Announced in the company's first quarter earnings release, the figures contributed to $48.2m loss in the first quarter compared to a $33m loss in first quarter 2012. Voyage revenues fell from $59m in the first quarter 2012 to $39.7m in 2013. The increased losses put a greater strain on Genco's cash reserves. As a result in three months ended 31 March 2013 the amount of net cash used to support daily operations totalled $17.4m compared to $8.0m, in the same period a year earlier.
Genco previously amended three credit facilities in July 2012 and now warns that it may still breach debt covenants. These include two term loan facilities of $253m and $100m in value.
The release went on to state that, "Given the current drybulk rate environment, the company may be unable to maintain compliance with certain covenants under our credit facilities at measurement dates during the twelve months ending March 31, 2014," Genco
John Wobensmith, cfo commented, "Genco remains committed to effectively managing the Company through the current drybulk shipping cycle. While we continue to operate in a challenging drybulk market, management remains focused on employing a large majority of vessels on short-term or spot market-related contracts with creditworthy counter parties."
The chairman of Genco is Peter C. Georgiopoulos, who is also chairman of General Maritime Corp which successfully emerged from a Chapter 11 bankruptcy filing in May 2012 which it had filed for in the previous year.
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