Gulf Navigation Holding PJSC (DFM: GULFNAV), the Dubai-based shipping company, has signed a settlement agreement with one of its major creditors, Nordic American Tankers Limited, Bermuda (NAT).
The positive development was announced 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 per cent to AED 10.042 million (USD 2.74 million) in the first half of 2015 amidst intensive efforts to address creditor issues. GULFNAV now has a total capital of AED 551.7 million.
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 Chairman of Gulf Navigation Holding PJSC, said: “We appreciate the full support given by our shareholders, investors and government regulators in our 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. Our exceptional profit for the first half of this year validates our improving financial position and we expect to direct our focus more on future growth in the coming months.”
GULFNAV has recently appointed Capt. Parag Jain as its Acting CEO as part of the company’s restructuring efforts. Capt. Jain is a seasoned maritime professional with over 20 years of diversified industry experience.
Gulf Navigation Holding PJSC and its group of companies own and operate a fleet of chemical tankers and auxiliary crew boats. It is the only maritime and shipping company listed on the Dubai Financial Market (under the symbol GULFNAV). Headquartered in Dubai with an overseas office in the Kingdom of Saudi Arabia, the fully integrated ship-owning company operates from all ports in the UAE. GULFNAV is accredited by international certification body Det Norske Veritas for both International Safety Management (ISM) and International Ship Security Certification (ISPS Code).
It is also ISO 9001:2008 (Quality Management System) accredited through Bureau Veritas, a global leader in Testing, Inspection and Certification (TIC).