Stolt-Nielsen loses debt waivers
The waivers of covenant defaults granted by lenders of Stolt-Nielsen S.A., the London-based tanker shipping company, expired on Tuesday (Dec. 16).
However, the company said that it and its lenders remain “in constructive discussions” aimed at establishing longer-term waivers.
Besides its financial problems, the tanker shipping company is under antitrust investigation on both sides of the Atlantic, and is being sued by Dow Chemicals.
A spokesman for Stolt-Nielsen, a company listed on the Nasdaq stock exchange, confirmed that it is behind in its debt repayments. The company said on Nov. 28 that it had received an extension on repayment of $160 million of debt until Dec. 15.
In early trading on Tuesday, the stock of Stolt-Nielsen increased 1.2 percent, to $8.55.
In October, Stolt-Nielsen reported a loss of $36.2 million on net operating revenue of $774.8 million for the quarter ended Aug. 31.
“We continue to work closely with our primary lenders toward longer-term waivers that will give us the necessary time to allow us to develop a sensible financial restructuring plan,” said Niels G. Stolt-Nielsen, chief executive officer of Stolt-Nielsen.