Having lost AED29.69m ($8.08m) for the first six months the year, and accumulated losses of AED507.37m, the shipowner is in discussions with its banks to stave off them calling a default on its loans.
Gulf Navigation was in breach of its loan term agreements as of 30 June this year and was unable to make a loan repayment installment of $1.83m.
Due to the breaches all of loans have been classified as current liabilities giving it a net current liability position of AED854m. If agreement cannot be reached with its banks the company would be forced to sell its vessels to repay the debt.
“As a result, there exists a material uncertainty which may cast significant doubt on the ability of the group to continue as going concern,” the company said in its interim results statement.
The company added that discussions with its lenders were “in progress with an expectation that an agreement will be reached with lenders in the second half of 2013.”
The directors said they had “a reasonable expectation that the group will have adequate resources to continue in operational existence for the forseeable future”.
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