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Genco Shipping & Trading Ltd. Message Board

  • eshjg eshjg Sep 23, 2012 8:00 PM Flag

    How much cash GNK is going to burn this quarter?

    It only has $99.6M on hand with more than $1.4B in debt. GNK has to pay $80M interest each year, so it will run out of cash if there is no big jump for BDI in next 2years.

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    • The quarter report WILL be interesting.

      But if you look through last qtr's statement of cashflows, rather than the income statement, you'll see that, even at these low charter rates, GNK was throwing off enough cash to cover interest.

      The recent debt restructure agreement relieved the company of the 2014 *principal* repayment obligation that was the major liquidity issue facing the company. With that off the table, at least for now, the company is throwing off enough cash from operations to meet its interest payment obligations.

      Rates have to deteriorate further to compromise their liquidity. Which is possible, of course. But they do NOT need a "big jump" in the BDI to remain "solvent" given the recent debt restructure which negated the near term principal payment requirements.

      It's not "clear sailing" from here. But GNK is not facing a near term cash crisis, either.

      • 1 Reply to semper_grumpy
      • The average daily rate in the last quarter was $11000 with 62 ships. The cash flow was $0.5M. The average rate for this quarter could be less than $9000. If that is the case, the cash flow for this quarter will be negative $11M. The Q4 will be worse as one Cape with $65k rate will expire in the beginning of the October. Starting from Q4, the cash flow will be -$15m each quarter. With that burning speed, GNK will only have $10m cash left when next refinance comes.

5.78+0.13(+2.30%)Oct 25 4:02 PMEDT