Exhibit 10.1

 

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May 3, 2018

 

Nordea Bank AB (publ), New York Branch,

as Facility Agent,

1211 Avenue of the Americas, 23rd Floor

New York, NY 10036

Attn: Shipping, Offshore & Oil Services

Telephone:  +1 212 318 9636
Facsimile:   +1 212 421 4420
E-mail: dlny-ny-cadloan@nordea.com

 

with a copy to:

 

Essendropsgate 7

0368 Oslo, Norway

Facsimile: +47 22 48 66 78

E-mail: agency.soosid@nordea.com

 

Re:  Waiver Request

 

We refer to the facility agreement, dated as of August 31, 2015 (as amended by
Amendment No. 1, dated as of October 20, 2016, Amendment No.2, dated as of
March 24, 2017 and Amendment No.3, dated as of June 1, 2017, and as the same may
be further amended or supplemented from time to time, the “Facility Agreement”),
among (i) Gener8 Maritime Subsidiary VIII Inc., as Borrower, (ii) the companies
listed therein as joint and several Owner Guarantors and Hedge Guarantors,
(iii) Gener8 Maritime Subsidiary V Inc., as Shareholder, (iv) Gener8
Maritime, Inc., as Parent Guarantor, (v) Citibank, N.A. and Nordea Bank Finland
Plc, New York Branch as Global Co-ordinators,  (vi) Citibank, N.A. and Nordea
Bank Finland Plc, New York Branch as Bookrunners, (vii) ABN AMRO Capital USA
LLC, DNB Markets, Inc., DVB Bank SE and Skandinaviska Enskilda Banken AB as
Commercial Tranche Bookrunners (viii) Citibank, N.A., Nordea Bank Finland Plc,
New York Branch, ABN AMRO Capital USA LLC, Banco Bilbao Vizcaya Argentina, S.A.,
Seoul Branch, DNB Markets, Inc., DVB Bank SE, Skandinaviska Enskilda Banken AB
and The Export-Import Bank of Korea as Mandated Lead Arrangers,  (ix) Caixa
Bank, S.A. and Landesbank Hessen-Thueringen Girozentrale as Lead Arrangers,
(x) the banks and financial institutions listed in Part B of Schedule 1 therein
as Original Lenders, (xi) the banks and financial institutions listed in Part C
of Schedule 1 therein as Hedge Counterparties, (xii) Citibank, N.A., London
Branch as ECA Co-ordinator and ECA Agent, (xiii) Nordea Bank Finland Plc, New
York Branch as Commercial Tranche Co-ordinator, Facility Agent and Security
Agent and (xiv) The Export-Import Bank of Korea as Kexim, upon the terms and
subject to the conditions of which the Original Lenders made available to the
Borrower a term loan facility of up to (originally) $963,743,455.

 

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Unless otherwise defined in this waiver request (the “Waiver Request”),
capitalized terms used in this Waiver Request shall have the meanings set forth
in the Facility Agreement.

 

We request that, by countersigning this Waiver Request, each of the Majority
Lenders confirms its agreement to the following waiver pursuant to Clause 44
(Amendments and Waivers) of the Facility Agreement.

 

1.                                      Temporary waiver of Interest Expense
Coverage Ratio.

 

It is acknowledge and agreed among the Borrower, the Guarantors and the Majority
Lenders that for the Test Period ending on March 31, 2018 compliance by the
Parent Guarantor with the requirements of Clause 20.2 (Interest Expense Coverage
Ratio) of the Facility Agreement shall be temporarily waived.

 

The Borrower, the Guarantors and the Majority Lenders further agree that nothing
contained herein shall be deemed a waiver of the Interest Expense Coverage Ratio
as required by Clause 20.4 (Interest Expense Coverage Ratio) of the Facility
Agreement for any Test Period after March 31, 2018.

 

For the benefit of the Majority Lenders, attached hereto as Exhibit A are the
projections of the Parent Guarantor for the period Q1 2018 through Q4 2019.

 

2.                                      Conditions to effectiveness.

 

It is a condition precedent to the effectiveness of this Waiver Request that the
Facility Agent receives confirmation from the Borrower that the required parties
under the Sinosure Facility and the Re-Financing Facility Credit Agreement have
also provided their consent to a waiver similar to that described in Clause 1
hereof under each such facility.

 

3.                                      Guarantors’ confirmation.

 

Each of the Guarantors, by its signature of this Waiver Request, confirms its
consent to the waiver to the Facility Agreement set out herein and confirms that
its guarantee in Clause 17 (Guarantee and Indemnity) of the Facility Agreement
remains in full force and effect.

 

4.                                      No other waivers

 

Other than as set forth in this Waiver Request, the provisions of the Facility
Agreement shall remain unchanged and in full force and effect.

 

5.                                      Finance Document

 

It is acknowledged and agreed that this Waiver Request shall constitute a
Finance Document for purposes of the Facility Agreement.

 

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6.                                      Governing law and jurisdiction.

 

The provisions of Clause 47 (Governing Law) of the Facility Agreement shall
apply to this Waiver Request as if set out in full but so that references to
“this Agreement” are amended to read “this Waiver Request”.

 

7.                                      Execution in counterparts.

 

This Waiver Letter may be executed in counterparts.

 

 

 

Best regards,

 

 

 

GENER8 MARITIME SUBSIDIARY VIII INC.

 

as Borrower

 

 

 

 

 

By:

/s/ Leonard J. Vrondissis

 

Name:

Leonard J. Vrondissis

 

Title:

President

 

 

 

 

 

GENER8 MARITIME, INC.

 

as Parent Guarantor

 

 

 

 

 

By:

/s/ Leonard J. Vrondissis

 

Name:

Leonard J. Vrondissis

 

Title:

Executive Vice President, Chief Financial Officer and Secretary

 

 

 

GENER8 MARITIME SUBSIDIARY V INC.

 

as Shareholder

 

 

 

 

 

By:

/s/ Leonard J. Vrondissis

 

Name:

Leonard J. Vrondissis

 

Title:

President

 

 

 

GENER8 NEPTUNE LLC

 

as Owner Guarantor

 

 

 

 

 

By:

/s/ Dean Scaglione

 

Name:

Dean Scaglione

 

Title:

Manager

 

Signature Page to Gener8 Kexim Waiver Request

 

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GENER8 ATHENA LLC

 

as Owner Guarantor

 

 

 

 

 

By:

/s/ Dean Scaglione

 

Name:

Dean Scaglione

 

Title:

Manager

 

 

 

GENER8 APOLLO LLC

 

as Owner Guarantor

 

 

 

 

 

By:

/s/ Dean Scaglione

 

Name:

Dean Scaglione

 

Title:

Manager

 

 

 

GENER8 ARES LLC

 

as Owner Guarantor

 

 

 

 

 

By:

/s/ Dean Scaglione

 

Name:

Dean Scaglione

 

Title:

Manager

 

 

 

GENER8 HERA LLC

 

as Owner Guarantor

 

 

 

 

 

By:

/s/ Dean Scaglione

 

Name:

Dean Scaglione

 

Title:

Manager

 

 

 

GENER8 CONSTANTINE LLC

 

as Owner Guarantor

 

 

 

 

 

By:

/s/ Dean Scaglione

 

Name:

Dean Scaglione

 

Title:

Manager

 

Signature Page to Gener8 Kexim Waiver Request

 

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GENER8 OCEANUS LLC

 

as Owner Guarantor

 

 

 

By:

/s/ Dean Scaglione

 

Name:

Dean Scaglione

 

Title:

Manager

 

 

 

GENER8 NAUTILUS LLC

 

as Owner Guarantor

 

 

 

 

 

By:

/s/ Dean Scaglione

 

Name:

Dean Scaglione

 

Title:

Manager

 

 

 

 

GENER8 MACEDON LLC

 

as Owner Guarantor

 

 

 

 

 

By:

/s/ Dean Scaglione

 

Name:

Dean Scaglione

 

Title:

Manager

 

 

 

GENER8 NOBLE LLC

 

as Owner Guarantor

 

 

 

 

 

By:

/s/ Dean Scaglione

 

Name:

Dean Scaglione

 

Title:

Manager

 

 

 

GENER8 ETHOS LLC

 

as Owner Guarantor

 

 

 

 

 

By:

/s/ Dean Scaglione

 

Name:

Dean Scaglione

 

Title:

Manager

 

 

 

GENER8 PERSEUS LLC

 

as Owner Guarantor

 

 

 

 

 

By:

/s/ Dean Scaglione

 

Name:

Dean Scaglione

 

Title:

Manager

 

Signature Page to Gener8 Kexim Waiver Request

 

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GENER8 THESUS LLC

 

as Owner Guarantor

 

 

 

 

 

By:

/s/ Dean Scaglione

 

Name:

Dean Scaglione

 

Title:

Manager

 

 

 

GENER8 HECTOR LLC

 

as Owner Guarantor

 

 

 

 

 

By:

/s/ Dean Scaglione

 

Name:

Dean Scaglione

 

Title:

Manager

 

 

 

GENER8 NESTOR LLC

 

as Owner Guarantor

 

 

 

 

 

By:

/s/ Dean Scaglione

 

Name:

Dean Scaglione

 

Title:

Manager

 

Signature Page to Gener8 Kexim Waiver Request

 

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Accepted and agreed this 3 day of May, 2018 by:

 

 

 

 

 

NORDEA BANK AB (PUBL), NEW YORK BRANCH,

as Commercial Tranche Co-ordinator, Facility Agent and Security Agent

 

 

 

 

By:

/s/ Eric Havnvik

 

Name:

Eric Havnvik

 

Title:

Director

 

 

 

 

 

NORDEA BANK AB (PUBL), NEW YORK BRANCH

as Facility Agent acting for and on behalf of the majority of the Commercial
Lenders

 

 

By:

/s/ Eric Havnvik

 

Name:

Eric Havnvik

 

Title:

Director

 

 

 

 

 

CITIBANK, N.A., LONDON BRANCH

 

as ECA Co-ordinator and ECA Agent

 

 

 

By:

/s/ Jonathan Beasley

 

Name:

Jonathan Beasley

 

Title:

Director

 

 

 

 

 

CITIBANK, N.A., LONDON BRANCH

as ECA Agent for and on behalf of KEXIM, the majority of the KEXIM Guaranteed
Lenders and the majority of the K-Sure Lenders

 

 

By:

/s/ Jonathan Beasley

 

Name:

Jonathan Beasley

 

Title:

Director

 

 

Signature Page to Gener8 Kexim Waiver Request

 

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Accepted and agreed this 26 day of April, 2018 by:

 

 

 

ABN AMRO CAPITAL USA LLC

 

as Commercial Lender and K-Sure Lender

 

 

By:

/s/ Francis Birkeland

 

Name: Francis Birkeland

 

Title: Managing Director

 

 

Signature Page to Gener8 Kexim Waiver Request

 

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Accepted and agreed this 3 day of May, 2018 by:

 

CITIBANK, N.A., LONDON BRANCH

as Commercial Lender, KEXIM Guaranteed Lender and K-Sure Lender

 

By:

/s/ Jonathan Beasley

 

Name: Jonathan Beasley

 

Title: Director

 

 

Signature Page to Gener8 Kexim Waiver Request

 

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Accepted and agreed this 27 day of April, 2018 by:

 

DNB CAPITAL LLC

as Commercial Lender

 

By:

/s/ Cathleen Buckley

 

Name: Cathleen Buckley

 

Title: Senior Vice President

 

 

Signature Page to Gener8 Kexim Waiver Request

 

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Accepted and agreed this 3 day of May, 2018 by:

 

DVB BANK SE

as Commercial Lender

 

By:

/s/ Michiel Steeman

 

Name: Michiel Steeman

 

Title: Managing Director

 

 

Signature Page to Gener8 Kexim Waiver Request

 

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Accepted and agreed this 3 day of May, 2018 by:

 

NORDEA BANK AB (PUBL), NEW YORK BRANCH

as Commercial Lender

 

By:

/s/ Erik Havnvik

 

Name: Erik Havnvik

 

Title: Director

 

 

Signature Page to Gener8 Kexim Waiver Request

 

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Accepted and agreed this 25 day of April, 2018 by:

 

SKANDINAVISKA ENSKILDEN BANKEN AB

as Commercial Lender

 

By:

/s/ Arne Juell-Skielse

 

Name: Arne Juell-Skielse

 

Title:

 

 

Signature Page to Gener8 Kexim Waiver Request

 

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Accepted and agreed this 27 day of April, 2018 by:

 

BANCO BILBAO VIZCAYA ARGENTARIA, S.A., SEOUL BRANCH

as KEXIM Guaranteed Lender and K-Sure Lender

 

By:

/s/ Grace Li

 

Name: Grace Li

 

Title: Managing Director

 

 

Signature Page to Gener8 Kexim Waiver Request

 

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Accepted and agreed this 25 day of April, 2018 by:

 

KOMMUNAL LANDSPENSJONSKASSE GJENSIDIG FORSIKRINGSSELSKAP

as KEXIM Guaranteed Lender

 

By:

/s/ Authorized Signatory

 

Name:

Authorized Signatory

 

Title:

Senior V.P. of Accounting

 

 

Signature Page to Gener8 Kexim Waiver Request

 

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Accepted and agreed this 26 day of April, 2018 by:

 

MITSUBISHI UFJ TRUST AND BANKING CORPORATION

as KEXIM Guaranteed Lender and K-Sure Lender

 

By:

/s/ Mikio Ikegaya

 

Name:

Mikio Ikegaya

 

Title:

President and CEO

 

 

Signature Page to Gener8 Kexim Waiver Request

 

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Accepted and agreed this 3 day of May, 2018 by:

 

NONGHYUP BANK

as KEXIM Guaranteed Lender

 

By:

/s/ Young Jon Choi

 

Name:

Young Jon Choi

 

Title:

Team Head

 

 

Signature Page to Gener8 Kexim Waiver Request

 

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Accepted and agreed this 3 day of May, 2018 by:

 

CAIXABANK, S.A.

as K-Sure Lender

 

By:

/s/ Isabel Marquez

 

Name:

Isabel Marquez

 

Title:

Assistant Director

 

 

Signature Page to Gener8 Kexim Waiver Request

 

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Accepted and agreed this 3 day of May, 2018 by:

 

LANDESBANK HESSENTHUERINGEN GIROZENTRALE

as K-Sure Lender

 

By:

/s/ Elsner-Bippert Navina Lucke

 

Name:

Elsner-Bippert Navina Lucke

 

Title:

 

 

 

Signature Page to Gener8 Kexim Waiver Request

 

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Accepted and agreed this 3 day of May, 2018 by:

 

THE EXPORT-IMPORT BANK OF KOREA

as K-Sure Lender

 

By:

/s/ Chung Soun-Young

 

Name:

Chung Soun-Young

 

Title:

Director General

 

 

Signature Page to Gener8 Kexim Waiver Request

 

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Exhibit A Projections Ma r-18 Jun-18 Sep-18 Dec-18 Ma r-19 Jun-19 Sep-19 De c-19
($ in thousands, except where noted) Anal ys ts Projections Net Voyage Revenues
Opex General and Adminis trative Expens es $ 46,170 $ (23,194) (7,636) 62,393
$ (23,452) (7,636) 63,078 $ (23,710) (7,636) 63,078 $ (23,710) (7,636) 81,459
(23,542) (7,751) $ 82,369 $ (23,804) (7,751) 83,726 $ (24,065) (7,751) 83,726
(24,065) (7,751) EBITDA $ 15,340 $ 31,305 $ 31,733 $ 31,733 $ 50,166 $ 50,815
$ 51,910 $ 51,910 Maintenance Capex Cas h Interes t Expens e Free Cas h Flow
(5,891) (12,291) (687) (12,135) - (11,972) - (11,672) (2,500) (11,121) (2,500)
(10,932) - (10,729) - (10,407) $ (2,841) $ 18,482 $ 19,761 $ 20,061 $ 36,545
$ 37,383 $ 41,181 $ 41,504 Scheduled Debt Repayments Cas h Flow from Financing
(30,084) (30,069) (30,069) (30,069) (30,069) (30,069) (30,069) (30,069)
$ (30,084) $ (30,069) $ (30,069) $ (30,069) $ (30,069) $ (30,069) $ (30,069)
$ (30,069) Quarter Ending Cas h Balance (incl. WC in Pools ) $ 193,676 $ 182,089
$ 171,781 $ 161,773 $ 168,249 $ 175,563 $ 186,675 $ 198,109 Les s : Working
Capital at Pools (26,100) (26,100) (26,100) (26,100) (26,100) (26,100) (26,100)
(26,100) Quarter Ending Cas h Balance $ 167,576 $ 155,989 $ 145,681 $ 135,673
$ 142,149 $ 149,463 $ 160,575 $ 172,009 Interes t Coverage Ratio LTM EBITDA
Secured Debt Cas h Interes t $ 95,201 $ (50,231) 88,921 $ (51,658) 104,776
$ (49,483) 112,502 $ (48,070) 147,328 (46,901) $ 166,838 $ (45,697) 187,016
$ (44,454) 207,193 (43,189) EBITDA / Interes t Ratio Covenant Thres hold 1.90x
2.50x 1.72x 2.50x 2.12x 2.50x 2.34x 2.50x 3.14x 2.50x 3.65x 2.50x 4.21x 2.50x
4.80x 2.50x Cus hion / (Shortfall) Compliance? -.60x No -.78x No -.38x No -.16x
No .64x Yes 1.15x Yes 1.71x Yes 2.30x Yes *Q1 2018 rate estimates are based off
of actual earnings within the Navig8 pools. Change in Cas h$ (32,925) $ (11,587)
$ (10,308) $ (10,008) $6,476 $7,314 $ 11,112 $ 11,435 Adj. EBITDA$ 15,340
$ 31,305 $ 31,733 $ 31,733 $ 50,166 $ 50,815 $ 51,910 $ 51,910 VLCC Spot
Rate$19,476 $24,500 $ 24,500 $ 24,500 $ 32,569 $ 32,569 $32,569 $ 32,569 Suezm
ax Spot Rate$9,666 $17,125 $ 17,125 $ 17,125 $ 25,006 $ 25,006 $25,006 $ 25,006
Afram ax Spot Rate$3,617 $15,125 $ 15,125 $ 15,125 $ 20,256 $ 20,256 $20,256
$ 20,256 Panam ax Spot Rate$5,865 $13,125 $ 13,125 $ 13,125 $ 17,878 $ 17,878
$17,878 $ 17,878 GENER8 MARITIME

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