U.S. Shipping Partners misses interest payment on 13% senior secured notes

By Caroline Salls

Pittsburgh, Feb. 17 - U.S. Shipping Partners, LP did not make the $6.5 million interest payment due Feb. 15 on its 13% senior secured notes due 2014, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

The company has 30 days to make the payment before an event of default is triggered.

Failure to make the payment within the grace period would also constitute an event of default under the company's senior credit agreement.

As previously reported, U.S. Shipping Partners amended its credit facility on Feb. 12 to extend the waiver of any potential defaults under financial covenants for the quarters ended Sept. 30, 2008 and Dec. 31, 2008.

The waiver was extended until the earlier of Feb. 20 and the date on which the company makes the interest payment on its senior notes.

In addition, the company's forbearance agreement with holders of a majority-in-interest of the outstanding loans under the senior credit agreement was also extended to the earlier of Feb. 20 and the date on which the company makes an interest payment on its senior notes.

U.S. Shipping is an Edison, N.J.-based provider of long-haul marine transportation services.

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