U.S. Shipping credit agreement waiver, notes payment forbearances extended to Feb. 27

By Caroline Salls

Pittsburgh, Feb. 27 - U.S. Shipping Partners LP has obtained extensions to its credit agreement financial covenant default waiver and notes payment forbearance agreement, according to an 8-K filed Friday with the Securities and Exchange Commission.

Specifically, the credit agreement lenders have agreed to extend the waiver of any potential financial covenant defaults for the quarters ended Sept. 30 and Dec. 31 through the earlier of Feb. 27 and the date the company makes an interest payment on its senior notes.

Meanwhile, the holders of a majority-in-interest of the outstanding loans under the senior credit agreement extended the forbearance termination date to the earliest of 5 p.m. ET on Feb. 27, the date the company makes the interest payment on its senior notes, the occurrence or continuance of any other event of default and the failure by the company to comply with any of the forbearance agreement provisions.

The waiver and forbearance agreement were both previously scheduled to expire on Feb. 20.

In connection with the forbearance agreement, U.S. Shipping said it is in negotiations with the credit agreement administrative agent and the lenders regarding restructuring and strategic alternatives.

As previously reported, the company did not make the $6.5 million interest payment due Feb. 15 on its 13% senior secured notes due 2014.

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

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