Awilco LNG is to make temporary amendments to financial covenants in the sale/leaseback terms for the LNGCs ‘WilForce’ and ‘WilPride’.
In an agreement with CCB Financial Leasing (CCBFL), the required minimum consolidated cash and cash equivalents financial covenant of $10 mill will be reduced to $2 mill and the required consolidated working capital financial covenant will be waived.
Both are effective for six months starting 1st July and ending on 31st December, 2020.
This is a precautionary measure as a result of the current weak market conditions in LNG transportation, due to Covid-19, leading to a temporary reduction in demand for energy.
Market analysts expect an improvement of the LNG shipping market in the second half of 2020 as the world reopens from lockdowns and economies recover, Awilco said in an Oslo Bors statement.
Jon Skule Storheill, Awilco LNG CEO, said: "We are very pleased with the support CCBFL has shown the company in this extraordinary and temporary situation underlining the excellent co-operation and positive relationship between the parties."