Premuda, the acquisition of great part of the debits by Pillarstone can represent a possible one throws again of the group



If the economic results of Premuda have recorded progressive an ulterior worsening in the course of 2015, the shipowning company considers however that the negotiations in course between the three financial institutions mainly exposed towards the shipowning group, that is Banca Carige, Unicredit and Group Understanding, for the cession of own credits regarding Premuda to Pillarstone Italy, broker who ago reference to the bottom specialized American KKR and in operations of "distressed debt, is, "in perspective key, sure positive for a possible one throws again of the group", but this - it has specified the society - could ulteriorly place to risk the business continuity.

Yesterday the board of directors of Premuda has resumed the interrupted work in recent days and has approved of the projects budgetary of exercise 2015, exercise - it has evidenced the Italian shipowning company - that "is characterized by a series of negative eventualities that have heavy affected the group results.

The consolidated economic account of exercise 2015 of Premuda shows revenues Time base charter pairs to 57,0 million euros, down of the -12,5% regarding the exercise precedence. Operating result and result clearly have turned out both of sign negative and pairs respective to -63,7 million euros and -81,4 million euros, against sign results 2014 they also negative and pairs respective to -21,5 million euros and -41,8 million euros.

In the solo fourth trimester of the 2015 they turn out recorded revenues Time base charter for 13,2 million euros, with a decrease of the -14,8% on corresponds period of 2014. The operating result has been of sign negative for -28,5 million euros respect to an operating result negative for -2,2 million euros in the last trimester of 2014. The Premuda group has closed the fourth trimester last year with a net loss of -31,6 million euros respect to a net loss of -7,7 million euros in the same period of 2014.

Premuda has emphasized that between the factors negatives that have affected the results of the exercise anniversary 2015 they heavy figure "the market of the hires negative in the market bulk that has involved the necessity to devaluate nine social units and to set aside the future losses attended for two unit rental; the loss realized with the cession of the FPSO Four new Rainbow to constituted the joint venture with the Yinson group; the losses realized with the cession to third party of the two units Aframax Ice Class, necessary in order to guarantee a sufficient liquidity to the group; the differences of change from appraisal of some financings in currency that, waiting for the definition of new plans of reimbursement, continue to weigh on the economic account; dragging on of the process of restructure of the debits that has involved an increment of the structure costs without to realize the previewed decrease of the spread applied to the financings".

About the follow-up of the negotiations with banks for the restructure of the debit financial, Premuda has remembered that "in the course of the month of July 2015, in the impossibility to reach stipulates of the definitive agreements within the summery pause and with the attempt to place the societies of the group in the condition of being able to carry out some necessary dismissioni of cespiti times to obtain a sufficient level of suitable liquidity to guarantee the normal operativity, has been sign with all the appropriate banks patrons agreements of standstill (pacta de not petendo), having various durations, until maximum on December 31, 2015. With such agreements - it has specified the Italian shipowning company - the banks have formalized their intention not to act for the payment than they due, are informed of the intention of the societies of the group to carry out, also in their interest, some dismissioni and, also not assuming formal engagements to conclude an agreement, they have been engaged in good faith to continue the negotiations with the attempt to reach stipulates of a definitive agreement within on October 31, 2015, on the financial base of an industrial plan and a rough draft of termsheet, to the age already agreed in the fundamental terms. In the second part of the year - Premuda has remembered moreover - therefore they have been able to realize joint venture with the Yinson group to which the FPSO Four Rainbow (with contextual integral is transferred reimbursement of relative the hypothecating debit to such unit) and the previewed dismissioni of the two units Aframax Ice Class possessed from Premuda International, generating so the sufficient liquidity to assure for entire exercise 2015 and good part of exercise 2016, the commercial correntezza of all the group".

Premuda has specified that "the course of the market of cargos dries has gone, however, ulteriorly getting worse and, in November 2015, have been necessary to introduce to the banks new a slowly industrial and proposed new of maneuver financial institution that, after to have understood the carried out dismissioni, in extreme synthesis, previews: an ulterior lengthening of the plans of reimbursement of all the financings; an ulterior reduction of the spread applied; the conversion, in or more solutions in reason of happening or less than some conditions, of the financings "unsecured" in participatory financial instruments, having characteristic of "equities", convertibile in common stocks of the second society modality and terms still to determine. The agreements of standstill sign to July - it has explained the company - are meantime all past due ones, but the situation in fact is not, today, modified".

Premuda has remembered therefore that "although still a position shared from all had not reached the banks, some institutes has started (and in some cases also concluded within end 2015) own deliberative, propedeutici processes to stipulates of the agreement, while the three institutes mainly exposed towards our group (Banca Carige, Unicredit and Group Understanding) has started negotiations for the cession of own credits on Pillarstone Italy" and that "to such care, recently the first agreements for the cessions of the credits are formalized".

The shipowning group has announced that yesterday the boards of directors of the involved societies (Premuda controlled Spa and Premuda International Sah and Four Handy Ltd.) has deliberated the consent to such cessions, that they remain however still subject to some conditions, and that the transfer to Pillarstone of the credit of an institute regarding the connected Four is previewed also Joker, whose board of directors will meet by the end of the month.

Premuda has explained that "with the transfer of the creditorie positions of the three institutes, Pillarstone will become - by far - the main creditor of the group, will participate to the resumption of the negotiations with the other banks and will be able to supply an impulse to the auspicious finalizzazione of the agreement of restructure of the debits that could preview the conversion of part of the acquired debit from Pillarstone in capital".

According to Premuda, "the income of Pillarstone is, in perspective key, sure positive for a possible one throws again of the Premuda group, but it could involve an ulterior lengthening of the restructure process, because of the necessity to discuss and to define with the new creditor and also with the other new banks terms. This - it has clarified the shipowning society - could ulteriorly increase the already meaningful doubts on the subsistence of the business continuity".

Premuda has concluded confirming that "the board of directors of the society, constantly engaged to monitor the situation and its expectable evolutions, continues however to consider that the outcome of the negotiations can lead to the mass in safety of the society and the group and currency such result more probable respect to other scenes of concorsuale and/or liquidatoria nature and on such foundation the budget of exercise 2015 is managed on the base of the business continuity".