Dubai-based Gulf Navigation Holding has restructured a 200 million dirhams ($54.4 million) loan, its biggest, with Australis Maritime Limited.
The value of the debt has been rescheduled so that the cost of debt will be reduced by 25 percent, or the equivalent of 4 million dirhams, in savings annually, the maritime and shipping company said in a disclosure to the Dubai Financial Market, where it is listed.
The company said it has fully paid all its obligations to Abu Dhabi Commercial Bank, thus reducing the company's overall debt.
It is now working on reaching an agreement with its other lenders “on new and flexible terms that will allow the company to adapt to the current market conditions. Furthermore, it has made major changes to the operating model and reduced administrative expenses.”
Earlier this month, Dubai’s only crude shipper said its net loss for 2020 narrowed to 279 million dirhams compared to a net loss of 327 million dirhams in 2019.
Gulf Navigation is currently studying several options to expand and increase its maritime fleet, whether through new acquisitions or mergers, in line with the company's strategy that aims to expand its business locally and in the GCC, as well as entering into strategic partnerships which will improve shareholder value.
The company hopes the debt restructuring and fleet expansion will see it turn to profitability in 2021.
(Writing by Brinda Darasha; editing by Seban Scaria)
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