The company is already in dialogue with the new holders of its senior debt, the ownership of which changed hands during the first quarter.
Despite an outlook of gradual improvement and increased fleet utilisation over the coming years, Eitzen considers its own financial position as restrictive and sees a favourable market for attracting investment in chemical tankers. A stronger balance sheet would open up opportunities to invest in new assets and expand the company's market presence.
Eitzen's total long term debt stood at $948.5m at the end of the quarter and it finalised a restructuring of its bank and bond debt in January 2013, which "is expected to secure headroom and stable operations through 2015."
For the first quarter, a earnings were dampened by the market climate and physical climate leading to a loss of $25.8m.
The loss is higher than the $10.6m loss in Q1 2013 and $21.1m loss in Q4 2013. A first quarter EBITDA of $7m was also lower than the preceding quarter and previous year's Q1.
Storms and cold weather had a negative impact on results as increased fuel costs, tug costs and delays were caused in the Atlantic Basin and Canada. Time charter equivalent rates were down 4.1% to $10,728 as earnings and market activity fell below expectations, with forecasts for Q2 pegging rates at similar levels.
Eitzen Chemical has a fleet of 51 vessels, six on financial lease, nine on operational lease and 36 owned.
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