for
the period ended December 31, 2008. The Company also announced that
it had been advised by certain of its banks that they had approved
the waivers that had been requested for certain technical loan
covenant defaults as of December 31, 2008. The Company stated that
it had requested these waivers in May 2009, in the belief that
obtaining these waivers would lead to an unqualified audit for the
year ending December 31, 2008, with no reclassification of long
term debt as short term debt, and no going concern issue. However,
the Company said that during June, it was advised by its auditors
that, notwithstanding that waivers were being approved for the loan
covenant breaches in place December 31, 2008, given the continuing
deterioration of the shipping markets and the passage of time from
year end to the issuance of their opinion, they would review all of
the Company�s loan covenants for potential technical covenant
breaches during 2009. The Company stated that there is a
possibility for such prospective breaches during 2009,
notwithstanding that no unwaived breaches are in place for the
period ending December 31, 2008. It added that this possibility may
require the Company to state its balance sheet reflecting the
auditors� view that during 2009, some or all of the Company�s
indebtedness may become subject to acceleration. The Company stated
that it will continue to work with its banks to obtain waivers of
loan covenant breaches if and when they occur, and that it expects
any such efforts will be successful, as was the recent round of
waiver requests. The Company further said that it does not believe
that its indebtedness will be accelerated by its lenders, should
further loan covenant breaches be incurred. The Company intends to
file its Form 20-F for the year ended December 31, 2008 by July 15,
2009.
About B+H Ocean Carriers Ltd.
The Company was organized as a corporation under Liberian law on
April 28, 1988 to engage in the business of acquiring, investing
in, owning, operating and selling vessels for dry bulk and liquid
cargo transportation. As of June 30, 2009, the Company owned and
operated two dry bulkcarriers, four medium-range product/chemical
tankers, one Panamax product tanker and five ore/bulk/oil
combination carriers (�OBOs�). The Company also owns a 50% interest
in a company which is the disponent owner of a 1992-built 75,000
DWT Combination Carrier, effected through a lease structure. Each
vessel accounts for a significant portion of the Company�s
revenues. On July 29, 2008, the Company, through a wholly-owned
subsidiary, acquired an Accommodation Field Development Vessel
(�AFDV�) under construction, for delivery in the 1st quarter of
2010.
Safe Harbor Statement
Certain statements contained in this press release, including,
without limitation, statements containing the words �believes,�
�anticipates,� �expects,� �intends,� and words of similar import,
constitute �forward-looking statements� as defined in the Private
Securities Litigation Reform Act of 1995 or by the Securities and
Exchange Commission in its rules, regulations and releases,
regarding the Company�s financial and business prospects. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of the Company, or industry results, to
be materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Such factors include, but are not limited to, those set
forth in the Company�s Annual Report and filings with the
Securities and Exchange Committee. Given these uncertainties, undue
reliance should not be placed on such forward-looking statements.
The Company disclaims any obligation to update any such factors or
to publicly announce the result of any revisions to any of the
forward-looking statements contained or incorporation by reference
herein to reflect future events or developments.
For further information, including the Company�s 2007 Annual
Report on Form 20F and previous announcements, access the Company�s
website: www.bhocean.com.
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