U.S. Shipping gets loan forbearance of defaults

By Sara Rosenberg

New York, March 19 - U.S. Shipping Partners LP got a forbearance agreement under its credit facility regarding certain defaults, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

The forbearance covers the company's failure to make the Dec. 31 and expected failure to make the March 31 principal and interest payments under the credit facility, failure to be in compliance with financial covenants at Sept. 30 and Dec. 31, and failure to make the scheduled interest payment on its senior notes by March 17.

The forbearance was effective as of March 13 and expires on April 30.

During the term of the forbearance agreement, the company has agreed to engage in good faith negotiations with CIBC, the administrative agent, and the lenders regarding restructuring and strategic alternatives.

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

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