Wednesday, November 30, 2011

Global Ship Lease -suspends dividends

Global Ship Lease announced their lenders have waived the loan-to-value test
for a year, and during this time GSL will not pay dividends.

My question is, who are these "lenders", (although perhaps it is buried in the SEC filing somewhere).

Considering CMA CGM was the one who started this company, selling off ships with lease-back agreements, I would guess they might also be one of the lenders.

If you know, please post a comment.

From Reuters

Wed Nov 30, 2011 10:07am EST

* Says lenders to waive loan-to-value test until Nov 30, 2012

* Says will not pay dividends during the waiver period

* Shares up 12 pct

Nov 30 (Reuters) - Global Ship Lease Inc said its lenders have agreed to extend a key requirement under its credit facility by a year, amid a downturn in containership markets.

Shares of London-based Global Ship Lease, which had touched a year-low of $1.62 on Tuesday, were trading up 12 percent at $1.87 on Wednesday on the New York Stock Exchange.

The company had expected its loan-to-value, a ratio of outstanding borrowings to the aggregate charter-free market value of the secured vessels, would exceed the 75 percent limit.

The company, which charters vessels to shipping companies, said it will not be able to pay dividends during the period of the waiver.

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