Contact Information: Company Contact: Fariyal Khanbabi Chief Financial Officer Tel. +44 (0)20 7264 4900 Investor Relations / Media: Paul Lampoutis Vice President Capital Link, Inc. Tel. (212) 661-7566 E-mail: britanniabulk@capitallink.com
Britannia Bulk Holdings Inc. Provides Additional Financial Update
| Source: Britannia Bulk Holdings Inc.
LONDON--(Marketwire - October 29, 2008) - Britannia Bulk Holdings Inc. (the "Company") (NYSE : DWT ), an international provider of dry bulk shipping and maritime logistics
services with a focus on transporting dry bulk commodities in and out of
the Baltic region, today announced that, following the Company's press
release of October 28, 2008, the lenders under the US $170.00 million term
loan facility (the "Facility") of Britannia Bulk Plc, a wholly owned
subsidiary of the Company (the "Borrower"), have provided notice to the
Borrower of the acceleration of all of its obligations under the Facility
and the set off of the Borrower's cash accounts on deposit with one of the
lenders. The Company has guaranteed the Borrower's obligations under the
Facility. The acceleration notice alleges that certain events of default
under the Facility have occurred, including material adverse changes in the
Borrower's financial condition, and demands immediate repayment of the
loan, accrued interest thereon and other amounts due thereon, aggregating
approximately US $158.7 million without taking into account the set off of
the Borrower's cash accounts.
Following further discussion with the Company, the lenders have advised the
Company that they are prepared, subject to certain conditions, to make
funds available to ensure that the vessels securing the Facility continue
to operate normally and meet their commitments. Such understanding is in
the context of ongoing negotiations with the lenders regarding a sale of
certain of the Company's assets, which, if consummated, is not expected to
result in any return to the Company's common shareholders.
ABOUT BRITANNIA BULK HOLDINGS INC.
Britannia Bulk Holdings Inc. is an international provider of drybulk
shipping and maritime logistics services with a focus on transporting
drybulk commodities in and out of the Baltic region. The current owned
fleet consists of 22 vessels, including 13 drybulk vessels, five of which
are ice-class, five ocean going ice-class barges, and four ice-class tugs.
The Company also charters-in additional vessels to increase its overall
deadweight tonnage capacity and enhance its service to its customers. As
at June 30, 2008, the number of chartered-in drybulk vessels under the
Company's control was 53, 9 of which were ice-class.
Forward-Looking Statement
This press release contains forward-looking statements (as defined in
Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended) concerning future events
and the Company's growth strategy and measures to implement such strategy;
including expected vessel acquisitions and entering into further time
charters. Words such as expects, intends, plans, believes, anticipates,
hopes, estimates, and variations of such words and similar expressions are
intended to identify forward-looking statements. Although the Company
believes that the expectations reflected in such forward-looking statements
are reasonable, no assurance can be given that such expectations will prove
to have been correct. These statements involve known and unknown risks and
are based upon a number of assumptions and estimates that are inherently
subject to significant uncertainties and contingencies, many of which are
beyond the control of the Company. Actual results may differ materially
from those expressed or implied by such forward-looking statements. Factors
that could cause actual results to differ materially include, but are not
limited to changes in the demand for dry bulk vessels and container ships,
competitive factors in the market in which the Company operates; risks
associated with operations outside the United States; and other factors
listed from time to time in the Company's filings with the Securities and
Exchange Commission. The Company expressly disclaims any obligations or
undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change in the
Company's expectations with respect thereto or any change in events,
conditions or circumstances on which any statement is based.
Contact:
Visit our website www.britbulk.net