Genco Shipping & Trading Limited Amends $1.4 Billion Credit Facility

NEW YORK, Jan 26, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- Enhances Financial Flexibility

Genco Shipping & Trading Limited (NYSE: GNK) today announced that it has entered into an agreement to amend the Company's $1.4 billion credit facility. DnB NOR Bank ASA and Bank of Scotland PLC acted as the lead arrangers of the ten-year facility.

Under terms of the amended ten-year $1.4 billion facility, the collateral maintenance requirement will be waived until such time that Genco is in a position to satisfy the covenant and certain other conditions. Genco will continue to be able to borrow the undrawn portion of the loan during the waiver period. Amounts borrowed under the amended facility begin to reduce on March 31, 2009 at $12.5 million per quarter and will bear interest at LIBOR plus 2.00%.

Genco plans to fund the three remaining Capesize newbuildings expected to be delivered in 2009 with the undrawn portion of its credit facility as well as cash flow from operations. Currently, Genco has approximately 67% of its fleet's estimated available days secured on contracts for the remainder of 2009.

The Company also announced that, under the terms of the amended credit facility, its cash dividends and its share repurchases will be suspended, effective immediately. Genco will be able to reinstate its dividend policy and share repurchase program once the Company can represent that it is in a position to again satisfy the collateral maintenance covenant. The amendment to the credit facility places no further restrictions on uses of the Company's cash.

John C. Wobensmith, CFO, commented, "During a time when Genco's modern fleet continues to generate stable revenue and cash flow, management has taken further important steps aimed at ensuring that the Company emerges from the current market environment as a leader in the industry. With the amendment of its $1.4 billion credit facility, Genco has both solidified the Company's ability to fund its remaining three vessels and increased its financial flexibility. We believe that the favorable long-term fundamentals in the drybulk industry remain intact and the Company is in a strong position to seek opportunities to take advantage of the current weakness in the drybulk industry for the benefit of shareholders."

About Genco Shipping & Trading Limited
Genco Shipping & Trading Limited transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes. Genco Shipping & Trading Limited currently owns a fleet of 32 drybulk vessels consisting of six Capesize, eight Panamax, four Supramax, six Handymax and eight Handysize vessels, with an aggregate carrying capacity of approximately 2,396,000 dwt. After the expected delivery of three vessels the Company has agreed to acquire, Genco Shipping & Trading Limited will own a fleet of 35 drybulk vessels, consisting of nine Capesize, eight Panamax, four Supramax, six Handymax and eight Handysize vessels, with an aggregate carrying capacity of approximately 2,908,000 dwt.

Genco Shipping & Trading Limited