Subsequent Events

3 Months Ended

Jun. 30, 2020

Subsequent Events.

Subsequent Events

14. Subsequent Events

Amendment to the 2015 AR Facility

On July 14, 2020 (with retroactive effect to June 30, 2020), we amended the 2015 AR Facility and received the requisite lender consents, as applicable, to, among other things, relax the covenant restrictions under the agreement, including:

● Elimination of the interest coverage ratio;

● Reduction of minimum shareholders’ equity to $400 million with no upward adjustments;

● Reduction of the minimum liquidity covenant from $40 million to $27.5 million;

● Reduction of minimum cash balance from $2.2 million to $1.0 million per mortgaged vessel; and

● Increase of the security value ratio from 135% to 145%.

The restriction for the provision of the minimum balance of cash was modified under the terms of the amendment to the 2015 AR Facility and no longer meets the criteria to be recognized as restricted cash. As a result, and with retroactive effect to June 30, 2020, we no longer classify these amounts as restricted cash on our condensed consolidated balance sheets. This requirement was reduced from $2.2 million per mortgaged vessel under the initial 2015 AR Facility to $1.0 million per mortgaged vessel per the July 14, 2020 amendment.

Repurchase Notice for the Captain John NP

On July 15, 2020, we exercised our repurchase option under the CJNP Japanese Financing by providing a three-month notice to the owners of Captain John NP of our intent to repurchase the vessel for approximately $18.3 million in cash and applied the deposit amount of $26.6 million, which had been retained by the buyer in connection with the CJNP Japanese Financing (the “CJNP Deposit”), towards the repurchase of the vessel.