Sale of car carrier as a prerequisite for implementation of restructuring and release agreements with banks

Hamburg - 11 May 2017

Last week, MS Mare Berlin Schiffahrts GmbH, a subsidiary fully owned by Marenave Schiffahrts AG (Marenave or the Company), entered into an agreement for the sale of its car carrier, the most valuable ship in Marenave’s fleet. In parallel with this transaction, in the course of last week arrangements have been made with both the purchaser and the charterer – with the current charterer remaining in place – to the effect that the purchaser of the ship will take over the existing charter party in respect of rights and obligations going forward. The aforementioned agreements will become effective upon the fulfilment of certain conditions precedent.

Under both the agreement on restructuring and release of liability and the waiver and collateral realization agreement entered into on 31 March 2017 by and between Marenave, the single-ship companies in the Marenave Group and the majority of banks financing the Marenave fleet (see the relevant ad hoc notification of 31 March 2017), the conclusion of the present sale agreement, as part of the agreed sale of the entire Marenave fleet, is a necessary step for the release of Marenave from all liabilities used as collateral to secure its ship financing loans and is thus a condition for the successful restructuring of the Company. In addition to the above, Marenave’s release from liability also requires that, after an existing bank loan for the ship itself is first repaid, a portion of the proceeds from the sale of the car carrier ship be distributed to the majority of banks financing the Marenave fleet in order to partly repay the ship financing loans they granted.

Another portion of the surplus proceeds from the sale of the car carrier ship will be retained by Marenave. This portion is set to be used in the near future to finance Company operations and to finance the preparation of capitalisation measures to be resolved upon at the Company’s general meeting, which are aimed at building up a new fleet and carrying out maritime projects. The retention of these liquid funds is also ultimately a condition required by the investment consortium led by the Offen Group and DEVK insurance, with Marenave having already entered into an investment agreement with both of these entities (see the relevant ad hoc notification of 20 February 2017).

Marenave Schiffahrts AG
Marenave is Germany’s first stock-listed shipping company structured as a stock corporation (AG). It was developed to give both institutional and private investors the opportunity to make a long-term investment in shipping and to diversify their portfolio in the process.

Please visit www.marenave.com for information concerning Marenave. Marenave shares are traded on the Regulated Market of the Hamburg Stock Exchange.

WKN: A0H1GY
ISIN: DE000A0H1GY2
Symbol: M5S
Marenave Schiffahrts AG

Marenave Schiffahrts AG is the first publicly traded German shipping company organized as a joint-stock corporation under German law (AG, Aktiengesellschaft). It was developed so institutional and retail investors could obtain long-term exposure to the shipping market and diversify their portfolios further. Marenave Schiffahrts AG manages a fleet that currently comprises a total of thirteen vessels operating in all major segments of the shipping industry: six panamax and handymax product/chemical tankers, two 1,200 TEU container vessels, one car carrier and four Supramax bulkers.

For more information about Marenave Schiffahrts AG, please visit www.marenave.com. The shares of Marenave Schiffahrts AG are presently traded on the regulated market of the Hamburg Stock Exchange.

Marenave Schiffahrts AG, press release


Image by Marenave Schiffahrts AG