EX-12.1 5 a2236107zex-12_1.htm EX-12.1

Exhibit 12.1

 

GENCO SHIPPING & TRADING LIMITED
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in thousands of dollars, except ratios)

 

 

 

Genco Successor Company (1)

 

 

Genco Predecessor Company (1)

 

 

 

For the
Three
Months
ended
March
31, 2018

 

For the
Year
Ended
2017

 

For the
Year
Ended
2016

 

For the
Year
Ended
2015

 

For the
Period
July 9,
2014 to
December
31, 2014

 

 

For the
Period
January 1,
2014 to July
9, 2014

 

For the
Year Ended
2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

(55,813

)

(58,725

)

(217,757

)

(254,368

)

(213,358

)(3)

 

(1,013,250

)(2)

(157,021

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

8,278

 

31,102

 

29,017

 

21,007

 

8,308

 

 

41,613

 

88,766

 

Plus amortization of capitalized interest

 

10

 

42

 

42

 

25

 

1

(4)

 

247

 

474

 

Less capitalized interest

 

—

 

—

 

—

 

(372

)

(400

)

 

(295

)

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

$

(47,525

)

$

(27,581

)

$

(188,698

)

$

(233,708

)

$

(205,449

)

 

$

(971,685

)

$

(67,781

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense and capitalized interest

 

7,551

 

28,172

 

25,606

 

18,025

 

7,175

 

 

36,895

 

79,100

 

Amortization of deferred financing costs

 

573

 

2,325

 

2,847

 

2,379

 

845

 

 

4,461

 

9,116

 

Interest component of rent expense

 

154

 

605

 

564

 

603

 

288

 

 

257

 

550

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fixed charges

 

$

8,278

 

$

31,102

 

$

29,017

 

$

21,007

 

$

8,308

 

 

$

41,613

 

$

88,766

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges (5)

 

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

 

N/A

 

N/A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deficiency of earnings available to cover fixed charges (5)

 

$

55,803

 

$

58,683

 

$

217,715

 

$

254,715

 

$

213,757

 

 

$

1,013,298

 

$

156,547

 

 

(1) As a result of our bankruptcy we adopted fresh start reporting on July 9, 2014 in accordance with provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 852, “Reorganizations” (“ASC 852”). The period from July 9 to December 31, 2014 (“Genco Successor Company”) and the period from January 1 to July 9, 2014 (“Genco Predecessor Company”) are distinct reporting periods as a result of our emergence from bankruptcy on July 9, 2014 as reported in our consolidated financial statements. Our financial condition and results of operations from and after July 9, 2014 are not comparable to the financial condition or results of operations reflected in its other historical financial statements shown due to the application of fresh start reporting.

 

(2) The net effect of all fresh start accounting adjustments and other reorganization items resulted in a loss of $1,013,250, which is reflected in the statement of operations fot the period January 1, 2014 to July 9, 2014.

 

(3)The statement of Operations includes a charge of $166,067 for impairment of goodwill, which is reflected in the statement of operations fot the period July 9, 2014 to December 31, 2014.

 

(4) Amortization of capitalized interest incurred by the Predecessor for any ship that was revalued to fair market value upon emergence from Bankruptcy was eliminated.

 

(5) The ratio of earnings for the quarter ended March 31, 2018, for the years ended December 31, 2017, December 31, 2016, December 31, 2015, December 31, 2013, the Period from July 9, 2014 to December 31, 2014 and the Period from Janaury 1, 2014 to July 9, 2014 were inadequate to cover fixed charges.  The deficiancy of earnings indicated for each period would have been necessary to bring the ratio of earnings to fixed charges to 1.0.