What are the details relating to the loan covenant breach and the status of the discussion with the banks regarding the same?
The said breach is related to our credit facilities for the subsea vessels acquired during the financial year and tied to our earnings. Mermaid made a net loss during the year resulting in the breach. In relation to this breach, we’ll like to highlight the following : • We had used a portion of the proceeds from the rights issue to pay for these vessels and hence had not drawn down on the said facilities fully • We had already commenced discussions with the lenders and the response has been very favorable, with the bank granting us waiver from the related covenant. • Regardless of the favorable feedback from the lenders, we are currently exploring options to allow Mermaid to efficiently restructure or refinance the credit facilities that are currently in breach.
