Global Ports Holding (GPH), the world’s largest independent cruise port operator, has provided an update on the January refinancing of the $250 mill 8.125% Senior Unsecured Notes, due 2021 issued by its wholly owned subsidiary Global Liman İşletmeleri.
GPH said that the spread of COVID-19 and the recent developments surrounding the global pandemic have had negative impacts on all aspects of the Group’s business and at times last year there was a complete suspension of cruise industry activity.
This resulted in high levels of cancellation and the suspension of cruise vessel sailings in most regions until conditions permit them to resume. As a result of these challenging trading conditions triggered by these events, the Group experienced a rapid negative impact on its business.
The continued magnitude, duration and speed of the global pandemic, and the Group’s ability to estimate the impact on its future prospects, is uncertain, GPH said.
The extent to which COVID-19 will continue to impact the Group’s results will depend on future developments, which a cannot be predicted, including new information, which may emerge concerning the severity of COVID-19 and the actions taken or being continued to contain it or treat its impact.
GPH said that it could not predict when global cruise operations were likely to resume or when or if its cruise port operations will generate revenue at the levels observed before the pandemic’s onset.
The total principal amount of the notes remained outstanding and will, together with accrued and unpaid interest and additional amounts (if any), become due on 14th November, 2021. Interest is due and payable on the notes on 14th May and 14th November.
As a result of the above, GPH said that it did not expect to be able to repay the notes in full on the existing notes maturity date.
To this end, the Issuer that it is contemplating a scheme of arrangement in connection with the refinancing and has entered into discussions with certain key existing note holders who collectively hold about 40% of the outstanding notes and have formed an ad hoc committee (AHG) in order that they may evaluate the proposed refinancing.
No agreement had been reached with the AHG and on 4th February, 2021 the issuer received a counterproposal from the AHG, which it is currently considering.