Document:

Exhibit 10.4

 

To:                             GENCO SHIPPING & TRADING LIMITED, a borrower organised and existing under the laws of the Republic of the Marshall Islands (the “Borrower”) for itself and as agent for each of the other Obligors party to the Facility Agreement (as defined below)

 

For the attention of: Apostolos Zafolias

 

28 April 2015

 

Dear Sirs

 

Facility agreement dated 12 August 2010 made between (i) the Borrower, (ii) the banks and financial institutions listed in Schedule I thereto as Lenders (iii) the Guarantors listed in Schedule 2 thereto and (iv) Crédit Agricole Corporate and Investment Bank in its capacity both as Agent and Security Trustee (as amended and restated on 9 July 2014 and amended and/or restated from time to time) (the “Facility Agreement”).

 

1.                                      BACKGROUND

 

(a)                                 We refer to the letter dated 18 March 2015 from the Borrower to the Agent regarding a request for the waiver and amendment of various terms of the Facility Agreement (the “Request Letter”). We understand that:

 

(i)                                     the Borrower has requested a waiver and amendments of certain of its obligations under clause 12 (Undertakings) of the Facility Agreement; and

 

(ii)                                  the Borrower and / or certain of its Subsidiaries are to be provided with a $150,000,000 revolving credit facility by ABN AMRO Capital USA LLC as original lender (the “RCF”).

 

(b)                                 In accordance with the instructions of the Majority Lenders, the purpose of this waiver and amendment letter (the “letter”) is to give effect to the waiver and amendments contained herein.

 

OPERATIVE PROVISIONS:

 

2.                                      INTERPRETATION

 

(a)                                 Capitalised terms defined in the Facility Agreement have the same meaning when used in this letter unless expressly defined in this letter.

 

(b)                                 The term “Effective Date” means the date on which each of the following conditions have been satisfied:

 

(i)                                     we confirm to the Borrower that we have received an acknowledgement and agreement to the terms of this letter signed by each Obligor; and

 

 

(ii)                                  a waiver and/or amendment agreement waiving and/or amending those terms of the DB Credit Facility similar to the waiver and/or amendment on the terms set forth in paragraphs 5(b) (and the applicable defined terms in paragraphs 5(c) relating thereto), 5(f) and 5(g) of this letter shall have become effective.

 

(c)                                  The provisions of clause 1.2 (Construction of certain terms) of the Facility Agreement apply to this letter as though they were set out in full in this letter with all necessary consequential changes and with references in that clause to the Facility Agreement being construed as references to this letter.

 

3.                                      CAPACITY

 

The waiver and amendments contained in this letter are granted by us in our capacity as Agent under the Facility Agreement, acting (where required) on the instructions of the Majority Lenders pursuant to clause 26 (Variations and Waivers) of the Facility Agreement.

 

4.                                      WAIVER

 

With effect from the Effective Date, the requirement to test the Consolidated Interest Coverage Ratio pursuant to clause 12.2(e) shall be waived during the period commencing on the Effective Date and expiring on 31 December 2016 (inclusive).

 

5.                                      AMENDMENT

 

With effect from the Effective Date the Facility Agreement shall be amended as follows:

 

(a)                                 The definition of “Appraised Value” in clause 1.1 (Definitions) of the Facility Agreement shall be deleted and replaced with the following:

 

“Appraised Value” of any Vessel or as applicable, any other Fleet Vessel, at any time shall mean the value of such vessel as determined in accordance with clause 16.3 or clause 16.9 as the case may be;

 

(b)                                 The definition of “Leverage Ratio” in clause 1.1 (Definitions) of the Facility Agreement shall be deleted and replaced with the following:

 

““Leverage Ratio” means, at any date of determination, the ratio of Consolidated Indebtedness (less any undrawn working capital lines) on such date of determination to Value Adjusted Total Assets”;

 

(c)                                  Clause 1.1 (Definitions) shall be amended by inserting the following new definition in alphabetical order:

 

““Approved RCF” means the $150,000,000 secured revolving credit facility to be provided to the Borrower and / or certain of its Subsidiaries with ABN AMRO Capital USA LLC as arranger, agent, security trustee and original lender.

 

 

“Fleet Market Value” means the aggregate Appraised Value of the Fleet Vessels.

 

“Fleet Vessels” means any vessel from time to time owned by the Borrower and its Subsidiaries as they appear in the then most recent financial statements delivered pursuant to clause 12.1(a) and “Fleet Vessel” means any one of them.

 

“Total Assets” means the consolidated amount which is equal to the total assets of the Borrower and its Subsidiaries as shown in the applicable financial statements.

 

“Value Adjusted Total Assets” means the Total Assets adjusted in each case for the difference of the book value of the Fleet Vessels (as evidenced in the most recent financial statements delivered pursuant to clause 12.1(a)) and the Fleet Market Value.

 

“Waiver Period” means the period during which the requirement to test the Consolidated Interest Cover Ratio is waived pursuant to an amendment and waiver letter dated on or around 2015 between, amongst others, the Agent and the Borrower and as such waiver period may be extended in writing by the Agent.”

 

(d)                                 The definition of “Subsidiary” in clause 1.1 (Definitions) of the Facility Agreement shall be amended by adding the following to the end thereof: “so long as the Borrower does not own more than 50% of the economic interests in Baltic”.

 

(e)                                  Clause 12.2(h)(iii) (Indebtedness) of the Facility Agreement shall be amended by inserting the words “, the Approved RCF (and for the avoidance of doubt, any utilisation of the Approved RCF would not constitute a new incurrence of Indebtedness provided that such utilisation would not result in an immediate Event of Default)” immediately after the words “DB Credit Facility”.

 

(f)                                   Clause 12.2(m) (Fleet Minimum Liquidity) shall be amended by inserting the words “ For the purposes of the calculation of Fleet Minimum Liquidity under this Clause 12.2(m), amounts of readily available but undrawn committed working capital lines with a remaining availability period of more than 6 months including amounts unutilised by the Borrower and / or its Subsidiaries under the Approved RCF may be taken into account up to a maximum of 50% of the required free cash amount.”

 

(g)                                  Clause 12.2(d) (Maximum Leverage Ratio) shall be amended by the deletion of the words “5.50:1.00” which shall be replaced with the words “70%”.

 

(h)                                 Clause 12.2(g) (Dividends) sub-clause (ii) and sub-clause (iii) shall be amended by inserting the words “only after the expiry of the Wavier Period,” immediately before the words “so long as no Potential Event of Default or Event of Default has occurred and is continuing” in each of those sub-clauses.

 

 

(i)                                     Clause 16 (Security Cover) shall be amended by the insertion of the following new clause 16.9;

 

“Appraisal of Fleet Vessels: The Appraised Value of a Fleet Vessel other than a Mortgaged Vessel shall be determined pursuant to any required methodology and brokers approved in accordance with any contractual obligation addressing the manner in which such Fleet Vessel is to be appraised or valued (or if there is no such other required methodology, in a manner mutually acceptable to the Borrower and the Agent), provided that: (i) such Appraised Value shall be at the relevant date, the value shown by a valuation carried out by a third party appraiser not more than 6 months previously; (ii) the appraisal is carried out with or without physical inspection of the relevant Fleet Vessel (as the Agent may require); and (ii) such appraisal methodology is on the basis of a sale for prompt delivery for cash on normal arm’s length commercial terms as between a willing seller and a willing buyer, free from any existing charter or other contract.”

 

6.                                      RESERVATION OF RIGHTS

 

Save as expressly set out in this letter, this letter does not (and shall not be deemed to) constitute a waiver in respect of the provisions of any Finance Document or any breach thereof. Each Finance Party reserves any right or remedy it has now or in the future in respect of any Default which (i) arises from any circumstances other than those described in paragraph 1(a) or which is continuing as at the expiry of the period referred to in paragraph 4

 

7.                                      CONFIRMATIONS

 

Without prejudice to the rights of any Creditor Party which have arisen on or before the Effective Date:

 

(a)                                 each Creditor Party and each Obligor confirms that the Facility Agreement, as amended by this letter, remains in full force and effect on and after the Effective Date; and

 

(b)                                 each Guarantor confirms that its guarantee and indemnity under clause 9 (Guarantee and Indemnity) of the Facility Agreement and its liabilities under the Security Documents to which it is a party shall have effect on and after the Effective Date in relation to the liabilities of each Obligor under the Facility Agreement as amended and restated under this letter.

 

8.                                      REPRESENTATIONS AND WARRANTIES

 

As at the Effective Date, each Obligor represents and warrants to each Creditor Party that:

 

(a)                                 the repeating representations contained in clause 11.1 and 11.2 (Representations) of the Facility Agreement are true and correct; and

 

 

(b)                                 the information supplied in the Request Letter is true, accurate and complete.

 

9.                                      DESIGNATION AND EFFECT

 

This letter is a Finance Document and any breach of this letter by an Obligor shall constitute an Event of Default.

 

10.                               AMENDMENT FEE

 

The Borrower shall pay an amendment fee in accordance with the fee letter between the Agent and the Borrower dated on or around the date hereof.

 

11.                               THIRD PARTY RIGHTS

 

This letter does not confer any rights on any person or party (other than the signatories to this letter) under the Contracts (Rights of Third Parties) Act 1999.

 

12.                               COUNTERPARTS

 

This letter may be executed in counterparts. This has the same effect as if the signatures on the counterparts were on a single copy of this letter.

 

13.                               GOVERNING LAW AND JURISDICTION

 

This letter and any dispute or claim arising out of or in connection with it or its subject matter, whether of a contractual or non-contractual nature, shall be governed by and construed in accordance with the law of England and Wales.  The courts of England and Wales shall have exclusive jurisdiction to settle any dispute arising out of or in connection with this letter.

 

 

SIGNATORIES

 

	
 
    	
)
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    	
 
    	
 
    
	
for and on   behalf of CRÉDIT AGRICOLE CORPORATE AND INVESTMENT   BANK as
   Agent and Security Agent and for and on behalf of
   the Majority Lenders as defined in the Facility
   Agreement
    	
)
    	
/s/ Jerome   Duval
    	
 
    	
/s/ Michael Choina
    
	
)
    	
Jerome Duval
    	
 
    	
Michael Choina
    
	
)
    	
Managing   Director
    	
 
    	
Director
    
	
)

)
    	
 
    	
 
    	
 
    

 

 

 

[On counterpart]

 

30 April 2015

 

We agree with the terms of this letter.

 

BORROWER

 

	
SIGNED by Apostolos Zafolias
    	
) 
    	
 
    
	
for and on behalf of GENCO   SHIPPING & 
    	
)
    	
/s/ Apostolos   Zafolias
    
	
TRADING LIMITED
    	
)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
GUARANTORS
    	
 
    
	
 
    	
 
    
	
SIGNED by Apostolos Zafolias
    	
)
    	
 
    
	
for and on behalf of GENCO BAY LIMITED
    	
)
    	
/s/ Apostolos Zafolias
    
	
 
    	
)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
SIGNED by Apostolos Zafolias
    	
)
    	
 
    
	
for and on   behalf of GENCO OCEAN LIMITED
    	
)
    	
/s/ Apostolos   Zafolias
    
	
 
    	
)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
SIGNED by Apostolos Zafolias
    	
) 
    	
 
    
	
for and on   behalf of GENCO AVRA LIMITED
    	
)
    	
/s/ Apostolos   Zafolias
    
	
 
    	
)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
SIGNED by Apostolos Zafolias
    	
)
    	
 
    
	
for and on   behalf of GENCO MARE LIMITED
    	
)
    	
/s/ Apostolos   Zafolias
    
	
 
    	
)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
SIGNED by Apostolos Zafolias
    	
)
    	
 
    
	
for and on   behalf of GENCO SPIRIT LIMITED
    	
)
    	
/s/ Apostolos   Zafolias
    
	
 
    	
)
    	
 
    
	
 
    	
 
    
	
SIGNED by Apostolos Zafolias
    	
)
    	
 
    
	
for and on   behalf of GENCO SUGAR LIMITED
    	
)
    	
/s/ Apostolos   Zafolias
    
	
 
    	
)Exhibit 10.5

 

To:                     Genco Shipping & Trading Limited

 

Copy:      Genco Lorraine Limited

Genco Pyrenees Limited

Genco Loire Limited

Genco Bourgogne Limited

Genco Picardy Limited

Genco Aquitaine Limited

Genco Normandy Limited

Genco Auvergne Limited

Genco Provence Limited

Genco Ardennes Limited

Genco Brittany Limited

Genco Languedoc Limited

Genco Rhone Limited

 

30 April 2015

 

Dear Sirs

 

US$253,000,000 secured loan agreement dated 20 August 2010 (as supplemented by a first side letter dated 24 August 2010, as further supplemented by a letter dated 21 December 2011, as amended and restated by a second supplemental agreement dated 1 August 2012 and as amended and restated by a third supplemental agreement dated 9 July 2014, the “Loan Agreement”) made between (1) Genco Shipping & Trading Limited as borrower, (2) the Lenders (as defined therein), (3) Deutsche Bank AG Filiale Deutschlandgeschäft, BNP Paribas, Credit Agricole Corporate and Investment Bank, DVB Bank SE and Skandinaviska Enskilda Banken AB (publ) as mandated lead arrangers, (4) ourselves as agent for the Lenders, (5) BNP Paribas, Credit Agricole Corporate and Investment Bank, Deutsche Bank AG, DVB Bank SE and Skandinaviska Enskilda Banken AB (publ) as swap providers (the “Swap Providers”) and (vi) Deutsche Bank AG Filiale Deutschlandgeschäft as security agent for the Lenders and the Swap Providers and as bookrunner.

 

All terms and expressions used in this letter shall have the same meaning given to them in the Loan Agreement unless defined herein.

 

This letter is designated as a Finance Document.  This letter replaces our letter dated 28 April 2015 sent to you on 28 April 2015.

 

We refer to the Loan Agreement and to your letter to us dated 18 March 2015 requesting from the Lenders (i) a temporary waiver of the Consolidated Interest Coverage Ratio in clause 12.2.2 (Consolidated Interest Coverage Ratio) of the Loan Agreement commencing on 30 June 2015 through and including the fiscal quarter ending December 31, 2016 (the “Waiver Period”), (ii) a permanent waiver of the Leverage Ratio in clause 12.2.3 (Maximum Leverage Ratio) of the Loan Agreement for the remainder of the Facility Period, (iii) a consent to permit amounts of readily

 

 

available but committed undrawn working capital lines with a remaining availability period of more than 6 months (the “Undrawn Working Capital Lines”) to be taken into account up to a maximum of 50% of the required free cash amount in the calculation of the minimum free cash requirement under clause 12.2.1(b) of the Loan Agreement and (iv) a consent to the provisions of the relevant clauses of each Assignment such that the requirements for such specific assignments apply only to charters or other contracts for the operation, employment or use of the Vessel exceeding (including any extension options) twenty-four (24) months’ duration (the “Assignment Consent”), subject to certain conditions.

 

The waivers and consents referred to in (i) — (iv) (inclusive) above shall be referred to herein as the “Specified Waiver”.

 

We hereby:

 

(1) agree to waive your compliance with (i) the Consolidated Interest Coverage Ratio in clause 12.2.2 (Consolidated Interest Coverage Ratio) of the Loan Agreement during the Waiver Period and (ii) the Leverage Ratio in clause 12.2.3 (Maximum Leverage Ratio) of the Loan Agreement during the remainder of the Facility Period;

 

(2) consent to Undrawn Working Capital Lines to be taken into account up to a maximum of 50% of the required free cash amount in the calculation of the minimum free cash requirement set forth in clause 12.2.1(b) of the Loan Agreement; and

 

(3) consent to the Assignment Consent;

 

subject to the following conditions:

 

(a)         the waiver in (1) above and the consent in (2)  above shall only become effective upon a waiver and/or amendment agreement waiving and/or amending those terms of the Metrostar Loan Agreement similar to the waiver and the consents contained in (1) and (2) above becoming effective;

 

(b)         on the day of this letter, you provide us with a copy (with an original to follow) of a certificate from a duly authorised officer of each Security Party confirming that none of the documents delivered to the Agent pursuant to Part I of Schedule 2 (Conditions Precedent to a Drawdown Notice), sections 1 (Security Parties), 2 (Security and related documents) (except 2(b) and 2(c)), as well as (b) and (c) of section 3 (Other documents and evidence), and Part II of Schedule 2 (Conditions Precedent to the making of a Drawing) sections 4 (Security Parties) and (a), (c) and (g) of section 5 (Security and related documents) of the Loan Agreement have been amended or modified in any way since the date of their delivery to the Agent, or copies, certified by a duly authorised officer of the Security Party in question as true, complete and accurate and neither as amended nor revoked, of any which have been amended or modified;

 

(c)          on the day of this letter, you provide us with a copy, certified by a director or the secretary of each Security Party as true, complete and accurate and neither amended nor revoked, of a resolution of the directors of that Security Party (together, where appropriate, with signed waivers of notice of any directors’ meetings) approving, and authorising or ratifying the

 

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execution of, the duplicate of this letter and any document to be executed by that Security Party pursuant to this letter;

 

(d)         within two (2) Business Days of the date of this letter, you pay us (for the account of the Lenders having consented to the Waiver in proportion to their respective Commitments) a waiver fee of zero point twenty five per cent (0.25%) on the outstanding amount of the Loan;

 

(e)          during the Waiver Period, you will not authorize, declare or pay any Dividends with respect to the Borrower, notwithstanding the provisions of clause 12.3.13 of the Loan Agreement;

 

(f)           during the Facility Period, you will not permit the Leverage Ratio, as of the last day of any fiscal quarter during such period commencing with the fiscal quarter ending on 30 June 2015, to be greater than 70% (where “Leverage Ratio” means, at any date of determination, the ratio of Consolidated Indebtedness (less any undrawn working capital lines) on such date of determination to Value Adjusted Total Assets, “Total Assets” means the consolidated amount which is equal to the total assets of the Borrower and its Subsidiaries as shown in the applicable financial statements, “Value Adjusted Total Assets” means the Total Assets adjusted in each case for the difference of the book value of the Fleet Vessels (as calculated in the most recent financial statements delivered pursuant to clause 12.1.3(a)) and the Fleet Market Value, “Fleet Market Value” means the aggregate Fleet Fair Market Value of the Fleet Vessels where “Fleet Fair Market Value” means the market value of a Fleet Vessel determined pursuant to any required methodology in accordance with any contractual obligations addressing the manner in which such Fleet Vessel is to be appraised or valued (or if there is, no such required methodology, in a manner mutually acceptable to the Borrower and the Agent).  All valuations of any Fleet Vessel shall be made on the basis of a charter-free sale for prompt delivery for cash at arm’s length on normal commercial terms as between a willing buyer and willing seller by an Approved Broker appointed by the Agent or such approved broker as defined in the relevant loan facilities to the Borrower or any Subsidiary or Subsidiaries of the Borrower, and “Fleet Vessels” means any vessel from time to time owned by the Borrower or its Subsidiaries as they appear in the then most recent financial statements delivered pursuant to clause 12.1.3(a) and “Fleet Vessel” means any one of them;

 

(g)          within 60 days of the date of this letter you shall procure that the owners (the “Additional Collateral Owners”) of the vessels “GENCO THUNDER”, “GENCO RAPTOR”, “GENCO MUSE” and “GENCO CHALLENGER” (the “Additional Collateral Vessels”) grant to the Security Agent guarantees of your obligations under the Loan Agreement in the same form as the Guarantees given by the Collateral Owners (save for the logical changes) and as security for such guarantees execute in favour of the Security Agent mortgages over the Additional Collateral Vessels and assignments of the earnings, insurances and requisition compensation of the Additional Collateral Vessels to be in the same form as the Mortgages and Assignments in respect of the Vessels (save for the logical changes) together with all of the documents and other evidence listed in Parts I and II of Schedule 2 (Conditions Precedent and Subsequent) of the Loan Agreement required by the Agent in relation to the Additional Collateral Vessels and Additional Collateral Owners (as logically amended);

 

(h)         within fourteen (14) Business Days of receipt of an invoice in respect of any legal fees due from you in connection with this letter, evidence that such invoice has been paid in full; and

 

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(i)             at least sixty million United States Dollar (US$60,000,000) have been committed and/or drawn down under and pursuant to the one hundred and fifty million United States Dollar (US$150,000,000) revolving credit facility agreement made between, amongst others, ABN Amro Capital USA LLC and certain subsidiaries of Genco Shipping & Trading Limited.

 

If any of the above conditions (a) to (i) (inclusive) is not complied with then the Specified Waiver shall cease to apply with immediate effect. Any breach of condition (e), (f), (g) or (i) shall constitute an Event of Default. No such Event of Default will occur if the failure to comply is capable of remedy and is remedied within ten (10) Business Days of the Agent giving notice to the Borrower or the Borrower becoming aware of the failure to comply.

 

For the avoidance of doubt, save as set out in this letter, all the Lenders’ rights powers and remedies under the Loan Agreement are reserved in full and remain in full force and effect both during and after the Waiver Period.

 

Each Security Party confirms that any Encumbrance created and/or any guarantee granted by the Security Parties in favour of any of the Finance Parties remains in full force and effect and is not in any way affected by this letter.

 

This letter may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of this letter.

 

This letter and any non-contractual obligations arising out of or in connection with it shall be governed by and construed in accordance with English law.

 

Please confirm your agreement to the terms of this letter by signing and returning a duplicate of this letter to us.

 

Yours faithfully,

 

 

	
For and on behalf   of
    	
 
    	
 
    
	
Deutsche   Bank Luxembourg S.A.
    	
 
    	
 
    
	
(as Agent acting   on the instructions of the Majority Lenders)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Marlene Heinemann
    	
 
    	
/s/ Franz-Josef   Ewerhardy
    
	
 
    	
 
    	
 
    
	
Marlene Heinemann
    	
 
    	
Franz-Josef   Ewerhardy
    

 

4

 

Confirmed and agreed on 30 April 2015

for an on behalf of

 

 

	
/s/ Apostolos   Zafolias
    	
 
    	
 
    
	
Genco   Shipping & Trading Limited
    	
 
    	
 
    
	
(as Borrower)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Apostolos   Zafolias
    	
 
    	
 
    
	
Genco   Lorraine Limited
    	
 
    	
 
    
	
Genco   Pyrenees Limited
    	
 
    	
 
    
	
Genco   Loire Limited
    	
 
    	
 
    
	
Genco   Bourgogne Limited
    	
 
    	
 
    
	
Genco   Picardy Limited
    	
 
    	
 
    
	
Genco   Aquitaine Limited
    	
 
    	
 
    
	
Genco   Normandy Limited
    	
 
    	
 
    
	
Genco   Auvergne Limited
    	
 
    	
 
    
	
Genco   Provence Limited
    	
 
    	
 
    
	
Genco   Ardennes Limited
    	
 
    	
 
    
	
Genco   Brittany Limited
    	
 
    	
 
    
	
Genco   Languedoc Limited
    	
 
    	
 
    
	
Genco   Rhone Limited
    	
 
    	
 
    
	
(as Collateral   Owners and Guarantors)
    	
 
    	
 
    

 

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