Replies to post #18708 on Box Ships Inc (TEUFF)

[Toxic Avenger]

Thanks. Let me clear up some errors in your info however.
They still have to make interest payments, in the case of the larger loan, using automatic (sweep) payments. Hence the need for the toxic loans. Only principal repayment is delayed.
The principal is delayed until May for the smaller loan and June for the larger loan, neither is delayed until July.
The $32 million loan has a condition tied to the Box Emma having a redelivery date of Jan 2017. They just sold that ship which may mean the loan is now in default and due.
Both loans "mature" in May and June, meaning they are due in full, not simply ongoing installments as has been the case. Should the banks believe their maximum recovery is through taking possession of the remaining ships, they will do so.
Hype is hype. Regardless of the reason, it's clear that there are a number of people looking to get out of the stock quickly. Given the above, as well as the company's information on its many additional risk factors, that's not surprising.


$100 Million – Syndicated Secured Term Loan Facility (the “Facility”)


The Company has entered into an indicative term sheet, subject to due diligence and the signing of definitive documentation, with ABN AMRO Bank N.V., pursuant to which, the repayment instalments under the current loan agreement (the “Facility”) will be deferred to the maturity of the loan in June 2017, subject to a cash sweep mechanism and certain other conditions. In addition, ABN AMRO Bank agreed to waive certain covenants under the Facility in their entirety while others will be amended up until the maturity of the Facility.

$31.65 Million – Secured Term Loan Facility

The Company has agreed to terms, subject to the signing of definitive documentation, with CREDIT SUISSE AG, pursuant to which, the repayment instalments shall be deferred up until the maturity of the loan in May 2017 and the covenants under the loan agreement shall be waived up until the maturity of the loan, subject to certain other conditions, one of which is connected to the expiration of the current employment of Box Emma, having a latest redelivery date of January 2017.