Nigel Lowry, Athens - Friday 5 December 2008
NASDAQ-listed Star Bulk Carriers has become the latest publicly quoted dry bulk operator to warn on potential problems if the current crisis persists.
“If vessel values continue to decline, we may not be in compliance with certain provisions of our term loan agreements and we may not be able to refinance our debt or obtain additional financing.
Now, in a transcript from the conference call of Nov. 25 quoted by Seeking Alpha
At this time, we also have a liquidity of over $50 million in cash, a moderate debt level compared to our peers and strong cash flow generation. We face no issues with our loan covenants and enjoy an excellent working relationship with our lending institutions. We don not have commitments to purchase newbuilding vessels or similar capital expenditures that would require us to obtain additional financing. Therefore, we are confidence in our ability to meet our financial commitments for the foreseeable future.
My, what a difference a couple of weeks makes. But honestly, I didn't read all 10 pages of the transcipt, so maybe they back peddled on this statement somewhere later.
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