Ultrapetrol extends 8 7/8% note forbearance, eyes sustainable structure

By Lisa Kerner

Charlotte, N.C., April 19 – Ultrapetrol (Bahamas) Ltd. decided not to make the $10 million interest payment due Dec. 15 on its outstanding 8 7/8% first preferred ship mortgage notes due 2021 and is working with its secured lenders to negotiate a sustainable financial structure, according to chief financial officer Cecilia Yad.

The lenders extended a prior forbearance agreement by one month to April 30. Previously, the company had failed to make the $10 million interest payment due Dec. 15 and was granted a 30-day grace period.

Ultrapetrol had a healthy liquidity positon by year-end and continued to operate its business on a normal basis. This included making full and timely payments to vendors, employees, suppliers and trading counterparts, Yad said during the company’s fourth-quarter and full-year 2015 earnings conference call on Tuesday.

Ultrapetrol believes it needs to maintain a sizeable liquidity cushion to remain solvent during unpredictable downturns, according to the CFO.

The company ended the year on Dec. 31 with $45.2 million of cash and cash equivalents and $10.2 million of restricted cash, Yad said.

Full-year revenues were $347.5 million, and adjusted consolidated EBITDA totaled $53.1 million, according to the earnings release.

The Nassau, Bahamas-based shipping company had a total adjusted net loss of $40.5 million and a $0.29 adjusted net loss per share for 2015.

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