TOP Ships in talks with lenders on loan waivers of non-compliance with covenants

By Sara Rosenberg

New York, April 2 - TOP Ships Inc. is in advanced discussions with its bank group about getting waivers through the end of March 2010 of non-compliance with loan covenants as of Dec. 31, according to a news release.

If the company is not able to obtain covenant waivers or modifications, lenders may require the posting of additional collateral, equity and liquidity enhancements, increases in interest payments or a paydown of the debt, the selling of vessels, or the debt may be accelerated.

As of Dec. 31, the company had total debt under its senior secured credit facility of $346.9 million.

Royal Bank of Scotland, HSH Nordbank, DVB Bank, Alpha Bank and Emporiki Bank are the lenders under the deal.

TOP Ships is an Athens, Greece-based provider of seaborne crude oil and petroleum products and drybulk transportation services.

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