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EX-31.2 - EX-31.2 - GENCO SHIPPING & TRADING LTDgnk-20170630ex312bc0080.htm
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EX-32.1 - EX-32.1 - GENCO SHIPPING & TRADING LTDgnk-20170630ex32193df45.htm
EX-31.1 - EX-31.1 - GENCO SHIPPING & TRADING LTDgnk-20170630ex3119609f8.htm
EX-10.2 - EX-10.2 - GENCO SHIPPING & TRADING LTDgnk-20170630ex102f36a6b.htm
EX-10.1 - EX-10.1 - GENCO SHIPPING & TRADING LTDgnk-20170630ex101f6e7fe.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2017

 

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF  1934

 

For the transition period from           to         

 

Commission file number 001-33393

 


 

GENCO SHIPPING & TRADING LIMITED

(Exact name of registrant as specified in its charter)

 

 

 

 

Republic of the Marshall Islands

 

98-043-9758

(State or other jurisdiction of
incorporation or organization)

 

(I.R.S. Employer
Identification No.)

299 Park Avenue, 12th Floor, New York, New York 10171

(Address of principal executive offices) (Zip Code)

(646) 443-8550

(Registrant’s telephone number, including area code)

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes  No 

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

 

 

 

 

 

 

 

 

 

 

Large accelerated filer 

 

Accelerated filer 

 

Non-accelerated filer 

 

Smaller reporting company 

 

 

 

 

(Do not check if a smaller reporting company)

 

Emerging growth company 

If emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act   

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

 

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.  Yes No

 

The number of shares outstanding of each of the issuer’s classes of common stock, as of August 10, 2017: Common stock, $0.01 per share — 34,434,538 shares.

 

 


 

Genco Shipping & Trading Limited

 

 

 

Page

 

 

 

 

PART I — FINANCIAL INFORMATION

 

 

 

 

Item 1.

Financial Statements (unaudited)

4

 

 

 

 

a)

Condensed Consolidated Balance Sheets as of June 30, 2017 and December 31, 2016

4

 

 

 

 

 

b)

Condensed Consolidated Statements of Operations for the Three and Six Months ended June 30, 2017 and 2016

5

 

 

 

 

 

c)

Condensed Consolidated Statements of Comprehensive Loss for the Three and Six Months ended June 30, 2017 and 2016

6

 

 

 

 

 

d)

Condensed Consolidated Statements of Equity for the Six Months ended June 30, 2017 and 2016

7

 

 

 

 

 

e)

Condensed Consolidated Statements of Cash Flows for the Six Months ended June 30, 2017 and 2016

8

 

 

 

 

 

f)

Notes to Condensed Consolidated Financial Statements

9

 

 

 

Item 2. 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

40

 

 

 

Item 3. 

Quantitative and Qualitative Disclosures About Market Risk

70

 

 

 

Item 4. 

Controls and Procedures

71

 

 

 

 

PART II —OTHER INFORMATION

 

 

Item 1. 

Legal Proceedings

72

 

Item 6.

 

Exhibits

72

 

2


 

Website Information

 

We intend to use our website, www.GencoShipping.com, as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included in our website’s Investor section. Accordingly, investors should monitor the Investor portion of our website, in addition to following our press releases, SEC filings, public conference calls, and webcasts. To subscribe to our e-mail alert service, please submit your e-mail address at the Investor Relations Home page of the Investor section of our website. The information contained in, or that may be accessed through, our website is not incorporated by reference into or a part of this document or any other report or document we file with or furnish to the SEC, and any references to our website are intended to be inactive textual references only.

3


 

PART I. FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 

Genco Shipping & Trading Limited

Condensed Consolidated Balance Sheets as of June 30, 2017 and December 31, 2016

(U.S. Dollars in thousands, except for share and per share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

June 30, 

 

December 31, 

 

 

    

2017

    

2016

 

 

    

 

    

 

 

Assets

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

147,153

 

$

133,400

 

Restricted cash

 

 

8,335

 

 

8,242

 

Due from charterers, net of a reserve of $132 and $283, respectively

 

 

6,433

 

 

10,373

 

Prepaid expenses and other current assets

 

 

22,433

 

 

15,750

 

Vessels held for sale

 

 

 —

 

 

4,840

 

Total current assets

 

 

184,354

 

 

172,605

 

 

 

 

 

 

 

 

 

Noncurrent assets:

 

 

 

 

 

 

 

Vessels, net of accumulated depreciation of $193,922 and $163,053, respectively

 

 

1,315,336

 

 

1,354,760

 

Deferred drydock, net of accumulated amortization of $7,862 and $6,340 respectively

 

 

15,057

 

 

12,637

 

Fixed assets, net of accumulated depreciation and amortization of $878 and $759, respectively

 

 

951

 

 

1,018

 

Other noncurrent assets

 

 

514

 

 

514

 

Restricted cash

 

 

25,507

 

 

27,426

 

Total noncurrent assets

 

 

1,357,365

 

 

1,396,355

 

 

 

 

 

 

 

 

 

Total assets

 

$

1,541,719

 

$

1,568,960

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

20,355

 

$

22,885

 

Current portion of long-term debt

 

 

9,576

 

 

4,576

 

Deferred revenue

 

 

1,648

 

 

1,488

 

Total current liabilities:

 

 

31,579

 

 

28,949

 

 

 

 

 

 

 

 

 

Noncurrent liabilities:

 

 

 

 

 

 

 

Long-term lease obligations

 

 

2,228

 

 

1,868

 

Long-term debt, net of deferred financing costs of $10,204 and $11,357, respectively

 

 

506,044

 

 

508,444

 

Total noncurrent liabilities

 

 

508,272

 

 

510,312

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

539,851

 

 

539,261

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

Series A Preferred Stock, par value $0.01; aggregate liquidation preference of $0 and $120,789 at June 30, 2017 and December 31, 2016, respectively

 

 

 —

 

 

120,789

 

Common stock, par value $0.01; 500,000,000 shares authorized; issued and outstanding 34,434,538 and 7,354,449 shares at June 30, 2017 and December 31, 2016, respectively

 

 

344

 

 

74

 

Additional paid-in capital

 

 

1,626,584

 

 

1,503,784

 

Retained deficit

 

 

(625,060)

 

 

(594,948)

 

Total equity

 

 

1,001,868

 

 

1,029,699

 

Total liabilities and equity

 

$

1,541,719

 

$

1,568,960

 

 

See accompanying notes to condensed consolidated financial statements.

 

4


 

Genco Shipping & Trading Limited

Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2017 and 2016

(U.S. Dollars in Thousands, Except for Earnings Per Share and Share Data)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Six Months Ended

 

 

 

June 30, 

 

June 30, 

 

 

    

2017

    

2016

    

2017

    

2016

   

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

Voyage revenues

 

$

45,370

 

$

31,460

 

$

83,619

 

$

51,590

 

Service revenues

 

 

 —

 

 

414

 

 

 —

 

 

1,225

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

 

45,370

 

 

31,874

 

 

83,619

 

 

52,815

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Voyage expenses

 

 

951

 

 

3,074

 

 

4,192

 

 

6,970

 

Vessel operating expenses

 

 

23,852

 

 

28,538

 

 

48,736

 

 

57,665

 

General and administrative expenses (inclusive of nonvested stock amortization expense of $1,570,  $5,442,  $2,281 and $10,928, respectively)

 

 

5,752

 

 

11,589

 

 

10,661

 

 

22,158

 

Technical management fees

 

 

1,871

 

 

2,264

 

 

3,852

 

 

4,550

 

Depreciation and amortization

 

 

18,185

 

 

19,686

 

 

36,358

 

 

40,025

 

Other operating income

 

 

 —

 

 

(182)

 

 

 —

 

 

(182)

 

Impairment of vessel assets

 

 

3,339

 

 

67,594

 

 

3,339

 

 

69,278

 

(Gain) loss on sale of vessels

 

 

(1,343)

 

 

77

 

 

(7,712)

 

 

77

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

 

52,607

 

 

132,640

 

 

99,426

 

 

200,541

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

 

(7,237)

 

 

(100,766)

 

 

(15,807)

 

 

(147,726)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (expense) income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment of investment

 

 

 —

 

 

(2,696)

 

 

 —

 

 

(2,696)

 

Other expense

 

 

(50)

 

 

(50)

 

 

(115)

 

 

(174)

 

Interest income

 

 

338

 

 

33

 

 

512

 

 

95

 

Interest expense

 

 

(7,564)

 

 

(7,013)

 

 

(14,702)

 

 

(14,127)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expense

 

 

(7,276)

 

 

(9,726)

 

 

(14,305)

 

 

(16,902)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before reorganization items, net

 

 

(14,513)

 

 

(110,492)

 

 

(30,112)

 

 

(164,628)

 

Reorganization items, net

 

 

 —

 

 

(65)

 

 

 —

 

 

(160)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

 

(14,513)

 

 

(110,557)

 

 

(30,112)

 

 

(164,788)

 

Income tax expense

 

 

 —

 

 

(96)

 

 

 —

 

 

(350)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(14,513)

 

$

(110,653)

 

$

(30,112)

 

$

(165,138)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share-basic

 

$

(0.42)

 

$

(15.32)

 

$

(0.89)

 

$

(22.87)

 

Net loss per share-diluted

 

$

(0.42)

 

$

(15.32)

 

$

(0.89)

 

$

(22.87)

 

Weighted average common shares outstanding-basic

 

 

34,430,766

 

 

7,221,735

 

 

33,965,835

 

 

7,220,265

 

Weighted average common shares outstanding-diluted

 

 

34,430,766

 

 

7,221,735

 

 

33,965,835

 

 

7,220,265

 

 

See accompanying notes to condensed consolidated financial statements.

5


 

Genco Shipping & Trading Limited

Condensed Consolidated Statements of Comprehensive Loss

For the Three and Six Months Ended June 30, 2017 and 2016

(U.S. Dollars in Thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Six Months Ended

 

 

 

June 30, 

 

June 30, 

 

 

    

2017

    

2016

    

2017

    

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(14,513)

 

$

(110,653)

 

$

(30,112)

 

$

(165,138)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive loss

 

 

 —

 

 

(864)

 

 

 —

 

 

(5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive loss

 

$

(14,513)

 

$

(111,517)

 

$

(30,112)

 

$

(165,143)

 

 

See accompanying notes to condensed consolidated financial statements.

6


 

Genco Shipping & Trading Limited

Condensed Consolidated Statements of Equity

For the Six Months Ended June 30, 2017 and 2016

(U.S. Dollars in Thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

Series A

 

 

 

 

Additional

 

Comprehensive

 

 

 

 

 

 

 

 

Preferred

 

Common

 

Paid-in

 

Income

 

Retained

 

 

 

 

 

Stock

 

Stock

 

Capital

 

(Loss)

 

Deficit

 

Total Equity

 

Balance — January 1, 2017

 

$

120,789

 

$

74

 

$

1,503,784

 

$

 —

 

$

(594,948)

 

$

1,029,699

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(30,112)

 

 

(30,112)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conversion of 27,061,856 shares of Series A Preferred Stock

 

 

(120,789)

 

 

270

 

 

120,519

 

 

 

 

 

 

 

 

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of 18,234 shares of vested RSUs

 

 

 

 

 

 —

 

 

 —

 

 

 

 

 

 

 

 

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonvested stock amortization

 

 

 

 

 

 

 

 

2,281

 

 

 

 

 

 

 

 

2,281

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance — June 30, 2017

 

$

 —

 

$

344

 

$

1,626,584

 

$

 —

 

$

(625,060)

 

$

1,001,868

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

Series A

 

 

 

 

Additional

 

Comprehensive

 

 

 

 

 

 

 

 

Preferred

 

Common

 

Paid-in

 

Income

 

Retained

 

 

 

 

 

 

Stock

 

Stock

 

Capital

 

(Loss)

 

Deficit

 

Total Equity

 

Balance — January 1, 2016

 

$

 —

 

$

73

 

$

1,483,105

 

$

(21)

 

$

(377,191)

 

$

1,105,966

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(165,138)

 

 

(165,138)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

(5)

 

 

 

 

 

(5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of 61,244 shares of nonvested stock

 

 

 

 

 

 1

 

 

(1)

 

 

 

 

 

 

 

 

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of 3,138 shares of vested RSUs

 

 

 

 

 

 —

 

 

 —

 

 

 

 

 

 

 

 

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonvested stock amortization

 

 

 

 

 

 

 

 

10,928

 

 

 

 

 

 

 

 

10,928

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance - June 30, 2016

 

$

 —

 

$

74

 

$

1,494,032

 

$

(26)

 

$

(542,329)

 

$

951,751

 

 

See accompanying notes to condensed consolidated financial statements.

7


 

Genco Shipping & Trading Limited

Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2017 and 2016

(U.S. Dollars in Thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended

 

 

 

June 30, 

 

 

    

2017

    

2016

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net loss

 

$

(30,112)

 

$

(165,138)

 

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

 

36,358

 

 

40,025

 

Amortization of deferred financing costs

 

 

1,153

 

 

1,458

 

PIK interest, net

 

 

3,028

 

 

 —

 

Amortization of nonvested stock compensation expense

 

 

2,281

 

 

10,928

 

Impairment of vessel assets

 

 

3,339

 

 

69,278

 

(Gain) loss on sale of vessels

 

 

(7,712)

 

 

77

 

Impairment of investment

 

 

 —

 

 

2,696

 

Realized loss on sale of investment

 

 

 —

 

 

92

 

Change in assets and liabilities:

 

 

 

 

 

 

 

Decrease in due from charterers

 

 

3,940

 

 

2,337

 

(Increase) decrease in prepaid expenses and other current assets

 

 

(6,683)

 

 

2,131

 

Decrease in accounts payable and accrued expenses

 

 

(1,406)

 

 

(4,338)

 

Increase (decrease) in deferred revenue

 

 

160

 

 

(63)

 

Increase in lease obligations

 

 

360

 

 

360

 

Deferred drydock costs incurred

 

 

(5,291)

 

 

(1,073)

 

Net cash used in operating activities

 

 

(585)

 

 

(41,230)

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchase of vessels, including deposits

 

 

(252)

 

 

(380)

 

Purchase of other fixed assets

 

 

(65)

 

 

(207)

 

Net proceeds from sale of vessels

 

 

15,513

 

 

1,923

 

Sale of AFS securities

 

 

 —

 

 

2,361

 

Changes in deposits of restricted cash

 

 

1,826

 

 

 —

 

Net cash provided by investing activities

 

 

17,022

 

 

3,697

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

Repayments on the $400 Million Credit Facility

 

 

(200)

 

 

 —

 

Repayments on the $100 Million Term Loan Facility

 

 

 —

 

 

(3,846)

 

Repayments on the $253 Million Term Loan Facility

 

 

 —

 

 

(10,150)

 

Repayments on the 2015 Revolving Credit Facility

 

 

 —

 

 

(3,282)

 

Repayments on the $44 Million Term Loan Facility

 

 

 —

 

 

(1,375)

 

Repayments on the $148 Million Credit Facility

 

 

 —

 

 

(5,994)

 

Repayments on the $22 Million Term Loan Facility

 

 

 —

 

 

(750)

 

Repayments on the 2014 Term Loan Facilities

 

 

(1,381)

 

 

(1,381)

 

Cash settlement of non-accredited Note holders

 

 

 —

 

 

(101)

 

Payment of Series A Preferred Stock issuance costs

 

 

(1,103)

 

 

 —

 

Net cash used in financing activities

 

 

(2,684)

 

 

(26,879)

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

 

13,753

 

 

(64,412)

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

 

133,400

 

 

121,074

 

Cash and cash equivalents at end of period

 

$

147,153

 

$

56,662

 

 

See accompanying notes to condensed consolidated financial statements.

8


 

Genco Shipping & Trading Limited

(U.S. Dollars in Thousands, Except Per Share and Share Data)

Notes to Condensed Consolidated Financial Statements (unaudited)

 

1 - GENERAL INFORMATION

 

The accompanying condensed consolidated financial statements include the accounts of Genco Shipping & Trading Limited (“GS&T”) and its direct and indirect wholly-owned subsidiaries (collectively, the “Company”). The Company is engaged in the ocean transportation of drybulk cargoes worldwide through the ownership and operation of drybulk carrier vessels. GS&T is incorporated under the laws of the Marshall Islands, and as of June 30, 2017, is the direct or indirect owner of all of the outstanding shares or limited liability company interests of the following subsidiaries: Genco Ship Management LLC; Genco Investments LLC; Genco RE Investments LLC; Baltic Trading Limited; and the ship-owning subsidiaries as set forth below under “Other General Information.”  As of June 30, 2017, Genco Ship Management LLC is the sole owner of all of the outstanding limited liability company interests of Genco Management (USA) LLC (“Genco (USA)”).

 

On April 15, 2016, the shareholders of the Company approved, at a Special Meeting of Shareholders (the “Special Meeting”), proposals to amend the Second Amended and Restated Articles of Incorporation of the Company to (i) increase the number of authorized shares of common stock of the Company from 250,000,000 to 500,000,000 and (ii) authorize the issuance of up to 100,000,000 shares of preferred stock, in one or more classes or series as determined by the Board of Directors of the Company. The authorized shares did not change as a result of the reverse stock split as discussed below. Following the Special Meeting on such date, the Company filed Articles of Amendment of its Second Amended and Restated Articles of Incorporation with the Registrar of Corporations of the Republic of the Marshall Islands to implement to the foregoing amendments. Additionally, at the Special Meeting, the shareholders of the Company approved a proposal to amend the Second Amended and Restated Articles of Incorporation of the Company to effect a reverse stock split of the issued and outstanding shares of Common Stock at a ratio between 1-for-2 and 1-for-25 with such reverse stock split to be effective at such time and date, if at all, as determined by the Board of Directors of the Company, but no later than one year after shareholder approval thereof.  

 

On July 7, 2016, the Company completed a one-for-ten reverse stock split of its common stock.  As a result, all share and per share information included for all periods presented in these condensed consolidated financial statements reflect the reverse stock split.  Refer to Note 6 — Net Loss per Common Share and Note 17 — Stock-Based Compensation. 

 

On October 13, 2016, Peter C. Georgiopoulos resigned as Chairman of the Board and a director of the Company.  The Board of Directors appointed Arthur L. Regan, a current director of the Company, as Interim Executive Chairman of the Board.  In connection with his departure, Mr. Georgiopoulos entered into a Separation Agreement and a Release Agreement with the Company on October 13, 2016.  Under the terms of these agreements, subject to customary conditions, Mr. Georgiopoulos received an amount equal to the annual Chairman’s fee awarded to him in recent years of $500 as a severance payment and full vesting of his unvested equity awards, which consisted of grants of 68,581 restricted shares of the Company’s common stock and warrants exercisable for approximately 213,937 shares of the Company’s common stock with an exercise price per share ranging $259.10 to $341.90.  Refer to Note 17 — Stock-Based Compensation.  The agreements also contain customary provisions pertaining to confidential information, releases of claims by Mr. Georgiopoulos, and other restrictive covenants.

 

On November 15, 2016, pursuant to the Purchase Agreements (as defined in Note 8 — Debt), the Company completed the private placement of 27,061,856 shares of Series A Convertible Preferred Stock (“Series A Preferred Stock”) which included 25,773,196 shares at a price per share of $4.85 and an additional 1,288,660 shares issued as a commitment fee on a pro rata basis.  The Company received net proceeds of $120,789 after deducting placement agents’ fees and expenses.  On January 4, 2017, the Company’s shareholders approved at a Special Meeting of Shareholders the issuance of up to 27,061,856 shares of common stock of the Company upon the conversion of shares of the Series A Preferred Stock, par value $0.01 per share, which were purchased by certain investors in a private placement (the “Conversion Proposal”).  As a result of shareholder approval of the Conversion Proposal, all outstanding 27,061,856 shares of Series A Preferred Stock were automatically and mandatorily converted into 27,061,856 shares of common stock of the Company on January 4, 2017.

 

9


 

Other General Information

 

Below is the list of the Company’s wholly owned ship-owning subsidiaries as of June 30, 2017:

 

 

 

 

 

 

 

 

 

 

 

Wholly Owned Subsidiaries

    

Vessel Acquired

    

Dwt

    

Delivery Date

    

Year Built

 

 

 

 

 

 

 

 

 

 

 

Genco Vigour Limited

 

Genco Vigour

 

73,941

 

12/15/04