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Omega reveals loan covenant breaches

Singapore: Singapore-listed Omega Navigation has revealed it has been in breach of loan covenants since the end of last year as it belated reports financial results. The Greek shipowner said it had been in breach of loan-to-value covenants since 31 December 2009 on a junior loan facility with BTMU and NIBC that matures in April 2011. The lenders did not though declare any default on the loan. "The company is currently in negotiations to reach a final agreement to obtain waivers and extend or restructure its debt, and is also exploring, amidst challenging capital market conditions, various alternatives including capital raising in order to improve both its short term and long term liquidity, meet short term commitments and manage its overall capital exposure," Omega said. The revelation of the breach in loan-to-value covenants came as Omega reported delayed results for the fourth quarter of 2009 and the first quarter of 2010. In the first quarter of 2010 the company reported a $500,000 profit on revenues of $15.5m, this was lower than the $900,000 profit it reported in the final quarter of 2009 with revenues of $14.8m. [12/07/10]

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