Gulf Navigation Holding (Gulfnav), the Dubai-based shipping company, has signed a settlement agreement with one of its major creditors, Nordic American Tankers Limited, Bermuda (NAT). The announcement was made in a formal statement delivered by Gulfnav to the Dubai Financial Market (DFM). The settlement follows the company’s recent report of a net profit growth of 172% to $2.74 million in the first half of 2015.
Under the terms of the agreement with Nordic American Tankers, Gulfnav will issue Mandatory Convertible Bonds (MCBs) with a face value of AED 37.34 million as full and final settlement for claims made by NAT. MCBs will be issued prior to 20th August 2015, subject to approval from the Department of Economic Development and the Securities and Commodities Authority.
GULFNAV is currently engaged in negotiations with other creditors to reach mutually satisfactory outcomes.
Hazza Baker Al Qahtani, founder and chairperson of Gulf Navigation Holding was appreciative of the full support given by shareholders, investors and government regulators in its efforts to resolve pending creditor concerns. “They were all instrumental to our successful negotiations with Nordic American Tankers Limited and will definitely be crucial to similar ongoing talks with other creditors,” he added.
