Document:

Exhibit 10.3

 

Deutsche Bank

 

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

 

10 March2016

 

Dear Sirs

 

US$253,000,000 secured loan agreement dated 20 August 2010 (as amended by a side letter dated 24 August 2010, as further amended by a waiver letter dated 20 December 2011, as further amended and restated on 1 August 2012, as further amended and restated on 9 July 2014 and as further amended, supplemented or restated from time to time, 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.

 

1                                         Definitions

 

1.1                              In this letter:

 

“Enforcement Action” means:

 

(a)                                in relation to any Liabilities:

 

(i)                           the acceleration of any Liabilities or the making of any declaration that any Liabilities are due and payable or payable on demand;

 

(ii)                        any demand against any Group Member under any security, guarantee or surety provided of that Group Member;

 

 

(iii)                     the exercise of any right of set-off, account combination or payment netting against any Group Member in respect of any Liabilities other than ordinary netting under any swap or derivative contract; and

 

(iv)                    the premature termination or close-out of any swap or derivative transaction under any swap or derivative contract entered into with any Group Member in respect of any Liabilities;

 

(b)                                the taking of any steps to enforce or require the enforcement of any Encumbrance granted by any Group Member (including any arrest of any vessel for a claim in excess of $5,000,000 or any other enforcement of any mortgage over any vessel or any other asset of any Group Member the crystallisation of any floating charge or redirecting the earnings of any vessel or the other assets of any Group Member), except for any enforcement of assignment of insurances in relation to a total loss or other significant insured event; or

 

(c)                                 the petitioning or applying for any Insolvency Proceeding;

 

“Group” means the Borrower and each of its Subsidiaries, and a “Group Member” means any of them;

 

“Insolvency Proceedings” means any bankruptcy, liquidation, reconstruction, winding up, dissolution, administration or reorganisation of any Group Member, or any of such Group Member’s assets or a composition, compromise, assignment or arrangement with any creditor of any Group Member or any suspension of payments or moratorium of any indebtedness of any such Group Member, or any other insolvency proceedings or any analogous procedure or step in any jurisdiction (including the appointment of any liquidator, receiver, administrator, trustee or similar officer), including but not limited to, any chapter 11 cases in the United States of America;

 

“Liabilities” means any and all Financial Indebtedness of any Group Member in excess of $5,000,000; and

 

“Termination Event” shall have the meaning given to it in paragraph 5.1 below.

 

1.2                              All other terms and expressions used in this letter shall have the same meaning given to them in the Loan Agreement unless expressly defined in this letter or the context otherwise requires.

 

1.3                              This letter is designated as a Finance Document.

 

2                                         Request

 

We refer to the Loan Agreement and to your letter to us dated 5 January 2016 requesting a temporary waiver (the “Collateral Maintenance Waiver”) of compliance with clause 10.10 (Additional Security) of the Loan Agreement (the “Collateral Maintenance Covenant”) and as a consequence, the right of the Agent to request that the Borrower comply with clause 10.10.1, 10.10.2 or 10.10.3 in accordance with the Collateral Maintenance Covenant for the fiscal quarter ending 31

 

2

 

December 2015 through and including 11:59pm (New York time) on 11 April 2016 (the “Collateral Maintenance Waiver Period”).

 

3                                         Section 547 & 548 of Title 11 of US Bankruptcy Code

 

The entry into by the Finance Parties, and covenants to perform in accordance with, this letter hereby constitutes “new value” and “reasonably equivalent value”, as those terms are used in section 547 and 548 of Title 11 of the United States Bankruptcy Code, received by the Security Parties as of the closing of this letter in contemporaneous exchange for the entry into by the Security Parties, and covenants to perform in accordance with, this letter.

 

4                                         Waiver and Conditions

 

We hereby agree to waive your compliance with the Collateral Maintenance Covenant during the Collateral Maintenance Waiver Period, subject to the following conditions being satisfied:

 

(a)                                 prepayment by the Borrower of the Repayment Installment in the amount of five million, seventy-five thousand Dollars ($5,075,000) originally due on 11 April 2016 together with accrued interest and, subject to any Break Costs, but without premium or penalty;

 

(b)                                the Collateral Maintenance Waiver shall apply only in relation to the Collateral Maintenance Waiver Period;

 

(c)                                 on the date 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 clauses 2.1.1 and 2.1.2 of the third supplemental agreement dated 9 July 2014 relating to 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, accurate and neither amended nor revoked, of any which have been amended or modified; and

 

(d)                                you provide us with the Borrower’s and each Collateral Owner’s monthly cash position reports at the date of this letter, on 11 March 2016 and on 11 April 2016, in each case as of the end of the prior month.

 

5                                         Termination of Collateral Maintenance Waiver

 

5.1                              The Collateral Maintenance Waiver shall cease to apply automatically and with immediate effect if any event specified in clause 5.1(a) to (h) below occurs (each a “Termination Event”), unless such Termination Events are expressly waived by the Agent, acting on the instructions of the Majority Lenders:

 

(a)                                an Event of Default has occurred;

 

(b)                                you are in breach of any of your obligations under this letter;

 

3

 

(c)                                 the Collateral Maintenance Waiver Period has expired;

 

(d)                                any creditor takes Enforcement Action against any Group Member and such Enforcement Action triggers an event of default (however described in any other agreement relating to Financial Indebtedness), which is not waived or forborne; or

 

(e)                                 any Group Member petitions or applies for any Insolvency Proceedings.

 

5.2                              After the termination of this letter, each of the Finance Parties shall be released from all of its obligations under this letter and may take any Enforcement Action after such termination in accordance with the terms of the Finance Documents.

 

6                                         Reservation of Rights

 

Nothing in this letter shall prevent the Finance Parties from taking any Enforcement Action after the Collateral Maintenance Waiver Period in respect of any Event of Default which has occurred or may occur during the Collateral Maintenance Waiver Period or which occurs and continues after the termination of this letter, regardless of whether such Event of Default occurred prior to or during the Collateral Maintenance Waiver Period.  Accordingly, this letter shall not constitute any waiver by the Finance Parties of any breach or default by any Group Member and the Finance Parties reserve all rights in relation thereto, except as otherwise expressly set out in this letter and subject only to the terms of this letter.

 

7                                         Undertakings

 

7.1                              You shall promptly notify us of any event of default (howsoever defined) relating to any Financial Indebtedness in respect of any Group Member which is not otherwise waived or forborne.

 

7.2                               You shall promptly notify us if:

 

(i)        a Termination Event occurs or is reasonably likely to occur; or

 

(ii)       any Enforcement Action is commenced against a Group Member or is reasonably likely to occur.

 

7.3                              You shall promptly notify us if any Group Member enters into any amendment or waiver in relation to any agreement in respect of any Financial Indebtedness of any Group Member and shall inform the Agent of the content of the proposed amendment or waiver.

 

8                                         Continuing Security

 

You confirm 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.

 

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9                                         Counterparts and applicable law

 

9.1                              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.

 

9.2                              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

 

 

	
/s/ Sven Walther
    	
 
    	
/s/ Franz-Josef   Ewerhardy
    
	
Walther
    	
 
    	
Ewerhardy
    

 

For and on behalf of

Deutsche Bank Luxembourg S.A.

(as Agent acting on the instructions of the Majority Lenders)

 

5

 

[On Duplicate]

 

Confirmed and agreed on 11 March 2016

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)
    	
 
    

 

6Exhibit 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:

 

29 March 2016

 

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 17 February 2016 from the Borrower to the Agent regarding a request for the waiver of various terms of the Facility Agreement (the “Request Letter”). We understand that the Borrower has requested a waiver of the minimum required security cover covenant under clause 16.1 of the Facility Agreement until 11 April 2016; and

 

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

 

OPERATIVE PROVISIONS:

 

2.                                      INTERPRETATION

 

2.1                               Capitalised terms defined in the Facility Agreement have the same meaning when used in this letter unless expressly defined in this letter, and:

 

(a)                                 “Effective Date” means the date on which we confirm to the Borrower that we have received an acknowledgement and agreement to the terms of this letter signed by each Obligor (and we will give this confirmation promptly).

 

(b)                                 “Enforcement Action” means:

 

(i)                                     in relation to any Liabilities:

 

(A)                               the acceleration of any Liabilities or the making of any declaration that any Liabilities are due and payable or payable on demand;

 

(B)                               any demand against any Group Member under any security, guarantee or surety provided by that Group Member;

 

 

(C)                               the exercise of any right of set-off, account combination or payment netting against any Group Member in respect of any Liabilities other than ordinary netting under any swap or derivative contract; and

 

(D)                               the premature termination or close-out of any swap or derivative transaction under any swap or derivative contract entered into with any Group Member in respect of any Liabilities;

 

(ii)                                  the taking of any steps to enforce or require the enforcement of any Security Interest granted by any Group Member (including any arrest of any vessel for a claim in excess of $5,000,000 or any other enforcement of any mortgage over any vessel or any other asset of any Group Member, the crystallisation of any floating charge or redirecting the earnings of any vessel or the other assets of any Group Member), except for any enforcement of assignment of insurances in relation to a total loss or other significant insured event; or

 

(iii)                               the petitioning or applying for any Insolvency Proceeding;

 

(c)                                  “Group” means the Borrower and each of its Subsidiaries, and a “Group Member” means any of them;

 

(d)                                 “Insolvency Proceedings” means any bankruptcy, liquidation, reconstruction, winding up, dissolution, administration or reorganisation of any Group Member, or any of such Group Member’s assets or a composition, compromise, assignment or arrangement with any creditor of any Group Member or any suspension of payments or moratorium of any indebtedness of any such Group Member, or any other insolvency proceedings or any analogous procedure or step in any jurisdiction (including the appointment of any liquidator, receiver, administrator, trustee or similar officer), including but not limited to, any chapter 11 cases in the United States of America;

 

(e)                                  “Liabilities” means any and all Financial Indebtedness of any Group Member in excess of $5,000,000; and

 

(f)                                   “Termination Event” shall have the meaning ascribed to it in paragraph 7.1 below.

 

2.2                               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 contained in this letter is 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.                                      SECTION 547 & 548 OF TITLE 11 OF US BANKRUPTCY CODE

 

4.1                               The entry into by the Agent, and covenants to perform in accordance with, this letter hereby constitutes “new value” and “reasonably equivalent value”, as those terms are used in section 547 and 548 of Title 11 of the United States Bankruptcy Code, received by the Creditor Parties as of the closing of this letter in contemporaneous exchange for the entry into by the Creditor Parties and covenants to perform in accordance with, this letter.

 

5.                                      WAIVER

 

Subject to paragraph 6 (Condition) of this letter, with effect from the Effective Date, the requirement that the Borrower not permit the aggregate Appraised Value of all Mortgaged Vessels (plus the value of any additional security provided pursuant to Clause 16.2) at any time to equal less than 130% of the aggregate principal amount of outstanding Loans at such time, and as a consequence the right of the Agent to request that the Borrower comply with clause 16.2, shall be waived (the “Security Cover Waiver”), until the earlier of:

 

(a)                                 11 April 2016 at 11:59 pm (New York time) (inclusive); or

 

(b)                                 until the Security Cover Waiver is automatically terminated in accordance with paragraph 7 (Termination of Security Cover Waiver),

 

(the “Security Cover Waiver Period”).

 

6.                                      CONDITIONS

 

6.1                               The Security Cover Waiver is subject to the following conditions being satisfied:

 

(a)                                 payment on or before 29 March 2016 by the Borrower of $1,923,075, which would otherwise be due on the next Repayment Date falling on 31 March 2016; and

 

(b)                                 you provide us with the Borrower’s and each Guarantor’s monthly cash position reports as at the date of this letter and on 11 April 2016, in each case as of the end of the prior month.

 

7.                                      TERMINATION OF SECURITY COVER WAIVER

 

7.1                               The Security Cover Waiver shall cease to apply automatically and with immediate effect if any of the following (each a “Termination Event”) occurs:

 

 

(a)                                 an Event of Default (other than an Event of Default which would have occurred but for the Security Cover Waiver);

 

(b)                                 any creditor takes Enforcement Action against a Group Member and such Enforcement Action triggers an event of default (however described in any other agreement relating to Financial Indebtedness), which is not waived or forborne;

 

(c)                                  any Group Member petitions or applies for any Insolvency Proceedings; or

 

(d)                                 you are in breach of any of your obligations under this letter,

 

unless such Termination Event is expressly waived by the Agent, acting on the instructions of the Majority Lenders.

 

7.2                               After the expiry of the Security Cover Waiver Period, each of the Creditor Parties shall be released from all of its obligations under this letter and may take any Enforcement Action after such termination in accordance with the terms of the Finance Documents.

 

8.                                      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 Creditor Party reserves any right or remedy it has now or in the future in respect of any Default which arises from any circumstances described in paragraph 1(a) and which is continuing as at the expiry of the Security Cover Waiver Period.

 

9.                                      UNDERTAKINGS

 

You shall promptly notify us:

 

(a)                                 if a Termination Event occurs or is reasonably likely to occur;

 

(b)                                 if any Enforcement Action is commenced against a Group Member or is reasonably likely to occur;

 

(c)                                  of any event of default (howsoever defined) relating to any Financial Indebtedness in respect of any Group Member which is not otherwise waived or forborne; or

 

(d)                                 if any Group Member enters into any amendment or waiver in relation to any agreement in respect of any Financial Indebtedness of any Group Member and shall inform the Agent of the content of the proposed amendment or waiver.

 

10.                               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.

 

11.                               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.

 

12.                               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.

 

13.                               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.

 

14.                               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

 

	
 
    	
 
    	
Jerome Duval
    
	
 
    	
)
    	
/s/ Jerome Duval 
    
	
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/ Yannick Le Gouriérès
    
	
 
    	
Yannick Le Gouriérès
    

 

 

[On counterpart]

 

29 March 2016

 

We agree with the terms of this letter.

 

BORROWER

 

	
SIGNED by 
    	
)
    	
 
    
	
for and on behalf of GENCO   SHIPPING & TRADING LIMITED
    	
)

)
    	
/s/ Apostolos Zafolias
    
	
 
    

 

GUARANTORS

 

	
SIGNED by 
    	
)
    	
 
    
	
for and on behalf of GENCO BAY LIMITED
    	
)

)
    	
/s/ Apostolos Zafolias
    
	
 
    

 

	
SIGNED by 
    	
)
    	
 
    
	
for and on behalf of GENCO OCEAN LIMITED
    	
)

)
    	
/s/ Apostolos Zafolias
    
	
 
    

 

	
SIGNED by 
    	
)
    	
 
    
	
for and on behalf of GENCO AVRA LIMITED
    	
)

)
    	
/s/ Apostolos Zafolias
    
	
 
    

 

	
SIGNED by 
    	
)
    	
 
    
	
for and on behalf of GENCO MARE LIMITED
    	
)

)
    	
/s/ Apostolos Zafolias
    
	
 
    

 

	
SIGNED by 
    	
)
    	
 
    
	
for and on behalf of GENCO SPIRIT LIMITED
    	
)

)
    	
/s/ Apostolos Zafolias
    
	
 
    

 

	
SIGNED by 
    	
)
    	
 
    
	
for and on behalf of GENCO SUGAR LIMITED
    	
)

)
    	
/s/ Apostolos Zafolias
    
	
 
    

 

 

	
SIGNED by 
    	
)
    	
 
    
	
for and on behalf of GENCO PROSPERITY LIMITED
    	
)

)
    	
/s/ Apostolos Zafolias

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