Awilco agrees a financial covenant extension

Thursday, 26 November 2020
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Awilco LNG has come to an agreement with CCB Financial Leasing (CCBFL) to extend the temporary amendments to financial covenants attached to the sale/leaseback of ‘WilForce’ and ‘WilPride’.

The required minimum consolidated cash and cash equivalents financial covenant of $10 mill has been reduced to $2 mill and the required consolidated positive working capital financial covenant has been waived, originally to 31st December, 2020, but now extended for a further six-month period to 30th June, 2021.

As a condition, the company is restricted from declaring or paying dividends if the consolidated cash position of the Awilco LNG Group is lower than $20 mill.

The anticipated colder winter, caused by a ‘La Nina’ weather pattern, is expected to support a strong LNG shipping market in the next few months until LNG demand is expected to resume its growth trajectory.

As a result, the company’s results are expected to improve, Awilco said.

Jon Skule Storheill, Awilco LNG CEO, said: “We are very pleased with the continued support CCBFL has shown the company in this extraordinary and temporary situation underlining the excellent co-operation and positive relationship between the parties.” 

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