Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 15, 2016 | Jun. 30, 2015 | |
Document and Entity Information | |||
Entity Registrant Name | GENCO SHIPPING & TRADING LTD | ||
Entity Central Index Key | 1,326,200 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 238.2 | ||
Entity Common Stock, Shares Outstanding | 72,901,370 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 121,074 | $ 83,414 |
Restricted cash | 19,500 | 9,750 |
Due from charterers, net | 10,586 | 14,739 |
Prepaid expenses and other current assets | 21,369 | 22,423 |
Total current assets | 172,529 | 130,326 |
Noncurrent assets: | ||
Vessels, net of accumulated depreciation of $107,998 and $36,258, respectively | 1,508,221 | 1,532,843 |
Deposits on vessels | 0 | 25,593 |
Deferred drydock, net of accumulated amortization of $3,207 and $330, respectively | 16,177 | 6,234 |
Deferred financing costs, net of accumulated amortization of $3,107 and $729, respectively | 12,705 | 10,271 |
Fixed assets, net of accumulated depreciation and amortization of $404 and $119, respectively | 1,286 | 701 |
Other noncurrent assets | 514 | 514 |
Restricted cash | 315 | 19,945 |
Investments | 12,327 | 26,486 |
Total noncurrent assets | 1,551,545 | 1,622,587 |
Total assets | 1,724,074 | 1,752,913 |
Current liabilities: | ||
Accounts payable and accrued expenses | 27,467 | 28,217 |
Current portion of long-term debt | 588,434 | 34,324 |
Deferred revenue | 1,058 | 1,397 |
Total current liabilities: | 616,959 | 63,938 |
Noncurrent liabilities: | ||
Long-term lease obligations | 1,149 | 390 |
Long-term debt | 395,811 | |
Total noncurrent liabilities | 1,149 | 396,201 |
Total liabilities | $ 618,108 | $ 460,139 |
Commitments and contingencies | ||
Genco Shipping & Trading Limited shareholders' equity: | ||
Successor Company common stock, par value $0.01; 250,000,000 shares authorized; issued and outstanding 72,898,234 and 61,541,389 shares at December 31, 2015 and 2014, respectively | $ 728 | $ 615 |
Successor company additional paid-in capital | 1,482,450 | 1,251,197 |
Accumulated other comprehensive loss | (21) | (25,317) |
Retained deficit | (377,191) | (182,294) |
Total Genco Shipping & Trading Limited shareholders' equity | 1,105,966 | 1,044,201 |
Noncontrolling interest | 248,573 | |
Total equity | 1,105,966 | 1,292,774 |
Total liabilities and equity | $ 1,724,074 | $ 1,752,913 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Noncurrent assets: | ||
Vessels, accumulated depreciation | $ 107,998 | $ 36,258 |
Deferred drydock, accumulated amortization | 3,207 | 330 |
Deferred financing costs, accumulated amortization | 3,107 | 729 |
Fixed assets, accumulated depreciation and amortization | $ 404 | $ 119 |
Genco Shipping & Trading Limited shareholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 72,898,234 | 61,541,389 |
Common stock, shares outstanding (in shares) | 72,898,234 | 61,541,389 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Jul. 09, 2014 | Dec. 31, 2015 | Dec. 31, 2013 | |
Revenues: | ||||
Voyage revenues | $ 98,817 | $ 150,784 | ||
Service revenues | 1,584 | 3,175 | ||
Total revenues | 100,401 | 153,959 | ||
Operating expenses: | ||||
Voyage expenses | 7,525 | 20,257 | ||
Vessel operating expenses | 56,943 | 122,008 | ||
General, administrative, and management fees | 36,915 | 83,902 | ||
Depreciation and amortization | 36,714 | 79,556 | ||
Other operating income | (530) | 0 | ||
Impairment of vessel assets | 0 | 39,893 | ||
Loss on sale of vessels | 1,210 | |||
Goodwill impairment | 166,067 | |||
Total operating expenses | 303,634 | 346,826 | ||
Operating loss | (203,233) | (192,867) | ||
Other (expense) income: | ||||
Impairment of investment | 0 | (37,877) | ||
Other (expense) income | 36 | (796) | ||
Interest income | 46 | 110 | ||
Interest expense | (7,620) | (20,032) | ||
Other expense | (7,538) | (58,595) | ||
Loss before reorganization items, net | (210,771) | (251,462) | ||
Reorganization items, net | (1,591) | (1,085) | ||
Loss before income taxes | (212,362) | (252,547) | ||
Income tax expense | (996) | (1,821) | ||
Net loss | (213,358) | (254,368) | ||
Less: Net loss attributable to noncontrolling interest | (31,064) | (59,471) | ||
Net loss attributable to Genco Shipping & Trading Limited | $ (182,294) | $ (194,897) | ||
Net loss per share-basic | $ (3.02) | $ (2.96) | ||
Net loss per share-diluted | $ (3.02) | $ (2.96) | ||
Weighted average common shares outstanding-basic | 60,360,515 | 65,831,637 | ||
Weighted average common shares outstanding-diluted | 60,360,515 | 65,831,637 | ||
Predecessor | ||||
Revenues: | ||||
Voyage revenues | $ 118,759 | $ 224,179 | ||
Service revenues | 1,701 | 3,285 | ||
Total revenues | 120,460 | 227,464 | ||
Operating expenses: | ||||
Voyage expenses | 4,140 | 8,046 | ||
Vessel operating expenses | 64,670 | 111,671 | ||
General, administrative, and management fees | 31,371 | 34,031 | ||
Depreciation and amortization | 75,952 | 140,743 | ||
Other operating income | 0 | (121) | ||
Impairment of vessel assets | 0 | 0 | ||
Total operating expenses | 176,133 | 294,370 | ||
Operating loss | (55,673) | (66,906) | ||
Other (expense) income: | ||||
Impairment of investment | 0 | 0 | ||
Other (expense) income | (106) | (76) | ||
Interest income | 45 | 75 | ||
Interest expense | (41,061) | (88,216) | ||
Other expense | (41,122) | (88,217) | ||
Loss before reorganization items, net | (96,795) | (155,123) | ||
Reorganization items, net | (915,640) | |||
Loss before income taxes | (1,012,435) | (155,123) | ||
Income tax expense | (815) | (1,898) | ||
Net loss | (1,013,250) | (157,021) | ||
Less: Net loss attributable to noncontrolling interest | (62,101) | (9,280) | ||
Net loss attributable to Genco Shipping & Trading Limited | $ (951,149) | $ (147,741) | ||
Net loss per share-basic | $ (21.83) | $ (3.42) | ||
Net loss per share-diluted | $ (21.83) | $ (3.42) | ||
Weighted average common shares outstanding-basic | 43,568,942 | 43,249,070 | ||
Weighted average common shares outstanding-diluted | 43,568,942 | 43,249,070 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | Jul. 09, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Jul. 09, 2014 | Dec. 31, 2015 | Dec. 31, 2013 |
Net loss | $ (49,498) | $ (73,803) | $ (51,952) | $ (79,115) | $ (190,795) | $ (22,562) | $ (213,358) | $ (254,368) | |||||
Change in unrealized gain/loss on investments | (25,317) | 25,296 | |||||||||||
Other comprehensive income (loss) | (25,317) | 25,296 | |||||||||||
Comprehensive loss | (238,675) | (229,072) | |||||||||||
Less: Comprehensive loss attributable to noncontrolling interest | (31,064) | (59,471) | |||||||||||
Comprehensive loss attributable to Genco Shipping & Trading Limited | $ (207,611) | $ (169,601) | |||||||||||
Predecessor | |||||||||||||
Net loss | $ (905,455) | $ (65,557) | $ (42,238) | $ (1,013,250) | $ (157,021) | ||||||||
Change in unrealized gain/loss on investments | (25,766) | 56,482 | |||||||||||
Unrealized gain on cash flow hedges, net | 2,401 | 9,081 | |||||||||||
Other comprehensive income (loss) | (23,365) | 65,563 | |||||||||||
Comprehensive loss | (1,036,615) | (91,458) | |||||||||||
Less: Comprehensive loss attributable to noncontrolling interest | (62,101) | (9,280) | |||||||||||
Comprehensive loss attributable to Genco Shipping & Trading Limited | $ (974,514) | $ (82,178) |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Genco Shipping & Trading Limited Shareholders' Equity | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | Retained (Deficit) Earnings | Noncontrolling Interest | Total |
Balance (Predecessor) at Dec. 31, 2012 | $ 1,066,296 | $ 443 | $ 863,303 | $ (11,841) | $ 214,391 | $ 194,911 | $ 1,261,207 |
Increase (Decrease) in Shareholders' Equity | |||||||
Net loss | Predecessor | (147,741) | (147,741) | (9,280) | (157,021) | |||
Other comprehensive income | Predecessor | 65,563 | ||||||
Change in unrealized gain/loss on investments | Predecessor | 56,482 | 56,482 | 56,482 | ||||
Unrealized gain on cash flow hedges, net | Predecessor | 9,081 | 9,081 | 9,081 | ||||
Issuance of shares of nonvested stock, less forfeitures | Predecessor | 2 | (2) | |||||
Nonvested stock amortization | Predecessor | 2,924 | 2,924 | 1,558 | 4,482 | |||
Issuance of common stock of Baltic Trading Limited | Predecessor | (19,532) | (19,532) | 155,695 | 136,163 | |||
Cash dividends paid by Baltic Trading Limited | Predecessor | (6) | (6) | (1,583) | (1,589) | |||
Vesting of restricted shares issued by Baltic Trading Limited | Predecessor | (35) | (35) | 35 | ||||
Balance (Predecessor) at Dec. 31, 2013 | 967,469 | 445 | 846,658 | 53,722 | 66,644 | 341,336 | 1,308,805 |
Increase (Decrease) in Shareholders' Equity | |||||||
Net loss | Predecessor | (951,149) | (951,149) | (62,101) | (1,013,250) | |||
Other comprehensive income | Predecessor | (23,365) | ||||||
Change in unrealized gain/loss on investments | Predecessor | (25,766) | (25,766) | (25,766) | ||||
Unrealized gain on cash flow hedges, net | Predecessor | 2,401 | 2,401 | 2,401 | ||||
Nonvested stock amortization | Predecessor | 2,403 | 2,403 | 1,949 | 4,352 | |||
Cash dividends paid by Baltic Trading Limited | Predecessor | (5) | (5) | (2,041) | (2,046) | |||
Vesting of restricted shares issued by Baltic Trading Limited | Predecessor | 74 | 74 | (74) | ||||
Balance at Jul. 09, 2014 | 1,233,000 | 603 | 1,232,397 | 279,069 | 1,512,069 | ||
Increase (Decrease) in Shareholders' Equity | |||||||
Subtotal - July 9, 2014 (Predecessor) | Predecessor | (4,573) | 445 | 849,130 | 30,357 | (884,505) | 279,069 | 274,496 |
Net loss | (182,294) | (182,294) | (31,064) | (213,358) | |||
Other comprehensive income | (25,317) | ||||||
Change in unrealized gain/loss on investments | (25,317) | (25,317) | (25,317) | ||||
Issuance of shares of nonvested stock, less forfeitures | 11 | (11) | |||||
Issuance of common stock (11,287,132 and 131,017 during the year ended December 31, 2015 and the period from July 9 to December 31, 2014) | 1 | (1) | |||||
Nonvested stock amortization | 18,854 | 18,854 | 1,551 | 20,405 | |||
Cash dividends paid by Baltic Trading Limited | (3) | (3) | (1,022) | (1,025) | |||
Vesting of restricted shares issued by Baltic Trading Limited | (39) | (39) | 39 | ||||
Balance at Dec. 31, 2014 | 1,044,201 | 615 | 1,251,197 | (25,317) | (182,294) | 248,573 | 1,292,774 |
Increase (Decrease) in Shareholders' Equity | |||||||
Net loss | (194,897) | (194,897) | (59,471) | (254,368) | |||
Other comprehensive income | 25,296 | 25,296 | 25,296 | ||||
Change in unrealized gain/loss on investments | 25,296 | ||||||
Settlement of non-accredited Note holders | (462) | (462) | (462) | ||||
Equity effect of purchase of entities under common control | 590 | 590 | 590 | ||||
Issuance of common stock (11,287,132 and 131,017 during the year ended December 31, 2015 and the period from July 9 to December 31, 2014) | 113 | (113) | |||||
Elimination of non-controlling interest due to Merger | 194,375 | 194,375 | (194,375) | ||||
Nonvested stock amortization | 36,863 | 36,863 | $ 5,273 | 42,136 | |||
Balance at Dec. 31, 2015 | $ 1,105,966 | $ 728 | $ 1,482,450 | $ (21) | $ (377,191) | $ 1,105,966 |
Consolidated Statements of Equ7
Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Millions | Jul. 09, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Issuance of common stock (in shares) | 131,017 | ||
Issuance of shares of nonvested stock (in shares) | 1,110,600 | ||
Predecessor | |||
Issuance of new equity interests in connection with emergence from Chapter 11 in connection with the Rights Offering | $ 100 | ||
Issuance of new equity interests in connection with emergence from Chapter 11 in connection with the Rights Offering (in shares) | 60,299,757 | ||
Issuance of shares of nonvested stock (in shares) | 200,634 | ||
Issuance of shares of nonvested stock, forfeitures (in shares) | 21,500 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Jul. 09, 2014 | Dec. 31, 2015 | Dec. 31, 2013 | |
Cash flows from operating activities: | ||||
Net loss | $ (213,358) | $ (254,368) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Goodwill impairment | 166,067 | |||
Depreciation and amortization | 36,714 | 79,556 | ||
Amortization of deferred financing costs | 845 | 2,379 | ||
Amortization of time charters acquired | 450 | |||
Amortization of nonvested stock compensation expense | 20,405 | 42,136 | ||
Impairment of vessel assets | 0 | 39,893 | ||
Loss on disposal of vessels | 900 | |||
Impairment of investment | 0 | 37,877 | ||
Realized loss on sale of investment | 724 | |||
Change in assets and liabilities: | ||||
Decrease (increase) in due from charterers | (1,545) | 4,153 | ||
Decrease (increase) in prepaid expenses and other current assets | 8,343 | 1,181 | ||
Increase (decrease) in accounts payable and accrued expenses | (39,170) | 1,883 | ||
(Decrease) increase in deferred revenue | 400 | (339) | ||
Increase in lease obligations | 390 | 759 | ||
Deferred drydock costs incurred | (6,376) | (12,820) | ||
Net cash used in operating activities | (26,835) | (56,086) | ||
Cash flows from investing activities: | ||||
Purchase of vessels, including deposits | (24,473) | (66,590) | ||
Purchase of other fixed assets | (208) | (770) | ||
Sale of AFS securities | 706 | |||
Changes in deposits of restricted cash | (19,420) | 9,880 | ||
Net cash used in investing activities | (44,101) | (56,774) | ||
Cash flows from financing activities: | ||||
Payment of dividend by subsidiary | (1,025) | |||
Cash settlement of non-accredited Note holders | (484) | (777) | ||
Payment of deferred financing costs | (2,322) | (7,003) | ||
Net cash provided by financing activities | 18,273 | 150,520 | ||
Net increase (decrease) in cash and cash equivalents | (52,663) | 37,660 | ||
Cash and cash equivalents at beginning of period | 136,077 | 83,414 | ||
Cash and cash equivalents at end of period | 83,414 | $ 136,077 | 121,074 | |
Secured Debt | $100 Million Term Loan Facility | ||||
Cash flows from financing activities: | ||||
Repayments on Term Loan Facility | (3,846) | (7,692) | ||
Secured Debt | $253 Million Term Loan Facility | ||||
Cash flows from financing activities: | ||||
Repayments on Term Loan Facility | (5,075) | (20,300) | ||
Proceeds from credit facility | 253,000 | |||
Secured Debt | $44 Million Term Loan Facility | ||||
Cash flows from financing activities: | ||||
Repayments on Term Loan Facility | (1,375) | (2,750) | ||
Secured Debt | $22 Million Term Loan Facility | ||||
Cash flows from financing activities: | ||||
Repayments on Term Loan Facility | (750) | (1,500) | ||
Secured Debt | 2014 Term Loan Facilities | ||||
Cash flows from financing activities: | ||||
Repayments on Term Loan Facility | (2,081) | |||
Proceeds from Term Loan Facility | 33,150 | |||
Revolving credit facility | 2015 Revolving Credit Facility | ||||
Cash flows from financing activities: | ||||
Proceeds from credit facility | 56,218 | |||
Line of Credit facility | $98 Million Credit Facility | ||||
Cash flows from financing activities: | ||||
Proceeds from credit facility | 98,271 | |||
Line of Credit facility | $148 Million Credit Facility | ||||
Cash flows from financing activities: | ||||
Proceeds from credit facility | 148,000 | |||
Repayment of line of credit facility | (7,616) | |||
Line of Credit facility | 2010 Credit Facility | ||||
Cash flows from financing activities: | ||||
Repayment of line of credit facility | $ (102,250) | |||
Predecessor | ||||
Cash flows from operating activities: | ||||
Net loss | (1,013,250) | $ (157,021) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Non-cash reorganization items and fresh-start reporting adjustments, net | 880,408 | |||
Depreciation and amortization | 75,952 | 140,743 | ||
Amortization of deferred financing costs | 4,461 | 9,116 | ||
Amortization of time charters acquired | (68) | (334) | ||
Amortization of discount on Convertible Senior Notes | 1,592 | 4,963 | ||
Receipt of stock in lieu of cash payment | (100) | |||
Interest expense related to the de-designation of the interest rate swap | 1,048 | |||
Unrealized loss on derivative instruments | 4 | |||
Amortization of nonvested stock compensation expense | 4,352 | 4,482 | ||
Impairment of vessel assets | 0 | 0 | ||
Impairment of investment | 0 | 0 | ||
Change in assets and liabilities: | ||||
Decrease (increase) in due from charterers | 1,047 | (2,527) | ||
Decrease (increase) in prepaid expenses and other current assets | (11,735) | (919) | ||
Increase (decrease) in accounts payable and accrued expenses | 32,534 | 2,765 | ||
(Decrease) increase in deferred revenue | (600) | 273 | ||
Increase in lease obligations | 195 | 143 | ||
Deferred drydock costs incurred | (9,253) | (4,732) | ||
Net cash used in operating activities | (33,317) | (3,144) | ||
Cash flows from investing activities: | ||||
Purchase of vessels, including deposits | (29,995) | (145,350) | ||
Purchase of other fixed assets | (415) | (1,205) | ||
Changes in deposits of restricted cash | (125) | |||
Net cash used in investing activities | (30,535) | (146,555) | ||
Cash flows from financing activities: | ||||
Payment of dividend by subsidiary | (2,046) | (1,589) | ||
Proceeds from Rights Offering | 100,000 | |||
Proceeds from issuance of common stock by subsidiary | 136,980 | |||
Payment of common stock issuance costs by subsidiary | (111) | (706) | ||
Payment of deferred financing costs | (4,515) | (1,489) | ||
Net cash provided by financing activities | 77,207 | 199,821 | ||
Net increase (decrease) in cash and cash equivalents | 13,355 | 50,122 | ||
Cash and cash equivalents at beginning of period | $ 136,077 | 122,722 | 72,600 | |
Cash and cash equivalents at end of period | 136,077 | 122,722 | ||
Predecessor | Secured Debt | $100 Million Term Loan Facility | ||||
Cash flows from financing activities: | ||||
Repayments on Term Loan Facility | (3,846) | |||
Predecessor | Secured Debt | $253 Million Term Loan Facility | ||||
Cash flows from financing activities: | ||||
Repayments on Term Loan Facility | (10,150) | |||
Predecessor | Secured Debt | $44 Million Term Loan Facility | ||||
Cash flows from financing activities: | ||||
Repayments on Term Loan Facility | (1,375) | |||
Proceeds from Term Loan Facility | 44,000 | |||
Predecessor | Secured Debt | $22 Million Term Loan Facility | ||||
Cash flows from financing activities: | ||||
Repayments on Term Loan Facility | $ (750) | (375) | ||
Proceeds from Term Loan Facility | 22,000 | |||
Predecessor | Line of Credit facility | 2010 Credit Facility | ||||
Cash flows from financing activities: | ||||
Proceeds from credit facility | $ 1,000 |
Consolidated Statements of Cas9
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Nov. 04, 2015 | Jul. 14, 2015 | Dec. 31, 2014 | Dec. 03, 2013 | Aug. 30, 2013 | Aug. 01, 2012 | Dec. 21, 2011 | Aug. 20, 2010 | Aug. 12, 2010 |
$100 Million Term Loan Facility | Secured Debt | ||||||||||
Maximum borrowing capacity | $ 100,000 | $ 100,000 | ||||||||
$100 Million Term Loan Facility | Secured Debt | Predecessor | ||||||||||
Maximum borrowing capacity | $ 100,000 | |||||||||
$100 Million Term Loan Facility | Line of Credit facility | Predecessor | ||||||||||
Maximum borrowing capacity | 100,000 | |||||||||
$253 Million Term Loan Facility | Secured Debt | ||||||||||
Maximum borrowing capacity | 253,000 | 253,000 | ||||||||
$253 Million Term Loan Facility | Secured Debt | Predecessor | ||||||||||
Maximum borrowing capacity | 253,000 | $ 253,000 | ||||||||
$253 Million Term Loan Facility | Line of Credit facility | Predecessor | ||||||||||
Maximum borrowing capacity | $ 253,000 | $ 253,000 | ||||||||
$98 Million Credit Facility | Line of Credit facility | ||||||||||
Maximum borrowing capacity | 98,000 | $ 98,000 | ||||||||
$44 Million Term Loan Facility | Secured Debt | ||||||||||
Maximum borrowing capacity | 44,000 | 44,000 | ||||||||
$44 Million Term Loan Facility | Secured Debt | Predecessor | ||||||||||
Maximum borrowing capacity | $ 44,000 | |||||||||
$148 Million Credit Facility | Line of Credit facility | ||||||||||
Maximum borrowing capacity | 148,000 | $ 148,000 | 148,000 | |||||||
$22 Million Term Loan Facility | Secured Debt | ||||||||||
Maximum borrowing capacity | 22,000 | $ 22,000 | $ 22,000 | |||||||
$22 Million Term Loan Facility | Secured Debt | Predecessor | ||||||||||
Maximum borrowing capacity | $ 22,000 | $ 22,000 |
GENERAL INFORMATION
GENERAL INFORMATION | 12 Months Ended |
Dec. 31, 2015 | |
GENERAL INFORMATION | |
GENERAL INFORMATION | 1 - GENERAL INFORMATION The accompanying consolidated financial statements include the accounts of Genco Shipping & Trading Limited (“GS&T”), its wholly-owned subsidiaries, and its wholly-owned indirect subsidiary, Baltic Trading Limited (collectively, the “Company”). The Company is engaged in the ocean transportation of drybulk cargoes worldwide through the ownership and operation of drybulk carrier vessels. GS&T is incorporated under the laws of the Marshall Islands and as of December 31, 2015, is the sole owner of all of the outstanding shares of the following subsidiaries: Genco Ship Management LLC; Genco Investments LLC; Genco RE Investments LLC; and the ship-owning subsidiaries as set forth below. As of December 31, 2015, Genco Ship Management LLC is the sole owner of all of the outstanding shares of Genco Management (USA) Limited. Liquidity, Going Concern, and Reclassification of Debt to Current Persistent weak drybulk industry conditions and historically low charter rates have negatively impacted the Company’s results of operations, cash flows, and liquidity and may continue to do so in the future. The negative impact on the Company’s liquidity, together with a continued decline in vessel values, presents difficulties for remaining in compliance with its credit facility covenants relating to minimum cash, leverage ratios, and collateral maintenance (refer to Note 9 — Debt), which could potentially result in defaults and acceleration of the repayment of its outstanding indebtedness. These factors, as well as recurring losses from operations and negative working capital, raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements have been prepared on the basis of accounting principles applicable to a going concern, which contemplates the realization of assets and extinguishment of liabilities in the normal course of business. The Company’s ability to continue as a going concern is contingent upon, among other things, its ability to: (i) develop and successfully implement a plan to address these factors, which may include refinancing the Company’s existing credit agreements, or obtaining waivers or modifications to its credit agreements from its lenders, or raising additional capital through selling assets (including vessels), reducing or delaying capital expenditures, or pursuing other options that may be available to the Company which may include pursuing strategic opportunities and equity or debt offerings; (ii) return to profitability, (iii) generating sufficient cash flow from operations, (iv) remaining in compliance with its credit facility covenants, as the same may be modified, and (v) obtaining financing sources to meet the Company’s future obligations. The realization of the Company’s assets and the satisfaction of its liabilities are subject to uncertainty. The accompanying consolidated financial statements do not include any direct adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities or any other adjustments that might be necessary should the Company be unable to continue as a going concern, except in regards to the classification of outstanding indebtedness as described below. In addition, for purposes of preparing financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), t he Company is required to disclose if it is in compliance with covenants under all of its eight credit facilities on a quarterly basis. At December 31, 2015, the Company was not in compliance with the collateral maintenance covenants under the $253 Million Term Loan Facility, 2014 Term Loan Facilities and the $22 Million Term Loan Facility. Such noncompliance does not currently constitute an event of default under any of our credit agreements and is subject to cure or waiver within the applicable grace period. The Company has been in communication with the lenders of the respective credit facilities in order to obtain short-term waivers until April 11, 2016. Furthermore, during the first quarter of 2016, the Company is not in compliance with the collateral maintenance covenant under the $100 Million Term Loan Facility and the $148 Million Credit Facility, which facilities provide for certain grace periods following non-compliance. See Note 9 — Debt for a description of each facility and the detailed information surrounding the specific shortfall and applicable cure, if any. Additionally, each of the Company’s credit facilities contain cross default provisions that could be triggered by the Company’s failure to satisfy or waive its collateral maintenance covenants, if such failure is not cured or waived within the applicable grace period. Given the foregoing noncompliance, the existence of the cross default provisions, and the absence of any current solution which would cure the noncompliance for at least the next 12 months, the Company has determined that it should classify its outstanding indebtedness as a current liability as of December 31, 2015. Merger Agreement with Baltic Trading On April 7, 201 5, the Company entered into a definitive merger agreement with Baltic Trading Limited (“Baltic Trading”) under which the Company acquired Baltic Trading in a stock-for-stock transaction (the “Merger”). Under the terms of the agreement, Baltic Trading became an indirect wholly-owned subsidiary of the Company, and Baltic Trading shareholders (other than the Company and its subsidiaries) received 0.216 shares of the Company’s common stock for each share of Baltic Trading’s common stock they owned at closing, with fractional shares settled in cash. Upon consummation of the transaction on July 17, 2015, the Company’s shareholders owned approximately 84.5% of the combined company, and former Baltic Trading’s shareholders (other than the Company and its subsidiaries) owned approximately 15.5% of the combined company. Shares of Baltic Trading’s Class B stock (all of which were owned by the Company) were canceled in the Merger. The Company’s common stock began trading on the New York Stock Exchange after consummation of the transaction on July 20, 2015. The Boards of Directors of both the Company and Baltic Trading established independent special committees to review the transaction and negotiate the terms on behalf of their respective companies. Both independent special committees unanimously approved the transaction. The Boards of Directors of both companies approved the Merger by unanimous vote of directors present and voting, with Peter C. Georgiopoulos, Chairman of the Board of each company, recused for the vote. The Merger was approved on July 17, 2015 at the 2015 Annual Meeting of Shareholders (the “Annual Meeting”). Prior to the completion of the Merger, the Company prepared its consolidated financial statements in accordance with U.S. GAAP and consolidated the operations of Baltic Trading. The Baltic Trading common shares that the Company acquired in the Merger were previously recognized as a noncontrolling interest in the consolidated financial statements of the Company. Under U.S. GAAP, changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary are considered equity transactions (i.e. transactions with owners in their capacity as owners) with any difference between the amount by which the noncontrolling interest is adjusted and the fair value of the consideration paid attributed to the equity of the parent. Accordingly, any difference between the fair value of the Company’s common shares issued in exchange for Baltic Trading common shares pursuant to the Merger is reflected as an adjustment to the equity in the Company. No gain or loss has been recognized in the Company’s Consolidated Statement of Comprehensive Loss upon completion of the transaction. Acquisition of Baltic Lion and Baltic Tiger Additionally, on April 7, 2015, the Company entered into an agreement under which the Company acquired all of the shares of two single-purpose vessel owning entities that were wholly owned by Baltic Trading, each of which owned one Capesize drybulk vessel, specifically the Baltic Lion and Baltic Tiger, for an aggregate purchase price of $68,500, subject to reduction for $40,563 of outstanding first-mortgage debt of such single-purpose entities that was guaranteed by the Company. For further details, refer to the “Impairment of long-lived assets” section in Note 2 — Summary of Significant Accounting Policies. These transactions, which closed on April 8, 2015, were accounted for pursuant to accounting guidance under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, “Business Combinations” (“ASC 805”), for transactions amongst entities under common control. Accordingly, the difference between the cash paid to Baltic Trading and the Company’s carrying value of the Baltic Lion and Baltic Tiger as of the closing date of $590 is reflected as an adjustment to Additional paid-in capital in the Consolidated Statements of Equity during the year ended December 31, 2015. The independent special committees of both companies’ Boards of Directors reviewed and approved these transactions. Bankruptcy Filing On April 21, 2014 (the “Petition Date”), GS&T and its subsidiaries other than Baltic Trading and its subsidiaries (collectively, the “Debtors”) filed voluntary petitions for relief (the “Chapter 11 Cases”) under Chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”). The Debtors continued to operate their businesses in the ordinary course as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. Through the Chapter 11 Cases, the Debtors implemented a Prepackaged Plan of Reorganization of the Debtors Pursuant to Chapter 11 of the Bankruptcy Code (the “Prepack Plan”) for which the Company solicited votes from certain classes of its creditors prior to commencement of the Chapter 11 Cases in accordance with the Restructuring Support Agreement that the Debtors entered into with certain of its creditors on April 3, 2014. The Company subsequently emerged from bankruptcy on July 9, 2014. The filing of the Chapter 11 Cases constituted an event of default with respect to each of the following agreements or instruments: · the Credit Agreement, dated as of July 20, 2007 (as amended to date), by and among the Company as borrower, the banks and other financial institutions named therein as lenders, Wilmington Trust, N.A., as successor administrative and collateral agent, and the other parties thereto, relating to approximately $1,055,912 of principal plus accrued and unpaid interest, fees, costs, and other expenses (the “2007 Credit Facility”); · the Loan Agreement, dated as of August 20, 2010 (as amended to date), by and among the Company as borrower, Genco Aquitaine Limited and the other subsidiaries of the Company named therein as guarantors, the banks and financial institutions named therein as lenders, BNP Paribas, Credit Agricole Corporate and Investment Bank, DVB Bank SE, Deutsche Bank AG Filiale Deutschlandgeschaft, Skandinaviska Enskilda Banken AB (publ) as mandated lead arrangers, BNP Paribas, Credit Agricole Corporate and Investment Bank, DVB Bank SE, Deutsche Bank AG, Skandinaviska Enskilda Banken AB (publ) as swap providers, and Deutsche Bank Luxembourg S.A. as agent for the lenders and the assignee, relating to approximately $175,718 of principal and accrued and unpaid interest, fees, costs, and other expenses (the “$253 Million Term Loan Facility”); · the Loan Agreement, dated as of August 12, 2010 (as amended to date), by and among the Company as borrower, Genco Ocean Limited and the other subsidiaries of the Company named therein as guarantors, the banks and financial institutions named therein as lenders, and Credit Agricole Corporate and Investment Bank as agent and security trustee, relating to approximately $73,561 of principal plus accrued and unpaid interest, fees, costs, and other expenses (the “$100 Million Term Loan Facility”); · the Indenture and First Supplemental Indenture relating to $125,000 of principal plus accrued and unpaid interest outstanding of the Company’s 5.00% Convertible Senior Notes (the “2010 Notes”) due August 15, 2015 (the “Indenture”); and · the outstanding interest rate swap with DNB Bank ASA, relating to a liability position of $5,622. As a result of the filing of the Chapter 11 Cases, all indebtedness outstanding under the 2007 Credit Facility and the Indenture was accelerated and became due and payable, and indebtedness under the other agreements and instruments described above were accelerated and become due and payable upon notice to the Company, subject to an automatic stay of any action to collect, assert, or recover a claim against the Company or the other Debtors and the application of the applicable provisions of the Bankruptcy Code. On July 2, 2014, the Bankruptcy Court entered an order (the “Confirmation Order”), confirming the First Amended Prepackaged Plan of Reorganization of the Debtors Pursuant to Chapter 11 of the Bankruptcy Code (the “Plan”). Capitalized terms used but not defined below shall have the meanings given to them in the Plan. On July 9, 2014 (the “Effective Date”), the Debtors completed their financial restructuring and emerged from Chapter 11 through a series of transactions contemplated by the Plan, and the Plan became effective pursuant to its terms. References to “Successor Company” refer to the Company after July 9, 2014, after giving effect to the application of fresh-start reporting (see “Financial Statement Presentation” section below). References to “Predecessor Company” refer to the Company prior to July 9, 2014. Key components of the Plan included: · The conversion of 100% of the Claims under the 2007 Credit Facility into 81.1% of the Successor Company Common Stock (subject to dilution by the warrants issued under the Plan). On the Effective Date, the 2007 Credit Facility was terminated, and the liens and mortgages thereunder were released. Refer to Note 9 — Debt for further information. · The conversion of 100% of the Claims under the 2010 Notes into 8.4% of the Successor Company Common Stock (subject to dilution by the warrants issued under the Plan). On the Effective Date, the 2010 Notes and the Indenture were fully satisfied and discharged. Refer to Note 10 — Convertible Senior Notes for further information. · A fully backstopped Rights Offering for approximately 8.7% of the Successor Company Common Stock, in which holders of 2007 Credit Facility Claims were entitled to subscribe for up to 80% of the Successor Company Common Stock offered, and holders of the 2010 Notes Claims were entitled to subscribe for up to 20% of the Successor Company Common Stock being offered under the Rights Offering for an aggregate subscription price of $100,000. · The amendment and restatement of the $253 Million Term Loan Facility and the $100 Million Term Loan Facility as of the Effective Date, with extended maturities, a financial covenant holiday and certain other amendments, as discussed further in Note 9 — Debt. · The cancellation of the common stock of the Predecessor Company as of the Effective Date, with the holders thereof receiving warrants to acquire shares of the Successor Company Common Stock. Each of the Successor Company’s Equity Warrants is exercisable for one share of the Successor Company’s Common Stock, and holders received an aggregate of 3,938,298 of the Successor Company’s Equity Warrants for the common stock of the Predecessor Company. The Successor Company’s Equity Warrants in the aggregate are exercisable for approximately 6% of the Successor Company Common Stock (subject to dilution). · Reinstatement, non-impairment or payment in full in the ordinary course of business during the pendency of the Chapter 11 Cases of all Allowed General Unsecured Claims, including Allowed Claims of trade vendors, suppliers, customers and charterers, per the approval by the Bankruptcy Court. · The non-impairment of all other General Unsecured Claims under Section 1124 of the Bankruptcy Code. · The establishment of the Genco Shipping & Trading Limited 2014 Management Incentive Plan (the “MIP”), which provides for the distribution of the Successor Company’s MIP Primary Equity in the form of shares representing 1.8% of the Successor Company’s Common Stock and three tiers of the Successor Company’s MIP Warrants (“MIP Warrants”) with staggered strike prices based on increasing equity values to the participating officers, directors, and other management of the Successor Company. These awards were made on August 7, 2014. Refer to Note 23 — Stock-Based Compensation. Registration Rights Agreement On the Effective Date, the Successor Company and the Registration Rights Parties entered into the Registration Rights Agreement. The Registration Rights Agreement provided the Registration Rights Parties who receive 10% or more of the Successor Company’s Common Stock under the Plan with demand and piggyback registration rights. All other Registration Rights Parties have piggyback registration rights only. Reorganization Value The Plan as confirmed by the Bankruptcy Court estimated the distributable value of the Successor’s equity to be $1.23 billion (the “Distributable Value”). Various valuation methodologies were considered in the bankruptcy proceedings to estimate the Distributable Value. These methodologies included: · An asset-based methodology using net asset value, which incorporated (i) third-party appraisals of vessels, (ii) trading values for freely traded securities, (iii) book values for other balance sheet accounts and (iv) discounted cash flows for material contracts. · A precedent transactions methodology, which incorporated relevant transactions announced in the previous five years. · A comparable company methodology, which evaluated drybulk companies with similar operating profiles and adjusting to reflect differing characteristics like vessel ages. The comparable company methodology takes into account comparable companies’ (i) capital structure, (ii) trading values, (iii) asset values, and (iv) projected EBITDA. Projected EBITDA of each comparable company was determined by relying on equity research analyst projections. · A discounted cash flow methodology, which was premised on (i) the Company’s business plan, which incorporated leading industry consultant charter rate forecasts, (ii) a weighted average cost of capital of 10.1% and (iii) a terminal value based on the projected asset value of the fleet at the end of the four-year projection period. The Distributable Value of the Company ranged from $1.1 - $1.4 billion based upon consideration of these various methodologies. Ultimately, after this was challenged in the bankruptcy proceedings, the bankruptcy court approved a Distributable Value in the amount of $1.23 billion in conjunction with confirmation of the plan, which was within this range and based on the asset-based methodology described above. Management believed that the Distributable Value of $1.23 billion, which was derived using the asset based methodology described above and was approved by the bankruptcy court, provided the best representation of the Company’s post-emergence reorganization value as defined in ASC 852, “Reorganizations” (“ASC 852”). Such valuation assumptions are not a prediction or reflection of post-confirmation trading prices of the Debtors’ common stock. Such securities may trade at substantially lower or higher prices because of a number of factors. The trading prices of securities issued under a plan of reorganization are subject to many unforeseen circumstances and therefore cannot be predicted. The Company’s reorganization plan was based upon a distributable value of $1.23 billion which was agreed to by the prepetition lenders as part of a settlement embodied in the plan. Successor Company Equity Warrant Agreement On the Effective Date, pursuant to the Plan, the Successor Company’s Equity Warrants totaling 3,938,298 were issued pursuant to the terms of the Successor Company’s Equity Warrant Agreement (the “Equity Warrants”). Each of the Equity Warrants has a 7-year term (commencing on the day following the Effective Date) and are exercisable for one share of the Successor Company’s Common Stock. The Equity Warrants are exercisable on a cashless basis at an exercise price of $20.99 per share. The Successor Company’s Equity Warrant Agreement contains customary anti-dilution adjustments in the event of any stock split, reverse stock split, stock dividend, reclassification, dividend or other distributions (including, but not limited to, cash dividends), or business combination transaction. As of December 31, 2015, 3,936,761 Equity Warrants were not exercised. The Equity Warrants were distributed to holders of the common stock of the Predecessor Company, which was cancelled as of the Effective Date. Shares of common stock of the Predecessor Company issued to directors, officers and employees of Genco under compensatory plans that were unvested as of the Effective Date were deemed vested automatically on the Effective Date, so that all Equity Warrants received in exchange were therefore deemed vested. Refer to Note 23 — Stock-Based Compensation for further information. Financial Statement Presentation Upon the Company’s emergence from the Chapter 11 Cases on July 9, 2014, the Company adopted fresh-start reporting in accordance with provisions of ASC 852. Upon adoption of fresh-start reporting, the Company’s assets and liabilities were recorded at their value as of the fresh-start reporting date. The fair values of the Company’s assets and liabilities in conformance with ASC 805, “Business Combinations,” as of that date differed materially from the recorded values of its assets and liabilities as reflected in its historical consolidated financial statements. In addition, the Company’s adoption of fresh-start reporting may materially affect its results of operations following the fresh-start reporting dates, as the Company will have a new basis in its assets and liabilities. Consequently, the Company’s historical financial statements may not be reliable indicators of its financial condition and results of operations for any period after it adopted fresh-start reporting. As a result of the adoption of fresh-start reporting, the Company’s consolidated balance sheets and consolidated statements of operations subsequent to July 9, 2014 will not be comparable in many respects to our consolidated balance sheets and consolidated statements of operations prior to July 9, 2014. Under ASC 852 , fresh-start reporting is required upon emergence from Chapter 11 if (i) the value of the assets of the emerging entity immediately before the date of confirmation is less than the total of all post-petition liabilities and allowed claims; and (ii) holders of existing voting shares immediately before confirmation receive less than 50% of the voting shares of the emerging entity. Accordingly, the Company qualified for and adopted fresh-start reporting as of the Effective Date. Adopting fresh-start reporting results in a new reporting entity with no beginning retained earnings or deficit. The cancellation of all existing shares outstanding on the Effective Date and issuance of new shares of the reorganized entity caused a related change of control of the Company under ASC 852. The following fresh-start balance sheet illustrates the financial effects on the Company of the implementation of the Plan and the adoption of fresh-start reporting. This fresh-start balance sheet reflects the effect of the completion of the transactions included in the Plan, including the issuance of equity and the settlement of old indebtedness. See Note 25 for details associated with the restatement of the certain previously reported financial information associated with the accounting for these transactions. The effects of the Plan and fresh-start reporting on the Company’s consolidated balance sheet (as restated) are as follows: Fresh-Start Adjustments Predecessor July 9, 2014 Debt Discharge and Equity Issuance (a) (restated) Reinstatement of Liabilities (b) Revaluation of Assets and Liabilities (c) (restated) Successor July 9, 2014 Assets Current assets: Cash and cash equivalents $ $ $ — $ — $ Restricted cash — — — Due from charterers, net — — — Prepaid expenses and other current assets — — ) Time charters acquired — — — Total current assets — Noncurrent assets: Vessels, net — — ) Deposits on vessels — — Fresh-Start Adjustments Predecessor July 9, 2014 Debt Discharge and Equity Issuance (a) (restated) Reinstatement of Liabilities (b) Revaluation of Assets and Liabilities (c) (restated) Successor July 9, 2014 Deferred drydock, net — — ) Deferred financing costs, net ) — — Fixed assets, net — — ) Other noncurrent assets — — — Restricted cash — — — Investments — — — Goodwill — — — Total noncurrent assets ) — ) Total assets $ $ $ — $ ) $ Liabilities and Equity Current liabilities not subject to compromise: Accounts payable and accrued expenses $ $ ) $ $ — $ Current portion of long-term debt — — Deferred revenue — — — Time charters acquired — — ) — Total current liabilities not subject to compromise ) ) Noncurrent liabilities not subject to compromise: Long-term lease obligations — — ) — Long-term debt — — Total noncurrent liabilities not subject to compromises — ) Total liabilities subject to compromise ) ) — — Total liabilities ) — ) Equity: Genco Shipping & Trading Limited shareholders’ equity: Predecessor Common stock ) — — — Predecessor Additional paid-in capital ) — — — Successor Common stock — — — Successor Additional paid-in capital — — — Accumulated other comprehensive income ) — — — Retained (deficit) earnings ) — ) — Total Genco Shipping & Trading Limited shareholders’ equity — ) Noncontrolling interest — — ) Total equity — ) Total liabilities and equity $ $ $ — $ ) $ (a) Debt Discharge and Equity Issuance — this column reflects the following adjustments pursuant to the Plan: 1. Items comprising the net gain on settlement of liabilities subject to compromise in exchange for equity issuance — see Note 18. Predecessor Period from January 1 to July 9, 2014 Discharge of the outstanding debt under the 2007 Credit Facility $ Discharge of the long-term interest payable due pursuant to the 2007 Credit Facility Discharge of the 2010 Notes liability Discharge of coupon interest on the 2010 Notes liability The elimination of deferred financing fees associated with the discharged obligations ) The elimination of accumulated other comprehensive income related to interest rate swaps associated with the discharged obligations ) Issuance of Successor common stock ) Net gain on the discharge of Predecessor liabilities related to liabilities subject to compromise and associated issuance of Successor equity $ 2. Other items associated with the settlement of liabilities subject to compromise: · The payment of interest expense accrued up to the Effective Date of $1,772, $59 and $156 for the 2007 Credit Facility, the $100 Million Term Loan Facility and the $253 Million Term Loan Facility, respectively. · The paydown on the Effective Date of $1,923 and $5,075 for the $100 Million Term Loan Facility and $253 Million Term Loan Facility, respectively, which were due on the Effective Date as they were not paid during the pendency of the Chapter 11 Cases. · The payment of deferred financing fees of $3,490 for the Amended and Restated $100 Million and $253 Million Term Loan Facilities. 3. The reclassification to retained (deficit) earnings of $34,931 related to the gain associated with the Company’s investments. 4. The reclassification of $900 of initial equity to accounts payable that represents the estimated amount of the notes discharged that will be paid in cash to nonaccredited investors. 5. The reclassification to retained (deficit) earnings of the Predecessor common stock of $445 and Predecessor additional paid in capital of $849,130. 6. Receipt of the proceeds of the $100,000 rights offering pursuant to the Plan. (b) Reinstatement of Liabilities — this column reflects the reinstatement of the remaining Liabilities subject to compromise for the Predecessor Company which were not already adjusted in the Debt Discharge and Equity Issuance column. It includes the following adjustments: · The reclassification of the debt outstanding under the Amended and Restated $100 Million Term Loan Facility. This includes $7,692 of current long-term debt and $63,946 of long-term debt. · The reclassification of the debt outstanding under the Amended and Restated $253 Million Term Loan Facility. This includes $20,300 of current long-term debt and $150,343 of long-term debt. · The reinstatement of $5,622 related to the termination of the interest rate swap agreement with DNB Bank ASA. · The reinstatement of the $815 lease obligation. · The reinstatement of $41 of pre-petition accounts payable due to vendors in the United States. (c) Revaluation of Assets and Liabilities — Fresh-start reporting adjustments are made to reflect asset values at their estimated fair value, including: · Adjustment of $179 to prepaid amounts for the Predecessor Company. · Adjustment to reflect the fair value of time charters acquired of $434. · Adjustment of $1,083,404 to reflect the fair value of vessel assets, vessel deposits, drydocking assets and other fixed assets as of the Effective Date. The portion of the asset revaluation associated with Baltic Trading’s noncontrolling interest in the amount of $74,355 was reflected as a reduction of noncontrolling interest. · Adjustment of $2,670 to reflect the fair value of the Company’s current lease agreement, which was previously recorded as long-term lease obligations. As of the Effective Date, the lease agreement has been valued at below market; therefore, we have recorded in “Prepaid expenses and other current assets” an asset of $138, which will be amortized over the remaining life of the lease agreement. · Goodwill in the amount of $166,067 was recognized, which represents the portion of the total reorganization value that was not attributed to specific tangible or identifiable intangible assets. The portion of the goodwill recognized in relation to Baltic Trading noncontrolling interest in the amount of $24,022 was reflected as an increase in noncontrolling interest. A summary of the allocation of the reorganization value to the fair value of the Successor Company net assets, including goodwill, is as follows: Total Reorganization Value Value of shares issued to pre-petition claimants $ Proceeds of rights offering $ Estimated fair value of debt Current portion of long-term debt Long term debt Estimated fair value of non-debt liabilities Deferred revenue Accounts payable and accrued expenses Noncontrolling interest Reorganization value of assets Estimated fair value of assets (excluding goodwill) (a) ) Reorganization value of assets in excess of fair value — goodwill $ (a) Estimated fair value of assets (excluding goodwill) consists of: Total current assets $ Vessels, net Deposits on vessels Deferred drydock, net Deferred financing costs, net Fixed assets, net Other noncurrent assets Restricted cash Investments Total assets excluding goodwill $ · The total reduction of $53,367 in noncontrolling interest is due to the adjustment of the fair value of the noncontrolling interest derived from the Baltic Trading asset revaluation and goodwill described above and an additional revaluation adjustment of $3,034. The revalued noncontrolling interest was determined based on a relative fair value allocation of Baltic Trading Limited’s estimated equity value as July 8, 2014, which multiplied the percentage of Baltic Trading Limited’s equity ownership attributable to non-controlling interests by the estimated equity value of Baltic Trading Limited as of such date. The estimated equity value of Baltic Trading Limited as of such date was determined by multiplying the closing price of Baltic Trading Limited’s publicly traded common stock by the total number of shares of Baltic Trading Limited’s common stock and Class B stock outstanding on July 8, 2014. Other General Information Baltic Trading was a wholly-owned indirect subsidiary of GS&T until Baltic Trading completed its initial public offering, or |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of consolidation The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP which includes the accounts of GS&T, its wholly-owned subsidiaries, and its wholly-owned indirect subsidiary, Baltic Trading. All intercompany accounts and transactions have been eliminated in consolidation. Business geographics The Company’s vessels regularly move between countries in international waters, over hundreds of trade routes and, as a result, the disclosure of geographic information is impracticable. Vessel acquisitions When the Company enters into an acquisition transaction, it determines whether the acquisition transaction was the purchase of an asset or a business based on the facts and circumstances of the transaction. As is customary in the shipping industry, the purchase of a vessel is normally treated as a purchase of an asset as the historical operating data for the vessel is not reviewed nor is it material to the Company’s decision to make such acquisition. When a vessel is acquired with an existing time charter, the Company allocates the purchase price to the vessel and the time charter based on, among other things, vessel market valuations and the present value (using an interest rate which reflects the risks associated with the acquired charters) of the difference between (i) the contractual amounts to be paid pursuant to the charter terms and (ii) management’s estimate of the fair market charter rate, measured over a period equal to the remaining term of the charter. The capitalized above-market (assets) and below-market (liabilities) charters are amortized as a reduction or increase, respectively, to revenues over the remaining term of the charter. Segment reporting The Company reports financial information and evaluates its operation by voyage revenues and not by the length of ship employment for its customers, i.e., spot or time charters. Each of the Company’s vessels serve the same type of customer, have similar operation and maintenance requirements, operate in the same regulatory environment, and are subject to similar economic characteristics. Based on this, the Company has determined that after the effective date of the Merger on July 17, 2015, it operates in one reportable segment which is engaged in the ocean transportation of drybulk cargoes worldwide through the ownership and operation of drybulk carrier vessels. Prior to the Merger, the Company had two reportable operating segments, GS&T and Baltic Trading. Revenue and voyage expense recognition Since the Company’s inception, revenues have been generated from time charter agreements, pool agreements and spot market-related time charters. A time charter involves placing a vessel at the charterer’s disposal for a set period of time during which the charterer may use the vessel in return for the payment by the charterer of a specified daily hire rate, including any ballast bonus payments received pursuant to the time charter agreement. Spot market-related time charters are the same as other time charter agreements, except the time charter rates are variable and are based on a percentage of the average daily rates as published by the Baltic Dry Index (“BDI”). Voyage revenues also include the sale of bunkers consumed during short-term time charters pursuant to the terms of the time charter agreement. In time charters, spot market-related time charters and pool agreements, operating costs including crews, maintenance and insurance are typically paid by the owner of the vessel and specified voyage costs such as fuel and port charges are paid by the charterer. There are certain other non-specified voyage expenses, such as commissions, which are typically borne by the Company. At the inception of a time charter, the Company records the difference between the cost of bunker fuel delivered by the terminating charterer and the bunker fuel sold to the new charterer as a gain or loss within voyage expenses. Additionally, the Company records lower of cost or market adjustments to re-value the bunker fuel on a quarterly basis. These differences in bunkers, including lower of cost or market adjustments, resulted in a net loss of $8,927 and $1,616 during the year ended December 31, 2015 and the period from July 9 to December 31, 2014, respectively, for the Successor Company. During the period from January 1 to July 9, 2014 and during the year ended December 31, 2013, the Predecessor Company recorded a net gain of $252 and $567, respectively. Additionally, voyage expenses include the cost of bunkers consumed during short-term time charters pursuant to the terms of the time charter agreement. The Company records time charter revenues over the term of the charter as service is provided. Revenues are recognized on a straight-line basis as the average revenue over the term of the respective time charter agreement. The Company records spot market-related time charter revenues over the term of the charter as service is provided based on the rate determined based on the BDI for each respective billing period. As such, the revenue earned by the Company’s vessels that are on spot market-related time charters is subject to fluctuations of the spot market. The Company recognizes voyage expenses when incurred. Four of the Company’s vessels, the Genco Ocean, Genco Bay, Genco Avra and Genco Spirit, were chartered under spot market-related time charters which include a profit-sharing element. The time charters for the Genco Ocean and Genco Bay ended during August 2013 and March 2013, respectively. The time charters for the Genco Avra and Genco Spirit ended during March 2014 and November 2014, respectively. Under these charter agreements, the rate for the spot market-related time charter was linked with a floor of $9 and a ceiling of $14 daily with a 50% profit sharing arrangement to apply to any amount above the ceiling. The rate was based on 115% of the average of the daily rates reflected in the daily reports of the Baltic Handysize Index. At December 31, 2015 and 2014, 19 and 13 of the Company’s vessels were in vessel pools, respectively. At December 31, 2015 and 2014, the Company had 14 and seven vessels, respectively, operating in the Clipper Logger Pool and the Clipper Sapphire Pool, vessel pools trading in the spot market for which Clipper Group acts as the pool manager. Additionally, at December 31, 2015 and 2014, the Company had four and five vessels, respectively, operating in the Bulkhandling Handymax A/S Pool, a vessel pool trading in the spot market for which Torvald Klaveness acts as pool manager. Lastly, as of December 31, 2015 and 2014, the Company had one vessel operating in the Navig8 Bulk Pool, a vessel pool trading in the spot market for which Navig8 Inc. acts as the pool manager. Under pool arrangements, the vessels operate under a time charter agreement whereby the cost of bunkers and port expenses are borne by the pool and operating costs including crews, maintenance and insurance are typically paid by the owner of the vessel. Since the members of the pool share in the revenue less voyage expenses generated by the entire group of vessels in the pool, and the pool operates in the spot market, the revenue earned by these vessels is subject to the fluctuations of the spot market. The Company recognizes revenue from these pool arrangements based on its portion of the net distributions reported by the relevant pool, which represents the net voyage revenue of the pool after voyage expenses and pool manager fees. Other operating income During the year ended December 31, 2015 and the period from July 9 to December 31, 2014, the Successor Company recorded other operating income of $0 and $530, respectively. During the period from January 1 to July 9, 2014 and during the year ended December 31, 2013, the Predecessor Company recorded other operating income of $0 and $121, respectively. Other operating income recorded by the Successor Company during the period from July 9 to December 31, 2014 consists of $530 related to installments due from Samsun Logix Corporation (“Samsun”) pursuant to the rehabilitation plan which was approved by the South Korean courts. Other operating income recorded by the Predecessor Company during the year ended December 31, 2013 included $21 related to the settlement due from Korea Line Corporation (“KLC”) pursuant to the rehabilitation plan which was approved by the South Korean courts. Lastly, other operating income during the year ended December 31, 2013 also included $100 related to the receipt of 3,355 shares of stock of KLC as part of the aforementioned rehabilitation plan. This investment has been designated as Available for Sale (“AFS”). Refer to Note 21 — Commitments and Contingencies for further information regarding the bankruptcy settlements with Samsun and KLC and Note 6 — Investments for further information regarding the investment in KLC shares. Due from charterers, net Due from charterers, net includes accounts receivable from charters, net of the provision for doubtful accounts. At each balance sheet date, the Company records the provision based on a review of all outstanding charter receivables. Included in the standard time charter contracts with the Company’s customers are certain performance parameters which, if not met, can result in customer claims. As of December 31, 2015 and 2014, the Company had a reserve of $429 and $1,588, respectively, against the due from charterers balance and an additional accrual of $498 and $662, respectively, in deferred revenue, each of which is primarily associated with estimated customer claims against the Company including vessel performance issues under time charter agreements. Revenue is based on contracted charterparties. However, there is always the possibility of dispute over terms and payment of hires and freights. In particular, disagreements may arise concerning the responsibility of lost time and revenue. Accordingly, the Company periodically assesses the recoverability of amounts outstanding and estimates a provision if there is a possibility of non-recoverability. The Company believes its provisions to be reasonable based on information available. Inventories Inventories consist of consumable bunkers, lubricants and victualling stores, which are stated at the lower of cost or market value and are recorded in Prepaid expenses and other current assets. Cost is determined by the first in, first out method. Vessel operating expenses Vessel operating expenses include crew wages and related costs, the cost of insurance, expenses relating to repairs and maintenance, the cost of spares and consumable stores, and other miscellaneous expenses. Vessel operating expenses are recognized when incurred. Vessels, net Vessels, net is stated at cost less accumulated depreciation. Included in vessel costs are acquisition costs directly attributable to the acquisition of a vessel and expenditures made to prepare the vessel for its initial voyage. The Company also capitalizes interest costs for a vessel under construction as a cost that is directly attributable to the acquisition of a vessel. Vessels are depreciated on a straight-line basis over their estimated useful lives, determined to be 25 years from the date of initial delivery from the shipyard. Depreciation expense for vessels for the Successor Company for the year ended December 31, 2015 and the period from July 9 to December 31, 2014 was $76,395 and $36,265, respectively. Depreciation expense for vessels for the Predecessor Company for the period from January 1 to July 9, 2014 and for the year ended December 31, 2013 was $71,756 and $133,562, respectively. Depreciation expense is calculated based on cost less the estimated residual scrap value. The costs of significant replacements, renewals and betterments are capitalized and depreciated over the shorter of the vessel’s remaining estimated useful life or the estimated life of the renewal or betterment. Undepreciated cost of any asset component being replaced that was acquired after the initial vessel purchase is written off as a component of vessel operating expense. Expenditures for routine maintenance and repairs are expensed as incurred. Scrap value is estimated by the Company by taking the cost of steel times the weight of the ship noted in lightweight tons (lwt). Effective July 9, 2014, on the Effective Date, the Company increased the estimated scrap value of the vessels from $245 per lwt to $310 per lwt prospectively based on the 15-year average scrap value of steel. During the year ended December 31, 2015 and the period from July 9 to December 31, 2014, the increase in the estimated scrap value resulted in a decrease in depreciation expense of $3,193 and $1,540, respectively, for the Successor Company. The decrease in depreciation expense does not take into effect the revaluation of the vessel assets due to fresh-start reporting. Fixed assets, net Fixed assets, net are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are based on a straight line basis over the estimated useful life of the specific asset placed in service. The following table is used in determining the typical estimated useful lives: Description Useful lives Leasehold improvements Lesser of the estimated useful life of the asset or life of the lease Furniture, fixtures & other equipment 5 years Vessel equipment 2-15 years Computer equipment 3 years Depreciation and amortization expense for fixed assets for the year ended December 31, 2015 and the period from July 9 to December 31, 2014 for the Successor Company was $284 and $119, respectively. Depreciation and amortization expense for fixed assets for the period from January 1 to July 9, 2014 and for the year ended December 31, 2013 for the Predecessor Company was $458 and $1,481, respectively. Deferred drydocking costs The Company’s vessels are required to be drydocked approximately every 30 to 60 months for major repairs and maintenance that cannot be performed while the vessels are operating. The Company defers the costs associated with the drydockings as they occur and amortizes these costs on a straight-line basis over the period between drydockings. Costs deferred as part of a vessel’s drydocking include actual costs incurred at the drydocking yard; cost of travel, lodging and subsistence of personnel sent to the drydocking site to supervise; and the cost of hiring a third party to oversee the drydocking. If the vessel is drydocked earlier than originally anticipated, any remaining deferred drydock costs that have not been amortized are expensed at the end of the next drydock. Amortization expense for drydocking for the year ended December 31, 2015 and the period from July 9 to December 31, 2014 for the Successor Company was $2,877 and $330, respectively. Amortization expense for drydocking for the period from January 1 to July 9, 2014 and for the year ended December 31, 2013 for the Predecessor Company was $3,738 and $5,700, respectively. All other costs incurred during drydocking are expensed as incurred. Goodwill The Company follows the provisions of ASC Subtopic 350-20, “Intangibles - Goodwill and Other” (“ASC 350-20”). This statement requires that goodwill and intangible assets with indefinite lives be tested for impairment at least annually or when there is a triggering event and written down with a charge to operations when the carrying amount of the reporting unit that includes goodwill exceeds the estimated fair value of the reporting unit. If the carrying value of the goodwill exceeds the reporting unit’s implied goodwill, such excess must be written off. The Company recorded Goodwill of $166,067 upon adoption of fresh-start reporting in accordance with provisions of ASC 852 as of the Effective Date. Pursuant to the Company’s annual goodwill impairment testing performed as of December 31, 2014, it was determined that the entire amount of this goodwill was impaired. Refer to Note 4 — Goodwill Impairment. Impairment of long-lived assets During the year ended December 31, 2015 and the period from July 9 to December 31, 2014, the Successor Company recorded $39,893 and $0, respectively, related to the impairment of vessel assets in accordance with ASC 360 — “Property, Plant and Equipment” (“ASC 360”). For the period from January 1 to July 9, 2014 and the year ended December 31, 2013, there were no impairment charges recorded by the Company. ASC 360 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts. If indicators of impairment are present, the Company performs an analysis of the anticipated undiscounted future net cash flows to be derived from the related long-lived assets. At December 31, 2015, the Company determined that the future undiscounted cash flows did not exceed the net book value for the Genco Marine. As such, a $4,497 impairment loss was recorded in order to adjust the value of the Genco Marine to its fair market value as of December 31, 2015. Additionally, at March 31, 2015, the Company determined that the sale of the Baltic Lion and Baltic Tiger was more likely than not based on Baltic Trading’s expressed consideration to divest of those vessels. Therefore, the time utilized to determine the recoverability of the carrying value of the vessel assets was significantly reduced, and after determining that the sum of the estimated undiscounted future cash flows attributable to the Baltic Lion and Baltic Tiger would not exceed the carrying value of the respective vessels, the Company reduced the carrying value of each vessel to its estimated fair value, which was determined primarily based on appraisals and third party broker quotes. This resulted in an impairment loss of $35,396. On April 8, 2015, the Baltic Lion and Baltic Tiger entities were sold to GS&T. Refer to Note 1 —General Information for details pertaining to the sale of these entities. As part of fresh-start reporting, the Company revalued its vessel assets at their fair values as of the Effective Date and the losses were recorded in Reorganization items, net in the Consolidated Statements of Operations. Loss on disposal of vessels During the year ended December 31, 2015, the Successor Company recorded $1,210 related to the loss on sale of vessels related to the sale of the Baltic Lion and Baltic Tiger entities to GS&T from Baltic Trading on April 8, 2015. Deferred financing costs Deferred financing costs, included in other assets, consist of fees, commissions and legal expenses associated with securing loan facilities and other debt offerings and amending existing loan facilities. These costs are amortized over the life of the related debt and are included in Interest expense. Cash and cash equivalents The Company considers highly liquid investments such as money market funds and certificates of deposit with an original maturity of three months or less to be cash equivalents. Investments The Company holds an investment in the capital stock of Jinhui Shipping and Transportation Limited (“Jinhui”) and in KLC. Jinhui is a drybulk shipping owner and operator focused on the Supramax segment of drybulk shipping. KLC is a marine transportation service company which operates a fleet of carriers which includes carriers for iron ore, liquefied natural gas and tankers for oil and petroleum products. The investments in Jinhui and KLC have been designated as AFS and are reported at fair value, with unrealized gains and losses recorded in equity as a component of accumulated other comprehensive income (loss) (“AOCI”). The Company classifies the investments as current or noncurrent assets based on the Company’s intent to hold the investments at each reporting date. Investments are reviewed quarterly to identify possible other-than-temporary impairment in accordance with ASC Subtopic 320-10, “Investments — Debt and Equity Securities” (“ASC 320-10”). When evaluating its investments, the Company reviews factors such as the length of time and extent to which fair value has been below the cost basis, the financial condition of the issuer, the underlying net asset value of the issuers assets and liabilities, and the Company’s ability and intent to hold the investment for a period of time which may be sufficient for anticipated recovery in market value. Should the decline in the value of any investment be deemed to be other-than-temporary, the investment basis would be written down to fair market value, and the write-down would be recorded to earnings as a loss. Refer to Note 6 — Investments. Income taxes Pursuant to Section 883 of the U.S. Internal Revenue Code of 1986 (as amended) (the “Code”), qualified income derived from the international operations of ships is excluded from gross income and exempt from U.S. federal income tax if a company engaged in the international operation of ships meets certain requirements (the “Section 883 exemption”). Among other things, in order to qualify, the Company must be incorporated in a country that grants an equivalent exemption to U.S. corporations and must satisfy certain qualified ownership requirements. GS&T is incorporated in the Marshall Islands. Pursuant to the income tax laws of the Marshall Islands, GS&T is not subject to Marshall Islands income tax. The Marshall Islands has been officially recognized by the Internal Revenue Service as a qualified foreign country that currently grants the requisite equivalent exemption from tax. GS&T is not taxable in any other jurisdiction, with the exception of Genco Management (USA) Limited, as noted below. GS&T will qualify for the Section 883 exemption if, among other things, (i) GS&T stock is treated as primarily and regularly traded on an established securities market in the United States (the “publicly traded test”), (ii) GS&T satisfies the qualified shareholder test or the controlled foreign corporation test. Under applicable Treasury Regulations, the publicly-traded test cannot be satisfied in any taxable year in which persons who actually or constructively own 5% or more of GS&T’s stock (“5% shareholders”), together own 50% or more of GS&T’s stock (by vote or value) for more than half the days in such year (the “five percent override rule”), unless an exception applies. A foreign corporation satisfies the qualified shareholder test if more than 50% of the value of its outstanding shares is owned (or treated as owned by applying certain attribution rules) for at least half of the number of days in the foreign corporation’s taxable year by one or more “qualified shareholders.” A qualified shareholder includes a foreign corporation that is organized in a qualified foreign country and meets the publicly traded test. Based on the publicly traded requirement of the Section 883 regulations, GS&T believes that it qualified for exemption from income tax on income derived from the international operations of ships during the years ended December 31, 2015, 2014 and 2013. In order to meet the publicly traded requirement, GS&T’s stock must be treated as being primarily and regularly traded for more than half the days of any such year. Under the Section 883 regulations, GS&T’s qualification for the publicly traded requirement may be jeopardized if shareholders of the Company’s common stock that own five percent or more of the Company’s stock (“5% shareholders”) own, in the aggregate, 50% or more of the Company’s common stock for more than half the days of the year. Management believes that during the years ended December 31, 2015, 2014 and 2013, the combined ownership of its 5% shareholders did not equal 50% or more of its common stock for more than half the days of each of those respective years, as applicable. If GS&T does not qualify for the Section 883 exemption, GS&T’s U.S. source shipping income, i.e., 50% of its gross shipping income attributable to transportation beginning or ending in the U.S. (but not both beginning and ending in the U.S.) would be subject to a 4% tax without allowance for deductions (the “U.S. gross transportation tax”). Prior to the Merger, Baltic Trading was also incorporated in the Marshall Islands and its stock is primarily traded on an established securities market in the U.S. However, GS&T indirectly owned shares of Baltic Trading’s Class B Stock which provided GS&T with over 50% of the combined voting power of all classes of Baltic Trading’s voting stock since Baltic Trading’s IPO was completed on March 15, 2010 until the Merger with Baltic Trading on July 17, 2015 (pursuant to which GS&T exchanged its shares for Baltic Trading’s outstanding common stock) . As a result, Baltic Trading’s Class B Stock has not been treated as regularly traded (a corporation’s stock is not regularly traded if, amongst other things, 50% or more of its stock (by vote or value) is not listed on one or more established securities markets) and Baltic Trading will not satisfy the publicly traded test in 2015 (and cannot satisfy the qualified shareholder test or the controlled foreign corporation test in 2015). Thus, Baltic Trading did not qualify for a Section 883 exemption in 2015. As such, Baltic Trading was subject to U.S. gross transportation income tax on its U.S. source shipping income. As a result of the Merger, Baltic Trading should qualify for the Section 883 exemption under the qualified shareholder test in 2016 and future taxable years as long as GS&T qualifies for the Section 883 exemption by satisfying the publicly-traded test in such years. During the year ended December 31, 2015 and the period from July 9 to December 31, 2014, Baltic Trading had U.S. source shipping income of $1,706 and $450, respectively. Baltic Trading’s estimated U.S. gross transportation income tax expense for the year ended December 31, 2015 and the period from July 9 to December 31, 2014 was $68 and $18, respectively. During the period from January 1 to July 9, 2014 and during the year ended December 31, 2013, Baltic Trading had U.S. source shipping income of $965 and $832, respectively. Baltic Trading’s U.S. gross transportation income tax expense for the period from January 1 to July 9, 2014 and for the year ended December 31, 2013 was $39 and $34, respectively. In addition to GS&T’s shipping income and pursuant to certain agreements, GS&T technically and commercially managed vessels for Baltic Trading until the Merger, as well as provides technical management of vessels for MEP in exchange for specified fees for these services provided. These services are performed by Genco Management (USA) Limited (“Genco (USA)”), which has elected to be taxed as a corporation for United States federal income tax purposes. As such, Genco (USA) is subject to Untied States federal income tax (currently imposed at graduated rates of up to 35%) on its worldwide net income, including the net income derived from providing these services. Genco (USA) has entered into a cost-sharing agreement with the Company and Genco Ship Management LLC, collectively “Manco,” pursuant to which Genco (USA) agrees to reimburse Manco for the costs incurred by Genco (USA) for the use of Manco’s personnel and services in connection with the provision of management services for both Baltic Trading and MEP’s vessels. Total revenue earned by the Successor Company for these services during the year ended December 31, 2015 and the period from July 9 to December 31, 2014 was $6,410 and $3,893, respectively, of which $3,235 and $2,309, respectively, eliminated upon consolidation. After allocation of certain expenses, there was taxable net income of $3,880 associated with these activities for the year ended December 31, 2015. This resulted in estimated U.S. federal net income tax expense of $1,753 for the year ended December 31, 2015. After allocation of certain expenses, there was taxable net income of $2,178 associated with these activities for the period from July 9 to December 31, 2014. This resulted in estimated U.S. federal net income tax expense of $978 for the period from July 9 to December 31, 2014. Total revenue earned by the Predecessor Company for these services during the period from January 1 to July 9, 2014 and during the year ended December 31, 2013 was $3,857 and $7,856, respectively, of which $2,156 and $4,571, respectively, was eliminated upon consolidation. After allocation of certain expenses, there was taxable net income of $1,723 associated with these activities for the period from January 1 to July 9, 2014. This resulted in estimated U.S. federal net income tax expense of $776 for the period from January 1 to July 9, 2014. After allocation of certain expenses, there was taxable net income of $4,235 associated with these activities for the year ended December 31, 2013. This resulted in estimated U.S. federal net income tax expense of $1,864 for the year ended December 31, 2013. Deferred revenue Deferred revenue primarily relates to cash received from charterers prior to it being earned. These amounts are recognized as income when earned. Additionally, deferred revenue includes estimated customer claims mainly due to time charter performance issues. Refer to “Revenue and voyage expense recognition” above for description of the Company’s revenue recognition policy. Comprehensive income The Company follows ASC Subtopic 220-10, “Comprehensive Income” (“ASC 220-10”), which establishes standards for reporting and displaying comprehensive income and its components in financial statements. Comprehensive income is comprised of net income and amounts related to unrealized gains or losses associated with the Company’s AFS investments, as well as the Company’s interest rate swaps accounted for as hedges prior to their termination as part of the Chapter 11 Cases. Nonvested stock awards The Company follows ASC Subtopic 718-10, “Compensation — Stock Compensation” (“ASC 718-10”), for nonvested stock issued under its equity incentive plans. Stock-based compensation costs from nonvested stock have been classified as a component of additional paid-in capital. Accounting estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include vessel valuations, the valuation of amounts due from charterers, performance claims, residual value of vessels, useful life of vessels and the fair value of derivative instruments. Actual results could differ from those estimates. Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk are amounts due from charterers, cash and cash equivalents, deposits on vessels and interest rate swap agreements. With respect to amounts due from charterers, the Company attempts to limit its credit risk by performing ongoing credit evaluations and, when deemed necessary, requires letters of credit, guarantees or collateral. The Successor Company earned 100% of voyage revenues from 52 and 44 customers during the year ended December 31, 2015 and during the period from July 9 to December 31, 2014. The Predecessor Company earned 100% of voyage revenues from 33 and 48 customers during the period from January 1 to July 9, 2014 and during the year ended December 31, 2013. Management does not believe significant risk exists in connection with the Company’s concentrations of credit at December 31, 2015 and 2014. For the year ended December 31, 2015 for the Successor Company, there were three customers that individually accounted for more than 10% of voyage revenues; Swissmarine Services S.A., including its subsidiaries (“Swissmarine”), Clipper Group, including Clipper Bulk Shipping, the Clipper Logger Pool and the Clipper Sapphire Pool (“Clipper”), and Pioneer Navigation Ltd., which represented 24.37%, 19.09% and 13.03% of voyage revenues, respectively. For the period from July 9 to December 31, 2014 for the Successor Company, there were two customers that individually accounted for more than 10% of voyage revenues; Cargill International S.A., including its subsidiaries (“Cargill”) and Swissmarine, which represented 17.06% and 22.52% of voyage revenues, respectively. For the period from January 1 to July 9, 2014 for the Predecessor Company, there were two customers that individually |
CASH FLOW INFORMATION
CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2015 | |
CASH FLOW INFORMATION | |
CASH FLOW INFORMATION | 3 - CASH FLOW INFORMATION For the year ended December 31, 2015, the Successor Company had non-cash investing activities not included in the Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expenses consisting of $236 for the Purchase of vessels, including deposits and $121 for the Purchase of other fixed assets. Additionally, for the year ended December 31, 2015, the Successor Company had non-cash financing activities not included in the Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expenses consisting of $101 associated with the Cash settlement of non-accredited Note holders. During the year ended December 31, 2015, the Successor Company increased the amount of non-accredited holders of the Convertible Senior Notes, which were discharged on the Effective Date, which will be settled in cash versus settled with common shares. Lastly, for the year ended December 31, 2015, the Successor Company had non-cash investing activities not included in the Consolidated Statement of Cash Flows for items included in Prepaid expenses and other current assets consisting of ($14) associated with the Purchase of vessels, including deposits and $148 associated with the Sale of AFS Securities. Professional fees and trustee fees in the amount of $1,085 were recognized by the Successor Company in Reorganization items, net for the year ended December 31, 2015 (refer to Note 20). During this period, $1,351 of professional fees and trustee fees were paid through December 31, 2015 and $48 is included in Accounts payable and accrued expenses as of December 31, 2015. For the period from July 9 to December 31, 2014, the Successor Company had non-cash investing activities not included in the Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expenses consisting of $464 for the Purchase of vessels, including deposits and $22 for the Purchase of other fixed assets. Additionally, for the period from July 9 to December 31, 2014, the Successor Company had non-cash financing activities not included in the Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expenses consisting of $2,190 associated with the Payment of deferred financing fees. Lastly, for the period from July 9 to December 31, 2014, the Successor Company had non-cash investing activities not included in the Consolidated Statement of Cash Flows for items included in Prepaid expenses and other current assets consisting of $7 associated with the Purchase of vessels, including deposits. Professional fees and trustee fees in the amount of $1,591 were recognized by the Successor Company in Reorganization items, net for the period from July 9 to December 31, 2014 (refer to Note 20). During this period, $32,794 of professional fees and trustee fees were paid through December 31, 2014 and $313 is included in Accounts payable and accrued expenses as of December 31, 2014. For the period from January 1 to July 9, 2014, the Predecessor Company had non-cash investing activities not included in the Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expenses consisting of $53 for the Purchase of vessels, including deposits and $20 for the Purchase of other fixed assets. Additionally, for the period from January 1 to July 9, 2014, the Predecessor Company had non-cash financing activities not included in the Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expenses consisting of $456 associated with the Payment of deferred financing fees. Of the $35,232 of professional fees and trustee fees recognized in Reorganization items, net for the period from January 1 to July 9, 2014 by the Predecessor Company (refer to Note 20), $2,703 was paid through July 9, 2014 and $32,529 is included in Accounts payable and accrued expenses as of July 9, 2014. For the year ended December 31, 2013, the Predecessor Company had non-cash investing activities not included in the Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expenses consisting of $618 for the Purchase of vessels, including deposits and $122 for the Purchase of other fixed assets. For the year ended December 31, 2013, the Predecessor Company had non-cash financing activities not included in the Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expenses consisting of $78 associated with the Payment of deferred financing fees and $111 for the Payment of common stock issuance costs by its subsidiary. Additionally, for the year ended December 31, 2013, the Predecessor Company had non-cash financing activities not included in the Consolidated Statement of Cash Flows for items included in Current interest payable consisting of $13,199 associated with the Payment of deferred financing fees. During the year ended December 31, 2015, the Successor Company made a reclassification of $25,593 from Deposits on vessels to Vessels, net of accumulated depreciation, due to the completion of the purchase of the Baltic Wasp, Baltic Scorpion and Baltic Mantis. Additionally, during the period from July 9 to December 31, 2014, the Successor Company made a reclassification of $9,140 from deposits on vessels to vessels, net of accumulated depreciation, due to the completion of the purchase of Baltic Hornet. No such reclassifications were made by the Predecessor Company during the period from January 1 to July 9, 2014 or during the year ended December 31, 2013. During the period from January 1 to July 9, 2014, the Predecessor Company made a reclassification of $984 from Fixed assets to Vessels, net of accumulated depreciation, for items that should be capitalized and depreciated over the remaining life of the respective vessels. During the year ended December 31, 2015 and the period from July 9 to December 31, 2014, cash paid for interest by the Successor Company, net of amounts capitalized, was $16,548 and $5,483, respectively. During the period from January 1 to July 9, 2014 and the year ended December 31, 2013, cash paid for interest by the Predecessor Company, net of amounts capitalized and including bond coupon interest paid, was $40,209 and $75,133, respectively. During the year ended December 31, 2015 and the period from July 9 to December 31, 2014, cash paid by the Successor Company for estimated income taxes was $2,085 and $750, respectively. During the period from January 1 to July 9, 2014 and during the year ended December 31, 2013, cash paid by the Predecessor Company for estimated income taxes was $1,495 and $1,275, respectively. On July 13, 2015 and July 29, 2015, the Successor Company issued 16,188 and 58,215 restricted stock units, respectively, to certain members of the Board of Directors. The aggregate fair value of these restricted stock units was $113 and $416, respectively, and 16,188 shares vested on July 17, 2015. Refer to Note 23 — Stock-Based Compensation for further details. On August 7, 2014, the Successor Company made grants of nonvested common stock pursuant to the MIP as approved by the Plan in the amount of 1,110,600 shares to the participating officers, directors and other management of the Successor Company. The aggregate fair value of such nonvested stock was $22,212. Additionally, on August 7, 2014, the Successor Company issued 8,557,461 MIP Warrants to the participating officers, directors and other management of the Successor Company. The aggregate fair value of these awards upon emergence from bankruptcy was $54,436. On May 16, 2013, the Predecessor Company made grants of nonvested common stock in the amount of 200,634 shares in the aggregate to directors of the Predecessor Company. The grant date fair value of such nonvested stock was $315. On May 17, 2012, November 7, 2012 and December 13, 2012, the Predecessor Company made grants of nonvested common stock in the amount of 15,000, 2,500 and 52,500 shares, respectively, to directors of the Predecessor Company. The grant date fair value of such nonvested stock was $53, $7 and $141, respectively. These shares vested on May 16, 2013. On December 13, 2012, the Board of Directors of the Predecessor Company approved a grant of 100,000 shares of nonvested common stock to Peter C. Georgiopoulos, Chairman of the Board, which had a grant date fair value of $268. Lastly, on December 13, 2012, the Predecessor Company granted 294,175 shares of nonvested stock to certain employees. The grant date fair value of such nonvested stock was $788. These nonvested shares were cancelled on the Effective Date and the holder received warrants to acquire shares of New Genco Common Stock. Refer to Note 1 - General Information for information regarding the Chapter 11 Cases. On April 9, 2014, Baltic Trading made grants of nonvested common stock in the amount of 36,345 shares to directors of Baltic Trading. The aggregate fair value of such nonvested stock was $225. Additionally, on December 18, 2014, 700,000 and 350,000 shares of Baltic Trading’s nonvested common stock were granted to Peter C. Georgiopoulos, Chairman of the Board of Baltic Trading, and John Wobensmith, Baltic Trading’s President and Chief Financial Officer, respectively. The grant date fair value of such nonvested stock was $2,615. On May 16, 2013, Baltic Trading made grants of nonvested common stock in the amount of 59,680 shares to directors of Baltic Trading. The grant date fair value of such nonvested stock was $225. These shares vested on April 9, 2014. Additionally, on December 19, 2013, 539,000 and 400,000 shares of Baltic Trading’s nonvested common stock were granted to Peter C. Georgiopoulos and John Wobensmith, respectively. The grant date fair value of such nonvested stock was $5,371. On July 17, 2015, the date of Baltic Trading’s 2015 Annual Meeting of Shareholders, the aforementioned Baltic Trading shares vested automatically and received the same consideration in the Merger as holders of Baltic Trading’s common stock. Refer to Note 1 — General Information for further information. |
GOODWILL IMPAIRMENT
GOODWILL IMPAIRMENT | 12 Months Ended |
Dec. 31, 2015 | |
GOODWILL IMPAIRMENT | |
GOODWILL IMPAIRMENT | 4 — GOODWILL IMPAIRMENT ASC 350-20 bases the accounting for goodwill on the reporting units of the combined entity. Prior to the Merger with Baltic Trading on July 17, 2015, the Company had two reporting units as defined by criteria in ASC 350-20, GS&T and Baltic Trading. The Company recorded Goodwill of $166,067 in adopting fresh-start reporting in accordance with provisions of ASC 852 as of the Effective Date, which was allocated to its two reporting units based on their relative fair values as of that date. ASC 350-20 provides guidance for impairment testing of goodwill, which is not amortized. Goodwill is tested annually for impairment or more frequently if events or changes in circumstances indicate that its carrying amount may not be recoverable, using a two-step process that begins with an estimation of the fair value of the Company’s reporting units. The first step is a screen for potential impairment and the second step measures the amount of impairment, if any. The first step involves a comparison of the estimated fair value of a reporting unit with its carrying amount. If the estimated fair value of the reporting unit exceeds its carrying value, goodwill of the reporting unit is considered unimpaired. Conversely, if the carrying amount of the reporting unit exceeds its estimated fair value, the second step is performed to measure the amount of impairment, if any. The second step of the goodwill impairment test compares the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. The implied fair value of goodwill is determined by allocating the estimated fair value of the reporting unit to the estimated fair value of its existing assets and liabilities in a manner similar to a purchase price allocation. The unallocated portion of the estimated fair value of the reporting unit is the implied fair value of goodwill. If the implied fair value of goodwill is less than the carrying amount, an impairment loss, equivalent to the difference, is recorded as a reduction of goodwill and a charge to operating expense. In the Company’s annual test of goodwill for impairment on December 31, 2014, the Company estimated the fair value of the reporting units to which its goodwill had been allocated. For this purpose the Company used the trailing 10-year industry average rates for each vessel class, over the remaining useful life of each vessel, recognizing that the transportation drybulk products is cyclical in nature and is subject to wide fluctuation in rates, and management believes the use of a 10-year average is the best measure of future rates over the remaining useful life of the Company’s fleet. Also for this purpose, the Company uses a utilization rate based on the Company’s historic average. In addition, the Company expects to incur the following costs over the remaining useful lives of the vessels in the Company’s fleet: · Vessel operating costs based on historic and budgeted costs adjusted for inflation, · Drydocking costs based on historic costs adjusted for inflation, and · General and administrative costs adjusted for inflation. The more significant factors which could impact management’s assumptions regarding voyage revenues, drydocking costs and general and administrative expenses include, without limitation: (a) loss or reduction in business from the Company’s significant customers; (b) changes in demand; (c) material declines in rates in the tanker market; (d) changes in production of or demand for drybulk products, generally or in particular regions; (e) greater than anticipated levels of new building orders or lower than anticipated rates of scrapping; (f) changes in rules and regulations applicable to the drybulk industry, including, without limitation, legislation adopted by international organizations such as the International Maritime Organization and the European Union or by individual countries; (g) actions taken by regulatory authorities; and (h) increases in costs including without limitation: crew wages, insurance, provisions, repairs and maintenance. Step 1 of impairment testing as of December 31, 2014 consisted of determining and comparing the fair value of a reporting unit, calculated by weighting discounted expected future cash flows, the fair value of the vessels and other assets owned by the reporting unit and the fair value of the reporting units based on the public trading price of each reporting unit, to the carrying value of each reporting unit. Based on performance of this test, it was determined that the goodwill allocated to each reporting unit may be impaired. The Company then undertook the second step of the goodwill impairment test which involves the procedures discussed above. For purposes of determining the fair value of each reporting unit, the Company ascribed a weight of 75% to a valuation method based on the fair value of the reporting unit’s net assets; and 25% to the valuation method that utilized the public trading price of each reporting unit. There was no weight ascribed to a third valuation methodology considered by management, which was the discounted cash flow (“DCF”) valuation method due to the significant volatility in the drybulk rate market and the values derived by applying the DCF valuation method were not consistent with the other values derived in applying the other two valuation methodologies considered. As a result of this testing, management determined that all of the goodwill allocated to the two reporting units was impaired, which resulted in a write-off at December 31, 2014 of $166,067. This impairment is attributable to the progressive decline in vessel charter rates that occurred from the Effective Date to the Company’s annual goodwill impairment test date of December 31, 2014, which included significant declines during the fourth quarter of 2014, which affected both the reporting units’ vessel values and their publicly traded stock prices. Other than goodwill, the Company does not have any other intangible assets that are not amortized. |
VESSEL ACQUISITIONS
VESSEL ACQUISITIONS | 12 Months Ended |
Dec. 31, 2015 | |
VESSEL ACQUISITIONS | |
VESSEL ACQUISITIONS | 5 - VESSEL ACQUISITIONS On July 2, 2013, Baltic Trading entered into agreements to purchase two Handysize drybulk vessels from subsidiaries of Clipper Group for an aggregate purchase price of $41,000. The Baltic Hare, a 2009-built Handysize vessel, was delivered on September 5, 2013 and the Baltic Fox, a 2010-built Handysize vessel, was delivered on September 6, 2013. Baltic Trading financed the vessel purchases with proceeds from its May 28, 2013 common stock offering and borrowings under its $22 Million Term Loan Facility entered into on August 30, 2013. Refer to Note 9 — Debt below for further information regarding the $22 Million Term Loan Facility. On October 31, 2013, Baltic Trading entered into agreements to purchase two Capesize drybulk vessels from affiliates of SK Shipping Co. Ltd. for an aggregate purchase price of $103,000. The Baltic Lion, a 2012-built Capesize vessel, was delivered on December 27, 2013, and the Baltic Tiger, a 2011-built Capesize vessel, was delivered on November 26, 2013. Baltic Trading financed the vessel purchases with cash on hand and borrowings under its $44 Million Term Loan Facility entered into on December 3, 2013. Refer to Note 9 — Debt below for further information regarding the $44 Million Term Loan Facility. On November 13, 2013, Baltic Trading entered into agreements to purchase up to four 64,000 dwt Ultramax newbuilding drybulk vessels from Yangfan Group Co., Ltd. for a purchase price of $28,000 per vessel, or up to $112,000 in the aggregate. Baltic Trading agreed to purchase two such vessels, which have been renamed the Baltic Hornet and Baltic Wasp, and obtained an option to purchase up to two additional such vessels for the same purchase price, which Baltic Trading exercised on January 8, 2014. These vessels were renamed the Baltic Mantis and the Baltic Scorpion. The first of these vessels, the Baltic Hornet, was delivered to Baltic Trading on October 29, 2014. The Baltic Wasp was delivered to Baltic Trading on January 2, 2015. The Baltic Scorpion and the Baltic Mantis were delivered to the Company on August 6, 2015 and October 9, 2015, respectively. As of December 31, 2015 and December 31, 2014, deposits on vessels were $0 and $25,593, respectively. The Company has used a combination of cash on hand, cash flow from operations as well as debt, including the $148 Million Credit Facility and the 2014 Term Loan Facilities as described in Note 9 — Debt, to fully finance the acquisition of these Ultramax newbuilding drybulk vessels. On December 30, 2014, Baltic Trading paid $19,645 for the final payment due for the Baltic Wasp, which has been classified as noncurrent Restricted Cash in the Consolidated Balance Sheets as of December 31, 2014 as the payment was held in an escrow account and not released to the seller until the vessel was delivered to Baltic Trading on January 2, 2015. Refer to Note 1 — General Information for a listing of the delivery dates for the vessels in the Company’s fleet. Below market time charters, including those acquired during previous periods, were amortized as an increase to voyage revenue by the Predecessor Company in the amount of $68 and $334 during the period from January 1 to July 9, 2014 and during the year ended December 31, 2013, respectively. The remaining unamortized fair market value of Time charters acquired at December 31, 2014 was $0. As part of fresh-start reporting, the remaining liability for below market time charters was written-off during the re-valuation of our liabilities, refer to “Financial Statement Presentation” section in Note 1 — General Information. Additionally, as part of fresh-start reporting, an asset for above market time charters was recorded in Time charters acquired in the amount of $450 for the Genco Bourgogne, Genco Muse and Genco Spirit. These above market time charters were amortized as a decrease to voyage revenue by the Successor Company in the amount of $450 during the period from July 9 to December 31, 2014. There was no amortization recorded by the Successor Company during the year ended December 31, 2015. The remaining unamortized fair market value of Time charters acquired at December 31, 2015 and 2014 was $0. Capitalized interest expense associated with the newbuilding contracts entered into by Baltic Trading as recorded by the Successor Company for the year ended December 31, 2015 and for the period from July 9 to December 31, 2014 was $372 and $400, respectively. Capitalized interest expense associated with the newbuilding contracts entered into by Baltic Trading as recorded by the Predecessor Company for the period from January 1 to July 9, 2014 and during the year ended December 31, 2013 was $295 and $0, respectively. |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2015 | |
INVESTMENTS | |
INVESTMENTS | 6 —INVESTMENTS The Company holds an investment in the capital stock of Jinhui and the stock of KLC. Jinhui is a drybulk shipping owner and operator focused on the Supramax segment of drybulk shipping. KLC is a marine transportation service company which operates a fleet of carriers which includes carriers for iron ore, liquefied natural gas and tankers for oil and petroleum products. These investments are designated as AFS and are reported at fair value, with unrealized gains and losses recorded in equity as a component of AOCI. At December 31, 2015 and 2014, the Company held 15,706,825 and 16,335,100 shares of Jinhui capital stock, respectively, which is recorded at its fair value of $12,273 and $26,414, respectively, based on the closing price on December 30, 2015 and 2014, respectively. At December 31, 2015 and 2014, the Company held 3,355 shares of KLC stock which is recorded at its fair value of $54 and $72, respectively, based on the closing price on December 30, 2015 and 2014, respectively. The Company reviews the investment in Jinhui for indicators of other-than-temporary impairment in accordance with ASC 320-10. Based on the Company’s review, it has deemed the investment in Jinhui to be other-than-temporarily impaired as of September 30, 2015 and December 31, 2015 due to the duration and severity of the decline in its market value versus its cost basis and the absence of the intent and ability to recover the initial carrying value of the investment. As a result, during the year ended December 31, 2015, the Successor Company recorded $37,877 of impairment charge which has been recorded in Impairment of Investments in our Consolidated Statement of Operations. The Company will continue to review its investments in Jinhui and KLC for impairment on a quarterly basis. There were no impairment charges recorded by the Successor Company during the period from July 9 to December 31, 2014 or by the Predecessor Company during the period from January 1 to July 9, 2014 or the year ended December 31, 2013. The Company’s investment in Jinhui is a Level 1 item under the fair value hierarchy, refer to Note 13 — Fair Value of Financial Instruments. The unrealized gains (losses) on the Jinhui capital stock and KLC stock are a component of AOCI since these investments are designated as AFS securities. As part of fresh-start reporting, the Company revised its cost basis for its investments in Jinhui and KLC based on their fair values on the Effective Date. As a result of the other-than-temporary impairment of the investment in Jinhui, the cost basis for the investment in Jinhui will be based on its fair value as of December 31, 2015. Refer to Note 12 — Accumulated Other Comprehensive Income (Loss) for a breakdown of the components of AOCI, including the effects of the sale of Jinhui shares and the other-than-temporary impairment of the investment in Jinhui. |
NET LOSS PER COMMON SHARE
NET LOSS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2015 | |
NET LOSS PER COMMON SHARE | |
NET LOSS PER COMMON SHARE | 7 - NET LOSS PER COMMON SHARE The computation of basic net loss per share is based on the weighted-average number of common shares outstanding during the year. The computation of diluted net loss per share assumes the vesting of nonvested stock awards (refer to Note 23 — Stock-Based Compensation), for which the assumed proceeds upon vesting are deemed to be the amount of compensation cost attributable to future services and are not yet recognized using the treasury stock method, to the extent dilutive. Of the 798,615 nonvested shares outstanding at December 31, 2015 for the Successor Company (refer to Note 23 — Stock-Based Compensation), all are anti-dilutive. Of the 5,704,974 MIP Warrants and 3,936,761 of Equity Warrants outstanding at December 31, 2015, all are anti-dilutive. The Successor Company’s diluted net loss per share will also reflect the assumed conversion of the Equity Warrants (refer to Note 1 — General Information) and MIP Warrants issued by the Successor Company (refer to Note 23 — Stock-Based Compensation) if the impact is dilutive under the treasury stock method. The Predecessor Company’s diluted net loss per share will also reflect the assumed conversion under the Predecessor Company’s convertible debt if the impact is dilutive under the “if converted” method. The impact of the shares convertible under the Predecessor Company’s convertible notes is excluded from the computation of diluted net loss per share when interest expense per common share obtainable upon conversion is greater than basic earnings per share. The components of the denominator for the calculation of basic net loss per share and diluted net loss per share are as follows: Successor Predecessor Year Period from Period from Year Ended July 9 to January 1 to Ended December 31, December 31, July 9, December 31, 2015 2014 2014 2013 Common shares outstanding, basic: Weighted-average common shares outstanding, basic Common shares outstanding, diluted: Weighted-average common shares outstanding, basic Dilutive effect of warrants — — — — Dilutive effect of convertible notes — — — — Dilutive effect of restricted stock awards — — — — Weighted-average common shares outstanding, diluted The following table sets forth a reconciliation of the net loss attributable to GS&T and the net loss attributable to GS&T for diluted net loss per share under the “if-converted” method: Successor Predecessor Period from Period from Year July 9 to January 1 to Year Ended December 31, July 9, Ended December 31, 2014 2014 December 31, 2015 (restated) (restated) 2013 Net loss attributable to GS&T $ ) $ ) $ ) $ ) Interest expense related to convertible notes, if dilutive — — — — Net loss attributable to GS&T for the computation of diluted net loss per share $ ) $ ) $ ) $ ) |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2015 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 8 - RELATED PARTY TRANSACTIONS The following represent related party transactions reflected in these consolidated financial statements: Until December 31, 2014, the Company made available employees performing internal audit services to Gener8 Maritime, Inc., formerly General Maritime Corporation (“Gener8”), where the Company’s Chairman, Peter C. Georgiopoulos, also serves as Chairman of the Board. For the year ended December 31, 2015 and for the period from July 9 to December 31, 2014, the Successor Company invoiced $0 and $12, respectively, to Gener8 and for the period from January 1 to July 9, 2014 and for the year ended December 31, 2013, the Predecessor Company invoiced $72 and $145, respectively, to Gener8. The amounts billed to Gener8 include time associated with such internal audit services and other expenditures. Additionally, for the year ended December 31, 2015 and for the period from July 9 to December 31, 2014, the Successor Company incurred travel and other office related expenditures totaling $111 and $53, respectively. For the period from January 1 to July 9, 2014 and for the year ended December 31, 2013, the Predecessor Company incurred travel and other office related expenditures totaling $49 and $133, respectively. These amounts are reimbursable to Gener8 or its service provider. At December 31, 2015 and 2014, the amount due to Gener8 from the Company was $8 and $41, respectively. During the year ended December 31, 2015 and the period from July 9 to December 31, 2014, the Successor Company incurred legal services (primarily in connection with vessel acquisitions) aggregating $18 and $11, respectively, from Constantine Georgiopoulos, the father of Peter C. Georgiopoulos, Chairman of the Board. Additionally, during the period from January 1 to July 9, 2014 and during the year ended December 31, 2013, the Predecessor Company incurred legal services aggregating $3 and $48, respectively, from Constantine Georgiopoulos. At December 31, 2015 and 2014, the amount due to Constantine Georgiopoulos was $11 and $9, respectively. The Company has entered into agreements with Aegean Marine Petroleum Network, Inc. (“Aegean”) to purchase lubricating oils for certain vessels in the their fleets. Peter C. Georgiopoulos, Chairman of the Board of the Company, is Chairman of the Board of Aegean. During the year ended December 31, 2015 and the period from July 9 to December 31, 2014, Aegean supplied lubricating oils to the Successor Company’s vessels aggregating $1,652 and $790, respectively. Additionally, during the year ended December 31, 2015, Aegean supplied fuel to the Successor Company’s vessels aggregating $73. During the period from January 1 to July 9, 2014 and during the year ended December 31, 2013; Aegean supplied lubricating oils to the Predecessor Company’s vessels aggregating $1,087 and $1,521, respectively. At December 31, 2015 and 2014, $219 and $267 remained outstanding, respectively. During the year ended December 31, 2015 and the period from July 9 to December 31, 2014, the Successor Company invoiced MEP for technical services provided and expenses paid on MEP’s behalf aggregating $3,233 and $1,618, respectively. During the period from January 1 to July 9, 2014 and during the year ended December 31, 2013, the Predecessor Company invoiced MEP for technical services provided and expenses paid on MEP’s behalf aggregating $1,743 and $3,430, respectively. Peter C. Georgiopoulos, Chairman of the Board, is a director of and has a minority interest in MEP. At December 31, 2015 and 2014, $603 and $10, respectively, was due to the Company from MEP. Total service revenue earned by the Successor Company for the technical service provided to MEP for the year ended December 31, 2015 and for the period from July 9 to December 31, 2014 was $3,175 and $1,584, respectively. Total service revenue earned by the Predecessor Company for technical services provided to MEP for the period from January 1 to July 9, 2014 and for the year ended December 31, 2013 was $1,701 and $3,285, respectively. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2015 | |
DEBT | |
DEBT | 9 - DEBT Long-term debt consists of the following: Successor Successor December 31, 2015 December 31, 2014 $100 Million Term Loan Facility $ $ $253 Million Term Loan Facility $44 Million Term Loan Facility 2015 Revolving Credit Facility — $98 Million Credit Facility — 2010 Credit Facility — $148 Million Credit Facility — $22 Million Term Loan Facility 2014 Term Loan Facilities Less: Current portion ) ) Long-term debt $ — $ Collateral Maintenance Compliance The Company is required to be in compliance with covenants under all of its eight credit facilities on a quarterly basis. At December 31, 2015, we were not in compliance with the collateral maintenance covenants under the $253 Million Term Loan Facility, 2014 Term Loan Facilities and the $22 Million Term Loan Facility. Furthermore, during the first quarter of 2016, the Company is not in compliance with the collateral maintenance covenant under the $100 Million Term Loan Facility and the $148 Million Credit Facility. See the description of each facility below for detailed information surrounding the specific shortfall and applicable cure, if any. Additionally, each of the Company’s credit facilities contain cross default provisions that could be triggered by the Company’s failure to satisfy its collateral maintenance covenants if such failure is not cured or waived within the applicable grace period. Given the foregoing noncompliance, the existence of the cross default provisions, and the absence of any current solution which would cure the noncompliance for at least the next 12 months, the Company has determined that it should classify its outstanding indebtedness as a current liability as of December 31, 2015. Amendment and Consent Agreements Related to the Merger On July 14, 2015, Baltic Trading and certain of its wholly owned subsidiaries entered into agreements (the “Amendment and Consent Agreements”) to amend, provide consents under, or waive certain provisions of the $22 Million Term Loan Facility (as defined below), 2014 Term Loan Facilities (as defined below) and the $148 Million Credit Facility (as defined below) (each a “Facility” and collectively the “Facilities”). The Amendment and Consent Agreements implemented, among other things, the following: · The existing covenants measuring collateral maintenance under the 2014 Term Loan Facilities were amended as follows: the minimum fair market value of vessels pledged as security (together with the value of any additional collateral) is required to be (i) for the period from June 30, 2015 up to and including December 30, 2015, 125% of the amount outstanding under such Facilities; (ii) for the period from December 31, 2015 up to and including March 30, 2016, 130% of such amount; and (iii) for the period from March 31, 2016 and thereafter, 135% of such amount. · The existing covenant measuring collateral maintenance under the $22 Million Term Loan Facility was amended so that through and including the period ending June 30, 2016, the minimum fair market value of vessels mortgaged under such Facility is required to be 110% of the amount outstanding under such Facility. · Under the $148 Million Credit Facility, the existing covenant measuring collateral maintenance was amended so that through and including the period ending December 31, 2015, the minimum fair market value of vessels mortgaged under such Facility is required to be 130% of the amount outstanding under such Facility and thereafter, 140% of such amount, except that for the period through and including the period ending December 31, 2015, such percentage was increased to 140% at the time of funding of the term loan for the Baltic Scorpion on August 3, 2015. · The calculation of the minimum consolidated net worth was reduced by $30,730 to $270,150 under each Facility to account for the reduction of equity due to the impairment associated with the sale of the Baltic Tiger and Baltic Lion vessels. · The measurement of the maximum leverage ratio under each Facility was amended to exclude from the numerator thereof (which is the amount of indebtedness included in the calculation of such financial covenant) any committed but undrawn working capital lines. · Under the $148 Million Credit Facility, following consummation of the Merger on July 17, 2015, the amount of cash to be held by the administrative agent under such Facility (or otherwise remaining undrawn under certain working capital lines) for each collateral vessel mortgaged under such Facility, as required under the under the minimum liquidity covenant under such Facility, was amended to an amount of $750 per vessel. · Following completion of the Merger on July 17, 2015, all corporate wide financial covenants of Baltic Trading are to be measured on a consolidated basis with the Company (the “Consolidated Covenant Amendments”). · Waivers or consents under the Facilities to permit the delisting of Baltic Trading’s stock on the New York Stock Exchange (which constitutes a change of control under each such Facility) and the termination of the Management Agreement, dated as of March 15, 2010, by and between GS&T and Baltic Trading. · Waivers or consents under each of the Facilities to permit the Merger. · Waivers or consents to certain covenants under each of the Facilities to the extent such covenants would otherwise be breached as a result of the Merger. On July 17, 2015, when the Merger was completed, the Company executed a guaranty of the obligations of the borrowers under each of the Facilities. The execution of the guarantees, together with certain other items that were previously delivered, satisfied all conditions to the effectiveness of all provisions of the Amendment and Consent Agreements. Bankruptcy Proceedings To allow discussions with the Company’s creditors concerning the Company’s restructuring to continue into April 2014 without the need to file for immediate bankruptcy relief, on March 31, 2014, the Company entered into agreements with certain of the lenders under the 2007 Credit Facility, the $100 Million Term Loan Facility, and the $253 Million Term Loan Facility (the Company’s “Credit Facilities”) to obtain waivers or forbearances with respect to certain potential or actual events of default as of March 31, 2014 as follows (the “Relief Agreements”): · not making the scheduled amortization payment on March 31, 2014 under our 2007 Credit Facility; · not meeting the consolidated interest ratio covenant for the period ended March 31, 2014; · not meeting the maximum leverage ratio covenant for the period ending March 31, 2014; · not meeting the collateral maintenance test under the 2007 Credit Facility; · not meeting the minimum cash balance covenant under the 2007 Credit Facility; · not furnishing audited financial statements to the lenders within 90 days after year end for the year ended December 31, 2013; · a cross-default with respect to our outstanding interest rate swap with respect to the foregoing; · cross-defaults among our credit facilities with respect to the foregoing; and · any related defaults or events of default resulting from the failure to give notice with respect to any of the foregoing. The Relief Agreement for our 2007 Credit Facility provided that the agent and consenting lenders would forbear to exercise their rights and remedies through 11:59 p.m. on April 1, 2014 with respect to the foregoing potential or actual events of default, subject to earlier termination if a subsequent event of default occurs under the credit agreements other than those described above or if the Company breaches the terms of the Relief Agreement. The Relief Agreements for the Company’s other two Credit Facilities provided that the agent and lenders waived through 11:59 p.m. on April 1, 2014 the foregoing potential or actual events of default, subject to earlier termination if a subsequent event of default occurs under its credit agreements or if the Company breaches the terms of the Relief Agreements. Notwithstanding such waivers and forbearances, the fact that the Company did not make the scheduled amortization payment on March 31, 2014 constituted an event of default under its currently outstanding interest rate swap. In addition, under the indenture and supplemental indenture (the “Indenture”) governing the Company’s 5.0% Convertible Senior Notes issued on July 27, 2010 (the “2010 Notes”), the Company’s failure to make such payment would constitute an event of default under the Indenture if the Company failed to cure such default within 30 days after notice from the trustee under the Indenture. On April 1, 2014, the Company entered into new agreements with the other parties to the Relief Agreements that extended the expiration of the forbearances and waivers under the Relief Agreements from 11:59 p.m. on April 1, 2014 to 11:59 p.m. on April 21, 2014. Also, the forbearances and waivers would have terminated if a definitive agreement for the Company’s restructuring was not effective by 11:59 p.m. on April 4, 2014. The Company avoided this termination through our entry into the Support Agreement. Such new agreements are otherwise on substantially the same terms and conditions as the Relief Agreements. As of July 9, 2014, the Effective Date, the 2007 Credit Facility was terminated and the liens and mortgages related thereto were released as part of the Plan. Refer to the “Bankruptcy Filing” section of Note 1 — General Information for further information regarding the Chapter 11 Cases. August 2012 Credit Facility Agreements On August 1, 2012, the Company entered into agreements (the “August 2012 Agreements”) to amend or waive certain provisions of the agreements for the 2007 Credit Facility, $100 Million Term Loan Facility and the $253 Million Term Loan Facility (as defined below). The agreements implemented, among other things, the following: · The waiver of the Company’s compliance with its existing maximum leverage ratio covenant and minimum permitted consolidated interest ratio covenant that commenced on October 1, 2011 and ends on and includes March 31, 2013 was extended to end on and include December 31, 2013 (which we refer to as the extended waiver period). · The gross interest-bearing debt to total capital covenant which originally ended on and included March 31, 2013 was extended to end on and include December 31, 2013. This covenant limits the ratio of the Company’s interest-bearing indebtedness to the sum of its interest-bearing indebtedness and its consolidated net worth in accordance with GAAP to 62.5% on the last day of any fiscal quarter during the waiver period. · Scheduled amortization payments through and including the quarter ending December 31, 2013 were deferred until the final payment at maturity under the 2007 Credit Facility and prepaid under the other two credit facilities. The next scheduled amortization payments under these facilities will be due in the first quarter of 2014 in the aggregate principal amount of $55,193. · Commencing September 30, 2012, the Company was to repay the 2007 Credit Facility on a quarterly basis using excess cash, defined as the balance over $100,000 in the Company’s and certain of its subsidiaries’ accounts pledged under the 2007 Credit Facility. Of such repayments, 25% would be allocated to the final payment at maturity, and 75% will be applied entirely against each successive scheduled mandatory principal repayment beginning with the payment due March 31, 2014. Certain other mandatory repayments under the existing terms of this facility as well as voluntary prepayments will be applied in the same manner. These obligations continued until the later of December 31, 2013 and the date on which the appraised value of certain mortgaged vessels is equal to at least 100% of the aggregate principal amount of the Company’s loans, letters of credit and certain hedge obligations under the 2007 Credit Facility. · The Company and its subsidiaries (other than Baltic Trading and its subsidiaries) would not increase the amount of principal indebtedness currently outstanding under each of its three credit agreements or change their maturity dates. · Indebtedness that the Company and its subsidiaries (other than Baltic Trading and its subsidiaries) may incur in connection with vessel acquisitions will be limited to 60% of the lesser of the vessel’s acquisition cost and fair market value. Any newly acquired vessel will subject to a security interest under the 2007 Credit Facility. · The Applicable Margin over LIBOR payable on the principal amount outstanding under the 2007 Credit Facility increased from 2.0% to 3.0% per annum. · The minimum cash balance required under the 2007 Credit Facility increased from $500 to $750 per vessel mortgaged under the 2007 Credit Facility. · The Company agreed to grant additional security for its obligations under the 2007 Credit Facility, consisting of a pledge of the Class B Stock of Baltic Trading held by Genco Investments LLC and a second priority security interest in vessels pledged under its other two credit facilities or in connection with any new indebtedness (excluding in each case vessels owned by Baltic Trading and its subsidiaries). · Consenting lenders under each of the three credit facilities received an upfront fee of 0.25% on the amount of outstanding loans. As required under the August 2012 Agreements, the Company prepaid $57,893 under its 2007 Credit Facility, $30,450 under its $253 Million Term Loan Facility, and $11,538 under its $100 Million Term Loan Facility on August 1, 2012. The prepayment under the 2007 Credit Facility was applied to the final payment due under the facility. The prepayments under the other two facilities were applied in order of maturity and fulfilled all scheduled amortization payments through December 31, 2013 under these facilities. In addition, lenders under the 2007 Credit Facility will receive a fee equal to 1.25% of the principal amount outstanding following such prepayment, or $13,199, on the earlier date of the maturity date of this facility or the date on which all obligations under this facility have been paid in full. On the Effective Date when the 2007 Credit Facility was terminated, this liability was discharged. December 2011 Credit Facility Agreements On December 21, 2011, the Company entered into agreements (the “December 2011 Agreements”) to amend or waive provisions of the 2007 Credit Facility, the $100 Million Term Loan Facility and the $253 Million Term Loan Facility. The aforementioned credit facilities are explained in further detail below. The agreements implemented, among other things, the following: · The Company’s compliance with its existing maximum leverage ratio covenant was waived for a period starting on October 1, 2011 and ending on (and including) March 31, 2013, or the waiver period. This covenant governs the ratio of the Company’s net debt to EBITDA (as such term is defined in the credit agreements). · The Company’s compliance with its existing minimum permitted consolidated interest ratio covenant is also waived for the waiver period. This covenant governs the ratio of the Company’s EBITDA to consolidated interest expense. · A new gross interest-bearing debt to total capital covenant applies to the Company for the duration of the waiver period. This covenant limits the ratio of the Company’s interest-bearing indebtedness to the sum of its interest-bearing indebtedness and its consolidated net worth in accordance with GAAP to 62.5% on the last day of any fiscal quarter during the waiver period. · Consenting lenders under the facilities received an upfront fee of 0.25% of the amount of outstanding loans. As contemplated under these agreements, the Company prepaid $52,500 under its 2007 Credit Facility, $7,000 under its $253 Million Term Loan Facility, and $3,000 under its $100 Million Term Loan Facility. All such prepayments were applied in inverse order of maturity under each credit facility. In addition, the 2007 Credit Facility is subject to a facility fee of 2.0% per annum on the average daily outstanding principal amount of the loans thereunder, payable quarterly in arrears, which was reduced to 1.0% on February 28, 2012 when the Company completed an equity offering of 7,500,000 shares of common stock. The other two credit facilities were not subject to a facility fee. 2007 Credit Facility On July 20, 2007, the Company entered into the 2007 Credit Facility with DnB Nor Bank ASA for the purpose of acquiring nine Capesize vessels and refinancing the Company’s existing 2005 Credit Facility and Short-Term Line. DnB Nor Bank ASA is also Mandated Lead Arranger, Bookrunner, and Administrative Agent. The Company has used borrowings under the 2007 Credit Facility to repay amounts outstanding under the 2005 Credit Facility and the Short-Term Line, and these two facilities have accordingly been terminated. As noted in the “Bankruptcy Proceedings” section above, the 2007 Credit Facility was terminated on the Effective Date. On January 26, 2009, the Company entered into an amendment to the 2007 Credit Facility (the “2009 Amendment”) which implemented the following modifications to the terms of the 2007 Credit Facility: · Compliance with the existing collateral maintenance financial covenant was waived effective for the year ended December 31, 2008 and until the Company can represent that it is in compliance with all of its financial covenants and is otherwise able to pay a dividend and purchase or redeem shares of common stock under the terms of the Credit Facility in effect before the 2009 Amendment. The Company’s cash dividends and share repurchases were suspended until the Company can represent that it is in a position to again satisfy the collateral maintenance covenant. · The total amount of the 2007 Credit Facility is subject to quarterly reductions of $12,500 beginning March 31, 2009 through March 31, 2012 and quarterly reductions of $48,195 beginning June 30, 2012 and thereafter until the maturity date. After the prepayment of $52,500 and $57,893 made during December 2011 and August 2012 pursuant to the December 2011 Agreements and August 2012 Agreements, respectively, a final payment of $381,182 will be due on the maturity date. · The Applicable Margin to be added to the London Interbank Offered Rate to calculate the rate at which the Company’s borrowings bear interest is 2.00% per annum. This was increased to 3.00% per annum pursuant to the August 2012 Agreements as noted above. · The commitment commission paid to each lender is 0.70% per annum of the daily average unutilized commitment of such lender. Amounts repaid under the 2007 Credit Facility may not be reborrowed. The 2007 Credit Facility had a maturity date of July 20, 2017. Loans made under the 2007 Credit Facility may be and have been used for the following: · up to 100% of the en bloc purchase price of $1,111,000 for nine modern drybulk Capesize vessels, which the Company has agreed to purchase from Metrostar; · repayment of amounts previously outstanding under the Company’s 2005 Credit Facility, or $206,233; · the repayment of amounts previously outstanding under the Company’s Short-Term Line, or $77,000; · possible acquisitions of additional drybulk carriers between 25,000 and 180,000 dwt that are up to ten years of age at the time of delivery and not more than 18 years of age at the time of maturity of the credit facility; · up to $50,000 of working capital, if available; and · the issuance of up to $50,000 of standby letters of credit. All amounts owing under the 2007 Credit Facility were secured by the following: · cross-collateralized first priority mortgages on 35 of the Company’s existing vessels and any new vessels financed with the 2007 Credit Facility; · an assignment of any and all earnings of the mortgaged vessels; · an assignment of all insurances on the mortgaged vessels; · a first priority perfected security interest in all of the shares of Jinhui owned by the Company; · an assignment of the shipbuilding contracts and an assignment of the shipbuilder’s refund guarantees meeting the Administrative Agent’s criteria for any additional newbuildings financed under the 2007 Credit Facility; and · a first priority pledge of the Company’s ownership interests in each subsidiary guarantor. The Company completed a pledge of its ownership interests in the subsidiary guarantors that own the nine Capesize vessels acquired. The other collateral described above was pledged, as required, within 30 days of the effective date of the 2007 Credit Facility. The Company’s borrowings under the 2007 Credit Facility bore interest at the London Interbank Offered Rate (“LIBOR”) for an interest period elected by the Company of one, three, or six months, or longer if available, plus the Applicable Margin which was 0.85% per annum. Effective January 26, 2009, due to the 2009 Amendment, the Applicable Margin increased to 2.00%. Additionally, effective August 1, 2012, due to the August 2012 Agreements, the Applicable Margin increased to 3.00%. In addition to other fees payable by the Company in connection with the 2007 Credit Facility, the Company paid a commitment fee at a rate of 0.20% per annum of the daily average unutilized commitment of each lender under the facility until September 30, 2007, and 0.25% thereafter. Effective January 26, 2009, due to the 2009 Amendment, the rate increased to 0.70% per annum of the daily average unutilized commitment of such lender. Refer to “December 2011 Credit Facility Agreements” above for the facility fee that the Company is subject to pursuant to the December 2011 Agreements. The 2007 Credit Facility included the following financial covenants which applied to the Company and its subsidiaries on a consolidated basis and are measured at the end of each fiscal quarter beginning with June 30, 2007: · The leverage covenant requires the maximum average net debt to EBITDA ratio to be no greater than 5.5:1.0. As per the December 2011 Agreements and the August 2012 Agreements, this covenant has been waived for a period beginning on October 1, 2011 and ending on (and including) December 31, 2013. · Cash and cash equivalents must not be less than $750 per mortgaged vessel. This was increased from $500 per mortgaged vessel effective August 1, 2012 pursuant to the August 2012 Agreements. · The ratio of EBITDA to interest expense, on a rolling last four-quarter basis, must be no less than 2.0:1.0. As per the December 2011 Agreements and the August 2012 Agreements, this covenant has been waived for a period beginning on October 1, 2011 and ending on (and including) December 31, 2013. · After July 20, 2007, consolidated net worth, as defined in the 2007 Credit Facility, must be no less than $263,300 plus 80% of the value of the any new equity issuances of the Company from June 30, 2007. Based on the equity offerings completed in October 2007, May 2008, July 2010 and February 2012, consolidated net worth must be no less than $674,555. · The aggregate fair market value of the mortgaged vessels must at all times be at least 130% of the aggregate outstanding principal amount under the credit facility plus all letters of credit outstanding; the Company has a 30 day remedy period to post additional collateral or reduce the amount of the revolving loans and/or letters of credit outstanding. This covenant was waived effective for the year ended December 31, 2008 and indefinitely until the Company can represent that it is in compliance with all of its financial covenants as per the 2009 Amendment as described above. Refer to “Bankruptcy Proceedings” section above for further information about the Chapter 11 Cases and the termination of the 2007 Credit Facility on the Effective Date. $98 Million Credit Facility On November 4, 2015, thirteen of the Company’s wholly-owned subsidiaries entered into a Facility Agreement, by and among such subsidiaries as borrowers (collectively, the “Borrowers”); Genco Holdings Limited, a newly formed direct subsidiary of Genco of which the Borrowers are direct subsidiaries (“Holdco”); certain funds managed or advised by Hayfin Capital Management, Breakwater Capital Ltd, or their nominee, as lenders; and Hayfin Services LLP, as agent and security agent (the “$98 Million Credit Facility”). The Borrowers borrowed the maximum available amount of $98,271 under the facility on November 10, 2015. As of December 31, 2015, there was no availability under the $98 Million Credit Facility. At December 31, 2015 and 2014, the total outstanding debt balance was $98,271 and $0, respectively. Borrowings under the facility are available for working capital purposes. The facility has a final maturity date of September 30, 2020, and the principal borrowed under the facility will bear interest at LIBOR for an interest period of three months plus a margin of 6.125% per annum. The facility has no fixed amortization payments for the first two years and fixed amortization payments of $2,500 per quarter thereafter. To the extent the value of the collateral under the facility is 182% or less of the loan amount outstanding, the Borrowers are to prepay the loan from earnings received from operation of the thirteen collateral vessels after deduction of the following amounts: costs, fees, expenses, interest, and fixed principal repayments under the facility; operating expenses relating to the thirteen vessels; and the Borrowers’ pro rata share of general and administrative expenses based on the number of vessels they own. The Facility Agreement requires the Borrowers and, in certain cases, the Company and Holdco to comply with a number of covenants substantially similar to those in the other credit facilities of Genco and its subsidiaries, including financial covenants related to maximum leverage, minimum consolidated net worth, minimum liquidity, and dividends; collateral maintenance requirements; and other customary covenants. The Company is prohibited from paying dividends under this facility until May 1, 2017. Following May 1, 2017, the amount of dividends the Company may pay is limited based on the amount of the loans outstanding under the 2015 Revolving Credit Facility and the $98 Million Credit Facility, as well as the ratio of the value of vessels and certain other collateral pledged under the $98 Million Credit Facility. The Facility Agreement includes usual and customary events of default and remedies for facilities of this nature. As of December 31, 2015 and 2014, the Company had deposited $9,750 and $0 that has been reflected as restricted cash. Restricted cash will be released only if the underlying collateral is sold or disposed of. Borrowings under the facility are secured by first priority mortgage on the vessels owned by the Borrowers, namely the Genco Constantine, the Genco Augustus, the Genco London, the Genco Titus, the Genco Tiberius, the Genco Hadrian, the Genco Knight, the Genco Beauty, the Genco Vigour, the Genco Predator, the Genco Cavalier, the Genco Champion, and the Genco Charger, and related collateral. Pursuant to the Facility Agreement and a separate Guarantee executed by the Company, the Company and Holdco are acting as guarantors of the obligations of the Borrowers and each other under the Facility Agreement and its related documentation. As of December 31, 2015, the Company believed it was in compliance with all of the financial covenants under the $98 Million Credit Facility. However, as of December 31, 2015, the Company believed it was probable that the Company would not be in compliance with certain covenants at measurement dates within the next twelve months. As such, the debt outstanding under this facility of $98,271 has been classified as current liability in the Consolidated Balance Sheet as of December 31, 2015. The following table sets forth the scheduled repayment of the outstanding debt of $98,271 at December 31, 2015 under the $98 Million Credit Facility, although the total debt outstanding under this facility has been classified as a current liability as noted above: Year Ending December 31, Total 2016 $ — 2017 2018 2019 2020 Total debt $ 2015 Revolving Credit Facility On April 7, 2015, the Company’s wholly-owned subsidiaries, Genco Commodus Limited, Genco Maximus Limited, Genco Claudius Limited, Genco Hunter Limited and Genco Warrior Limited (collectively, the “Subsidiaries”) entered into a loan agreement by and among the Subsidiaries, as borrowers, ABN AMRO Capital USA LLC, as arranger, facility agent, security agent, and as lender, providing for a $59,500 revolving credit facility, with an uncommitted accordion feature that has since expired (the “2015 Revolving Credit Facility”). On April 7, 2015, the Company entered into a guarantee of the obligations of the Subsidiaries under the 2015 Revolving Credit Facility, in favor of ABN AMRO Capital USA LLC. Borrowings under the 2015 Revolving Credit Facility will be used for general corporate purposes including “working capital” (as defined in the 2015 Revolving Credit Facility) and to finance the purchase of drybulk vessels. The 2015 Revolving Credit Facility has a maturity date of April 7, 2020. Borrowings under the 2015 Revolving Credit Facility bear interest at LIBOR plus a margin based on a combination of utilization levels under the 2015 Revolving Credit Facility and a security maintenance cover ranging from 3.40% per annum to 4.25% per annum. The commitment under the 2015 Revolving Credit Facility is subject to quarterly reductions of $1,641. Borrowings under the 2015 Revolving Credit Facility are subject to 20 equal consecutive quarterly installment repayments commencing three months after the date of the loan agreement, or July 7, 2015. A commitment fee of 1.5% per annum is payable on the undrawn amount of the maximum loan amount. Borrowings under the 2015 Revolving Credit Facility are to be secured by liens on each of the Subsidiaries’ respective vessels; specifically, the Genco Commodus, Genco Maximus, Genco Claudius, Genco Hunter and Genco Warrior and other related assets. The 2015 Revolving Credit Facility requires the Subsidiaries to comply with a number of customary covenants including financial covenants related to collateral maintenance, liquidity, leverage, debt service reserve and dividend restrictions. On April 8, 2015, the Company drew down $25,000 on the 2015 Revolving Credit Facility for working capital purposes and to partially fund the purchase of the Baltic Lion and Baltic Tiger from Baltic Trading. Additionally, on July 10, 2015 and October 14, 2015, the Company drew down $10,000 and $21,218, respectively, on the 2015 Revolving Credit Facility for working capital purposes. As of December 31, 2015, the Company has utilized its maximum borrowing capacity. At December 31, 2015 and December 31, 2014, the total outstanding debt balance was $56,218 and $0, respectively. As of December 31, 2015, the Company believed it was in compliance with all of the financial covenants under the 2015 Revolving Credit Facility. However, as of December 31, 2015, the Company believed it was probable that the Company would not be in compliance with certain covenants at measurement dates within the next twelve months. As such, the debt outstanding under this facility of $56,218 has been classified as current liability in the Consolidated Balance Sheet as of December 31, 2015. The following table sets forth the scheduled repayment of the outstanding debt of $56,218 at December 31, 2015 under the 2015 Revolving Credit Facility, although the total debt outstanding under this facility has been classified as a current liability as noted above: Year Ending December 31, Total 2016 $ 2017 2018 2019 2020 Total debt $ $100 Million Term Loan Facility On August 12, 2010, the Company entered into the $100 Million Term Loan Facility with Crédit Agricole Corporate and Investment Bank, which is also acting as Agent and Security Trustee; and Crédit Industriel et Commercial; and Skandinaviska Enskilda Banken AB (publ) are the lenders under the facility. The Company has used the $100 Million Term Loan Facility to fund or refund to the Company a portion of the purchase price of the acquisition of five vessels from Metrostar. Under the terms of the facility, the $100 Million Term Loan Facility was drawn down in five equal tranches of $20,000 each, with one tranche per vessel. The $100 Million Term Loan Facility has a final maturity date of seven years from the date of the first drawdown, or August 17, 2017, and borrowings under the facility bear interest at LIBOR for an interest period of one, three or six months (as elected by the Company), plus 3.00% per annum. A commitment fee of 1.35% is payable on the undrawn committe |
CONVERTIBLE SENIOR NOTES
CONVERTIBLE SENIOR NOTES | 12 Months Ended |
Dec. 31, 2015 | |
CONVERTIBLE SENIOR NOTES | |
CONVERTIBLE SENIOR NOTES | 10 — CONVERTIBLE SENIOR NOTES The Company issued $125,000 of the 5.0% Convertible Senior Notes on July 27, 2010 (the “2010 Notes”). The Indenture for the 2010 Notes included customary agreements and covenants by the Company, including with respect to events of default. As noted in Note 1 — General Information, the filing of the Chapter 11 Cases by the Company on April 21, 2014 constituted an event of default with respect to the 2010 Notes. On this date, the Company ceased recording interest expense related to the 2010 Notes. During the period from January 1 to July 9, 2014, interest expense of $2,522, including the amortization of the discount of the liability component and the bond coupon interest expense, was not recorded by the Predecessor Company, which would have been incurred had the indebtedness not been reclassified as a Liability subject to compromise. On the Effective Date, when the Company emerged from Chapter 11, the 2010 Notes and the Indenture were fully satisfied and discharged. The following tables provide additional information about the Predecessor Company’s 2010 Notes: Period from Year January 1 to Ended July 9, December 31, 2014 (a) 2013 Effective interest rate on liability component % % Cash interest expense recognized $ $ Non-cash interest expense recognized Non-cash deferred financing amortization costs included in interest expense (a) The amounts and percentage reflect amounts through April 21, 2014 since the Company ceased recording interest expense due to the Chapter 11 Cases. |
INTEREST RATE SWAP AGREEMENTS
INTEREST RATE SWAP AGREEMENTS | 12 Months Ended |
Dec. 31, 2015 | |
INTEREST RATE SWAP AGREEMENTS | |
INTEREST RATE SWAP AGREEMENTS | 11 - INTEREST RATE SWAP AGREEMENTS As of March 31, 2014, the Company was in default under covenants of its 2007 Credit Facility due to the default on the scheduled debt amortization payment due on March 31, 2014. Refer to Note 1 — General Information for additional information regarding defaults relating to the swap. The default under the 2007 Credit Facility required the Company to elect interest periods of only one-month, therefore the Company no longer qualified for hedge accounting under the original designation and hedge accounting was terminated effective March 31, 2014. Additionally, the filing of the Chapter 11 Cases by the Company on the Petition Date constituted an event of default with respect to the outstanding interest rate swap with DNB Bank ASA. As a result, DNB Bank ASA terminated all transactions under the remaining swap agreement effective April 30, 2014 and filed a secured claim with the Bankruptcy Court of $5,622. The claim was paid to DNB Bank ASA by the Successor Company during the period from July 9 to December 31, 2014. As of December 31, 2015 and 2014, the Company did not have any interest rate swap agreements. The swap agreements held by the Predecessor Company synthetically converted variable rate debt to fixed rate debt at the fixed interest rate of the swap plus the Applicable Margin, as defined in the “2007 Credit Facility” section above in Note 9 — Debt. The differentials to be paid or received for these swap agreements were recognized as an adjustment to Interest expense as incurred. The Company utilized cash flow hedge accounting for these swaps through March 31, 2014, whereby the effective portion of the change in value of the swaps was reflected as a component of AOCI. The ineffective portion is recognized as Other expense, which is a component of Other (expense) income. On March 31, 2014, the cash flow hedge accounting on the remaining swap agreement was discontinued. Once cash flow hedge accounting was discontinued, the changes in the fair value of the interest rate swaps were recorded in the Consolidated Statement of Operations in Interest expense and the remaining amounts included in AOCI were amortized to interest expense over the original term of the hedging relationship for the Predecessor Company. The interest expense pertaining to the interest rate swaps for the Predecessor Company for the period from January 1 to July 9, 2014 and the year ended December 31, 2013 was $2,580 and $9,963, respectively. The following tables present the impact of derivative instruments and their location within the Consolidated Statement of Operations for the Predecessor Company: The Effect of Derivative Instruments on the Consolidated Statement of Operations For the Period from January 1 to July 9, 2014 Predecessor Company Derivatives in Cash Flow Hedging Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from AOCI into income (Effective Amount of Gain (Loss) Reclassified from AOCI into income (Effective Portion) Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) Relationships 2014 Portion) 2014 Portion) 2014 Interest rate contracts $ ) Interest Expense $ ) Other Income (Expense) $ — The Effect of Derivative Instruments on the Consolidated Statement of Operations For the Year Ended December 31, 2013 Predecessor Company Derivatives in Cash Flow Hedging Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from AOCI into income (Effective Amount of Gain (Loss) Reclassified from AOCI into income (Effective Portion) Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) Relationships 2013 Portion) 2013 Portion) 2013 Interest rate contracts $ ) Interest Expense $ ) Other Income (Expense) $ ) The Effect of Derivative Instruments on the Consolidated Statement of Operations For the Period from January 1 to July 9, 2014 and for the Year Ended December 31, 2013 Predecessor Company Amount of Gain (Loss) Recognized in Income on Derivative Location of For the Period Year Gain (Loss) from January 1 to Ended Derivatives not designated Recognized in Income July 9, December 31, as Hedging Instruments on Derivative 2014 2013 Interest rate contracts Interest Expense $ ) $ — The Company was required to provide collateral in the form of vessel assets to support the interest rate swap agreements, excluding vessel assets of Baltic Trading. Prior to the termination of the 2007 Credit Facility on the Effective Date, the Company’s 35 vessels mortgaged under the 2007 Credit Facility served as collateral in the aggregate amount of $100,000. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2015 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The components of AOCI included in the accompanying consolidated balance sheets consist of net unrealized gain (loss) on cash flow hedges and net unrealized gains (losses) from investments in Jinhui stock and KLC stock for the Predecessor Company. For the Successor Company, the components of AOCI included in the accompanying consolidated balance sheets consist only of net unrealized gains (losses) from investments in Jinhui stock and KLC stock based on the revised cost basis recorded as part of fresh-start reporting until September 30, 2015, when the cost basis for Jinhui was changed due to other-than-temporary impairment. Refer to Note 6 — Investments for further detail. Changes in AOCI by Component For the Period from July 9, 2014 to December 31, 2015 Successor Company Net Unrealized Gain (Loss) on Investments AOCI — July 9, 2014 $ — OCI before reclassifications ) Amounts reclassified from AOCI — Net current-period OCI ) AOCI — December 31, 2014 $ ) OCI before reclassifications ) Amounts reclassified from AOCI Net current-period OCI AOCI — December 31, 2015 $ ) Changes in AOCI by Component For the Period from January 1, 2013 to July 9, 2014 Predecessor Company Net Unrealized Gain (Loss) on Cash Flow Hedges Net Unrealized Gain (Loss) on Investments Total AOCI — January 1, 2013 $ ) $ $ ) OCI before reclassifications Amounts reclassified from AOCI ) — ) Net current-period OCI AOCI — December 31, 2013 $ ) $ $ OCI before reclassifications ) ) ) Amounts reclassified from AOCI — Net current-period OCI ) ) AOCI — July 9, 2014 $ ) $ $ Reclassifications Out of AOCI Successor Company Amount Reclassified from AOCI Successor For the For the Year Period from Ended July 9 to Affected Line Item in December 31, December 31, the Statement Where Details about AOCI Components 2015 2014 Net Loss is Presented Net unrealized loss on investments Realized loss on sale of AFS investment $ ) $ — Other (expense) income Impairment of AFS investment ) — Impairment of investment Total reclassifications for the period $ ) $ — Reclassification Out of AOCI Predecessor Company For the For the Period from Year January 1 to Ended Affected Line Item in July 9, December 31, the Statement Where Details about AOCI Components 2014 2013 Net Loss is Presented Gains and losses on cash flow hedges Interest rate contracts $ ) $ ) Interest expense Total reclassifications for the period $ ) $ ) |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2015 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 13 - FAIR VALUE OF FINANCIAL INSTRUMENTS The fair values and carrying values of the Company’s financial instruments at December 31, 2015 and 2014 which are required to be disclosed at fair value, but not recorded at fair value, are noted below. Successor December 31, 2015 December 31, 2014 Carrying Value Fair Value Carrying Value Fair Value Cash and cash equivalents $ $ $ $ Restricted cash Floating rate debt The fair value of the floating rate debt under the Amended and Restated $100 Million Term Loan Facility and the Amended and Restated $253 Million Term Loan Facility are based on rates obtained upon our emergence from Chapter 11 on the Effective Date and there were no changes to rates pursuant to the April 2015 Amendments. The fair value of the floating rate debt under the $44 Million Term Loan Facility is based on rates that Baltic Trading initially obtained on the effective date of the facility, and there were no changes to rates pursuant to the Guarantee and Indemnity entered into by the Company during April 2015. The fair value of the floating rate debt under the 2015 Revolving Credit Facility and the $98 Million Credit Facility are based on rates the Company recently obtained upon the effective date of these facilities on April 7, 2015 and November 4, 2015. The fair value of the $148 Million Credit Facility, $22 Million Term Loan Facility and the 2014 Term Loan Facilities is based on rates that Baltic Trading initially obtained upon the effective dates of these facilities which did not change pursuant to the Amendment and Consent Agreements effective on July 14, 2015. Refer to Note 9 — Debt for further information. The carrying value approximates the fair market value for these floating rate loans. The carrying amounts of the Company’s other financial instruments at December 31, 2015 and 2014 (principally Due from charterers and Accounts payable and accrued expenses) approximate fair values because of the relatively short maturity of these instruments. ASC Subtopic 820-10, “Fair Value Measurements & Disclosures” (“ASC 820-10”), applies to all assets and liabilities that are being measured and reported on a fair value basis. This guidance enables the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 requires significant management judgment. The three levels are defined as follows: · Level 1—Valuations based on quoted prices in active markets for identical instruments that the Company is able to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these instruments does not entail a significant degree of judgment. · Level 2—Valuations based on quoted prices in active markets for instruments that are similar, or quoted prices in markets that are not active for identical or similar instruments, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. · Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement. As of December 31, 2015 and 2014, the fair values of the Company’s financial assets and liabilities are categorized as follows: Successor December 31, 2015 Total Quoted Market Prices in Active Markets (Level 1) Investments $ $ Successor December 31, 2014 Total Quoted Market Prices in Active Markets (Level 1) Investments $ $ The Company holds an investment in the capital stock of Jinhui, which is classified as a long-term investment. The stock of Jinhui is publicly traded on the Oslo Stock Exchange and is considered a Level 1 item. The Company also holds an investment in the stock of KLC, which is classified as a long-term investment. The stock of KLC is publicly traded on the Korea Stock Exchange and is considered a Level 1 item. Cash and cash equivalents and restricted cash are considered Level 1 items as they represent liquid assets with short-term maturities. Floating rate debt is considered to be a Level 2 item as the Company considers the estimate of rates it could obtain for similar debt or based upon transactions amongst third parties. The Company did not have any Level 3 financial assets or liabilities during the years ended December 31, 2015 and 2014. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT AND NONCURRENT ASSETS | 12 Months Ended |
Dec. 31, 2015 | |
PREPAID EXPENSES AND OTHER CURRENT AND NONCURRENT ASSETS | |
PREPAID EXPENSES AND OTHER CURRENT AND NONCURRENT ASSETS | 14 - PREPAID EXPENSES AND OTHER CURRENT AND NONCURRENT ASSETS Prepaid expenses and other current assets consist of the following: Successor Successor December 31, 2015 December 31, 2014 Lubricant inventory, fuel oil and diesel oil inventory and other stores $ $ Prepaid items Insurance receivable Other Total prepaid expenses and other current assets $ $ Other noncurrent assets in the amount of $514 at December 31, 2015 and 2014 represent the security deposit related to the operating lease entered into effective April 4, 2011. Refer to Note 21 — Commitments and Contingencies for further information related to the lease agreement. |
DEFERRED FINANCING COSTS
DEFERRED FINANCING COSTS | 12 Months Ended |
Dec. 31, 2015 | |
DEFERRED FINANCING COSTS | |
DEFERRED FINANCING COSTS | 15 — DEFERRED FINANCING COSTS Deferred financing costs includes fees, commissions and legal expenses associated with securing loan facilities and other debt offerings and amending existing loan facilities. These costs are amortized over the life of the related debt and are included in interest expense. Refer to Note 9 — Debt for further information regarding the existing loan facilities. Total net deferred financing costs consist of the following as of December 31, 2015 and 2014: Successor Successor December 31, 2015 December 31, 2014 $100 Million Term Loan Facility $ $ $253 Million Term Loan Facility $44 Million Term Loan Facility 2015 Revolving Credit Facility — $98 Million Credit Facility — $148 Million Credit Facility $22 Million Term Loan Facility 2014 Term Loan Facilities Total deferred financing costs Less: accumulated amortization Total $ $ Amortization expense for deferred financing costs for the Successor Company for the year ended December 31, 2015 and the period from July 9 to December 31, 2014 was $2,379 and $845, respectively. Amortization expense for deferred financing costs for the Predecessor Company for the period from January 1 to July 9, 2014 and for the year ended December 31, 2013 was $4,461 and $9,116, respectively. This amortization expense is recorded as a component of Interest expense in the Consolidated Statements of Operations. On the Effective Date, the Company eliminated the net unamortized deferred financing costs for the 2007 Credit Facility and the 2010 Notes and classified the changes as Restructuring items, net in the Consolidated Statements of Operation for the Predecessor Company as both the 2007 Credit Facility and 2010 Notes were terminated as part of the Plan. Additionally, the unamortized deferred financing costs for the $100 Million Term Loan Facility and the $253 Million Term Loan Facility prior to their Restatements and Amendment pursuant to the Plan were eliminated and the Company classified the changes to Restructuring items, net in the Consolidated Statements of Operation for the Predecessor Company. Fees and legal expenses for securing the Amended and Restated $100 Million and $253 Million Term Loan Facilities have been capitalized as deferred financing costs and will be amortized over the extended term of the respective loans. Baltic Trading entered into the $148 Million Credit Facility on December 31, 2014, which was used to refinance the outstanding indebtedness under the 2010 Credit Facility. As such, on December 31, 2014, the net unamortized deferred financing costs associated with the 2010 Baltic Trading Credit Facility are going to be amortized over the life of the $148 Million Credit Facility. (Refer to Note 9 — Debt) |
FIXED ASSETS
FIXED ASSETS | 12 Months Ended |
Dec. 31, 2015 | |
FIXED ASSETS | |
FIXED ASSETS | 16 - FIXED ASSETS Fixed assets consist of the following: Successor Successor December 31, 2015 December 31, 2014 Fixed assets, at cost: Vessel equipment $ $ Furniture and fixtures Computer equipment Total costs Less: accumulated depreciation and amortization Total $ $ Refer to Note 3 — Cash Flow Information for information regarding the reclassification from fixed assets to vessels assets by the Predecessor Company during the period from January 1 to July 9, 2014. |
ACCOUNTS PAYABLE AND ACCRUED EX
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2015 | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 17 — ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consist of the following : Successor Successor December 31, 2015 December 31, 2014 Accounts payable $ $ Accrued general and administrative expenses Accrued vessel operating expenses Total $ $ |
LIABILITIES SUBJECT TO COMPROMI
LIABILITIES SUBJECT TO COMPROMISE | 12 Months Ended |
Dec. 31, 2015 | |
LIABILITIES SUBJECT TO COMPROMISE | |
LIABILITIES SUBJECT TO COMPROMISE | 18 — LIABILITIES SUBJECT TO COMPROMISE As a result of the filing of the Chapter 11 Cases on April 21, 2014, the payment of pre-petition indebtedness is subject to compromise or other treatment under a plan of reorganization. Generally, actions to enforce or otherwise effect payment of pre-bankruptcy filing liabilities are stayed. Refer to the Financial Statement Presentation section of Note 1 — General Information for the allocation of the reinstatement of the Liabilities subject to compromise on the Effective Date. As of July 9, 2014, Liabilities subject to compromise for the Predecessor Company consisted of the following: Predecessor July 9, 2014 2007 Credit Facility $ $100 Million Term Loan Facility $253 Million Term Loan Facility Interest payable Terminated interest rate swap liability Convertible senior note payable Bond coupon interest payable Lease obligation Pre-petition accounts payable Total $ |
REVENUE FROM TIME CHARTERS
REVENUE FROM TIME CHARTERS | 12 Months Ended |
Dec. 31, 2015 | |
REVENUE FROM TIME CHARTERS | |
REVENUE FROM TIME CHARTERS | 19 — REVENUE FROM TIME CHARTERS Total voyage revenue includes revenue earned on time charters, including revenue earned in vessel pools and spot market-related time charters, as well as the sale of bunkers consumed during short-term time charters. For the year ended December 31, 2015 and for the period from July 9 to December 31, 2014, the Successor Company earned $150,784 and $98,817 of voyage revenue, respectively. For the period from January 1 to July 9, 2014 and for the year ended December 31, 2013, the Predecessor Company earned $118,759 and $224,179 of voyage revenue, respectively. There was no profit sharing revenue earned during the years ended December 31, 2015, 2014 and 2013. Future minimum time charter revenue, based on vessels committed to noncancelable time charter contracts as of February 23, 2016, is expected to be $6,151 during 2016, assuming off-hire due to any scheduled drydocking and that no additional off-hire time is incurred. For drydockings, the Company assumes twenty days of offhire. Future minimum revenue excludes revenue earned for the vessels currently in pool arrangements and vessels that are currently on or will be on spot market-related time charters, as spot rates cannot be estimated, as well as profit sharing revenue. |
REORGANIZATION ITEMS, NET
REORGANIZATION ITEMS, NET | 12 Months Ended |
Dec. 31, 2015 | |
REORGANIZATION ITEMS, NET | |
REORGANIZATION ITEMS, NET | 20 — REORGANIZATION ITEMS, NET “Reorganization items, net” represents amounts incurred and recovered subsequent to the bankruptcy filing as a direct result of the filing of the Chapter 11 Cases. See Note 25 for details associated with the restatement of the previously reported components of Reorganization items, net. Reorganization items, net (as restated) are comprised of the following: Successor Predecessor Year Ended December 31, 2015 Period from July 9 to December 31, 2014 Period from January 1 to July 9, 2014 (As Reported) Period from January 1 to July 9, 2014 Adjustment (c) Period from January 1 to July 9, 2014 (As Restated) Professional fees incurred $ $ $ $ — $ Trustee fees incurred — Total reorganization fees $ $ $ $ — $ Gain on settlement of liabilities subject to compromise $ — $ — $ ) $ $ — Net gain on debt and equity discharge and issuance — — ) — Gain on settlement of liabilities subject to compromise in exchange for equity issuance, net (a) — — — ) ) Fresh-start reporting adjustments (b) — — ) Total fresh-start adjustment $ — $ — $ ) $ $ Total reorganization items, net $ $ $ ) $ $ (a) For determination of this amount see footnote (a), subnote 1. in Note 1 under the table “Fresh-Start Adjustments.” (b) For determination of this amount see footnote (c) in Note 1 under the table “Fresh-Start Adjustments.” (c) See Note 25 — Restatement of Consolidated Financial Statements of the Predecessor Company. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2015 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 21 — COMMITMENTS AND CONTINGENCIES In September 2005, the Company entered into a 15-year lease for office space in New York, New York for which there was a free rental period from September 1, 2005 to July 31, 2006. On January 6, 2012, the Company ceased the use of this space. During the period from January 1 to July 9, 2014 and during the year ended December 31, 2013, the Predecessor Company recorded net rent expense of ($41) and $1,264, respectively, representing the adjustment to and the present value of the Company’s estimated remaining rent expense for the duration of the lease after taking into account estimated future sublease income based on the sublease agreement entered into effective November 1, 2013 and deferred rent on the facility. Pursuant to the Plan that was approved by the Bankruptcy Court, the Debtors rejected the lease agreement on the Effective Date and the Company believes that it will owe the lessor the remaining liability. Effective April 4, 2011, the Company entered into a seven-year sub-sublease agreement for additional office space in New York, New York. The term of the sub-sublease commenced June 1, 2011, with a free base rental period until October 31, 2011. Following the expiration of the free base rental period, the monthly base rental payments are $82 per month until May 31, 2015 and thereafter will be $90 per month until the end of the seven-year term. Pursuant to the sub-sublease agreement, the sublessor was obligated to contribute $472 toward the cost of the Company’s alterations to the sub-subleased office space. The Company has also entered into a direct lease with the over-landlord of such office space that commences immediately upon the expiration of such sub-sublease agreements, for a term covering the period from May 1, 2018 to September 30, 2025; the direct lease provides for a free base rental period from May 1, 2018 to September 30, 2018. Following the expiration of the free base rental period, the monthly base rental payments will be $186 per month from October 1, 2018 to April 30, 2023 and $204 per month from May 1, 2023 to September 30, 2025. For accounting purposes, the sub-sublease agreement and direct lease agreement with the landlord constitutes one lease agreement. As a result of the straight-line rent calculation generated by the free rent period and the tenant work credit, the monthly straight-line rental expense for the term of the entire lease from June 1, 2011 to September 30, 2025 was $130 for the Predecessor Company. On the Effective Date, a revised straight-line rent calculation was completed as part of fresh-start reporting. The revised monthly straight-line rental expense for the remaining term of the lease from the Effective Date to September 30, 2025 is $150. The Successor Company had a long-term lease obligation at December 31, 2015 and 2014 of $1,149 and $390, respectively. Rent expense pertaining to this lease recorded by the Successor Company for the year ended December 31, 2015 and the period from July 9 to December 31, 2014 was $1,808 and $865, respectively. Rent expense pertaining to this lease recorded by the Predecessor Company for the period from January 1 to July 9, 2014 and for the year ended December 31, 2013 was $813 and $1,558, respectively. Future minimum rental payments on the above lease for the next five years and thereafter are as follows: $1,076 annually for 2016 and 2017, $916 for 2018, $2,230 annually for 2019 and 2020 and a total of $11,130 for the remaining term of the lease. During the beginning of 2009, the Genco Cavalier, a 2007-built Supramax vessel, was on charter to Samsun when Samsun filed for the equivalent of bankruptcy protection in South Korea, otherwise referred to as a rehabilitation application. On February 5, 2010, the rehabilitation plan submitted by Samsun was approved by the South Korean courts. As part of the rehabilitation process, the Company’s claim of $17,212 will be settled in the following manner; 34.0%, or $5,852, will be paid in cash in annual installments on December 30th of each year from 2010 through 2019 ranging from 8.0% to 17.0%; the remaining 66.0%, or $11,360, was converted to Samsun shares at a specified value per share. During the period from July 9 to December 31, 2014, the Successor Company received $296 and $234 from Samsun for the remainder of the payment that was due on December 30, 2012, including interest, and 50% of the payment that was due on December 30, 2013, respectively. This resulted in total Other operating income recorded by the Successor Company during the period from July 9 to December 31, 2014 of $530. During the years ended December 31, 2015 and 2013 and the period from January 1 to July 9, 2014, there were no payments remitted by Samsun. On July 3, 2015, Samsun filed for rehabilitation proceedings for the second time with the South Korean courts due to financial distress. The rehabilitation plan is still under review by the South Korean courts, and a proposed rehabilitation plan has not yet been implemented. A meeting for resolution on the proposed rehabilitation plan is expected to be held on March 11, 2016. During January 2011, the Genco Success, a 1997-built Handymax vessel, was on charter to KLC when KLC filed for a rehabilitation application with South Korean courts. The original rehabilitation plan submitted by KLC was approved by the South Korean courts on July 3, 2012. However, on October 4, 2013, a final revised rehabilitation plan was approved by the South Korean courts which resulted in a settlement payment to be paid to the Company of $21 in addition to 3,355 shares of stock of KLC. The Company valued the shares of KLC stock using the fair value on the date that the shares were received which resulted in Other operating income of $100. These shares of KLC stock have been classified as AFS, refer to Note 6 — Investments for further information. As such, during the year ended December 31, 2013, $121 has been recorded by the Predecessor Company as Other operating income. During the year ended December 31, 2015 and the period from January 1 to July 9, 2014, there was no Other operating income recorded by the Successor Company and Predecessor Company, respectively. |
SAVINGS PLAN
SAVINGS PLAN | 12 Months Ended |
Dec. 31, 2015 | |
SAVINGS PLAN | |
SAVINGS PLAN | 22 — SAVINGS PLAN In August 2005, the Company established a 401(k) plan that is available to full-time employees who meet the plan’s eligibility requirements. This 401(k) plan is a defined contribution plan, which permits employees to make contributions up to maximum percentage and dollar limits allowable by IRS Code Sections 401(k), 402(g), 404 and 415 with the Company matching up to the first six percent of each employee’s salary on a dollar-for-dollar basis. Effective January 1, 2015, the Company increased the match to $1.17 for each dollar contributed up to the first six percent of each employee’s salary. The matching contribution vests immediately. For the year ended December 31, 2015 and for period from July 9 to December 31, 2014, the Successor Company’s matching contributions to this plan were $305 and $181, respectively. For the period from January 1 to July 9, 2014 and the year ended December 31, 2013, the Predecessor Company’s matching contributions to this plan were $131 and $301, respectively. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2015 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | 23 — STOCK-BASED COMPENSATION Genco Shipping & Trading — Predecessor Company On July 12, 2005, the Company’s Board of Directors approved the Genco Shipping and Trading Limited 2005 Equity Incentive Plan (the “2005 GS&T Plan”). The aggregate number of shares of common stock that were available for award under the 2005 GS&T Plan was 2,000,000 shares. Additionally, on May 17, 2012, at the Company’s 2012 Annual Meeting of Shareholders, the Company’s shareholders approved the Genco Shipping and Trading Limited 2012 Equity Incentive Plan (the “2012 GS&T Plan”). The aggregate number of shares of common stock that were available for award under the 2012 GS&T Plan was 3,000,000 shares. Under these plans, the Company’s Board of Directors, the compensation committee, or another designated committee of the Board of Directors could grant a variety of stock-based incentive awards to employees, directors and consultants who the compensation committee (or other committee or the Board of Directors) believes are key to the Company’s success. Awards may consist of incentive stock options, nonqualified stock options, stock appreciation rights, dividend equivalent rights, nonvested stock, unrestricted stock and performance shares. Under the Plan, on the Effective Date, any unvested shares under the 2005 and 2012 GS&T Plans were deemed vested automatically and Equity Warrants were issued. Refer to “Successor Company Equity Warrant Agreement” section in Note 1 — General Information for further information. The vesting of these shares is included in the $2,403 of nonvested stock amortization expense recorded by the Predecessor Company during the period from January 1 to July 9, 2014 and is included in the table below. Under the 2005 and 2012 GS&T Plans, grants of nonvested common stock to executives and employees vested ratably on each of the four anniversaries of the determined vesting date. Grants of nonvested common stock issued under the 2005 and 2012 GS&T Plans to directors vested the earlier of the first anniversary of the grant date or the date of the next annual shareholders’ meeting, which were typically held during May. Grants of nonvested common stock issued under the 2005 and 2012 GS&T Plans to the Company’s Chairman, Peter C. Georgiopoulos, that were not granted as part of grants made to all directors, excluding the grants made on December 13, 2012, December 28, 2011 and December 21, 2010, vested ratably on each of the ten anniversaries of the vesting date. The table below summarizes the Predecessor Company’s nonvested stock awards for the period from January 1, 2013 to July 9, 2014 under the 2005 and 2012 GS&T Plans: Predecessor Period from January 1 to July 9, 2014 Number of Shares Weighted Average Grant Date Price Outstanding at January 1, 2014 - Predecessor $ Granted — — Vested ) Forfeited — — Outstanding at July 9, 2014 - Predecessor — $ — Predecessor Year Ended December 31, 2013 Number of Shares Weighted Average Grant Date Price Outstanding at January 1 - Predecessor $ Granted Vested ) Forfeited ) Outstanding at December 31 - Predecessor $ The total fair value of shares that vested under the 2005 and 2012 GS&T Plans during the period from January 1 to July 9, 2014 and during the year ended December 31, 2013 was $691 and $943, respectively. The total fair value is calculated as the number of shares vested during the period multiplied by the fair value on the vesting date. For the period from January 1 to July 9, 2014 and for the year ended December 31, 2013, the Predecessor Company recognized nonvested stock amortization expense for the 2005 and 2012 GS&T Plans, which is included in general, administrative and management fees, as follows: Predecessor Period from January 1 to July 9, Year Ended December 31, 2014 2013 General, administrative and management fees $ $ Genco Shipping & Trading — Successor Company 2014 Management Incentive Plan On the Effective Date, pursuant to the Chapter 11 Plan, the Company adopted the MIP (as defined in Note 1 — General Information). An aggregate of 9,668,061 shares of Common Stock were available for award under the MIP, which were awarded in the form of restricted stock grants and awards of three tiers of MIP Warrants with staggered strike prices based on increasing equity values. The number of shares of common stock available under the Plan represented approximately 1.8% of the shares of post-emergence Common Stock outstanding as of the Effective Date on a fully-diluted basis. Awards under the MIP were available to eligible employees, non-employee directors and/or officers of the Company and its subsidiaries (collectively, “Eligible Individuals”). Under the MIP, a committee appointed by the Board from time to time (or, in the absence of such a committee, the Board) (in either case, the “Plan Committee”) may grant a variety of stock-based incentive awards, as the Plan Committee deems appropriate, to Eligible Individuals. The MIP Warrants are exercisable on a cashless basis and contain customary anti-dilution protection in the event of any stock split, reverse stock split, stock dividend, reclassification, dividend or other distributions (including, but not limited to, cash dividends), or business combination transaction. On August 7, 2014, pursuant to the MIP, certain individuals were granted MIP Warrants whereby each warrant can be converted on a cashless basis for the amount in excess of the respective strike price. The MIP Warrants were issued in three tranches, which are exercisable for 2,380,664, 2,467,009, and 3,709,788 shares and have exercise prices of $25.91 (the “$25.91 Warrants”), $28.73 (the “$28.73 Warrants”) and $34.19 (the “$34.19 Warrants”), respectively. The fair value of each warrant upon emergence from bankruptcy was $7.22 for the $25.91 Warrants, $6.63 for the $28.73 Warrants and $5.63 for the $34.19 Warrants. The warrant values were based upon a calculation using the Black-Scholes-Merton option pricing formula. This model uses inputs such as the underlying price of the shares issued when the warrant is exercised, volatility, cost of capital interest rate and expected life of the instrument. The Company has determined that the warrants should be classified within Level 3 of the fair value hierarchy by evaluating each input for the Black-Scholes-Merton option pricing formula against the fair value hierarchy criteria and using the lowest level of input as the basis for the fair value classification. The Black-Scholes-Merton option pricing formula used a volatility of 43.91% (representing the six-year volatility of a peer group), a risk-free interest rate of 1.85% and a dividend rate of 0%. The aggregate fair value of these awards upon emergence from bankruptcy was $54,436. The warrants vest 33.33% on each of the first three anniversaries of the grant date, with accelerated vesting upon a change in control of the Company. For the year ended December 31, 2015 and the period from July 9 to December 31, 2014, the Successor Company recognized amortization expense of the fair value of these warrants, which is included in General, administrative and management fees, as follows: Successor Year Ended December 31, Period from July 9 to December 31, 2015 2014 General, administrative and management fees $ $ Amortization of the unamortized stock-based compensation balance of $15,105 as of December 31, 2015 is expected to be expensed $11,496 and $3,609 during the years ending December 31, 2016 and 2017, respectively. The following table summarizes all the warrant activity for the year ended December 31, 2015 and for the period from July 9, 2014 to December 31, 2014: Number of Warrants Weighted Average Exercise Price Weighted Average Fair Value Outstanding at July 9, 2014 - Successor — $ — $ — Granted Exercisable — — — Exercised — — — Forfeited — — — Outstanding at December 31, 2014 - Successor $ $ Number of Warrants Weighted Average Exercise Price Weighted Average Fair Value Outstanding at January 1, 2015 - Successor $ $ Granted — — — Exercisable ) Exercised — — — Forfeited — — — Outstanding at December 31, 2015 - Successor $ $ The following table summarizes certain information about the warrants outstanding as of December 31, 2015: Warrants Outstanding, December 31, 2015 Warrants Exercisable, December 31, 2015 Weighted Weighted Weighted Average Weighted Average Weighted Average Remaining Average Remaining Average Number of Exercise Contractual Number of Exercise Contractual Exercise Price Warrants Price Life Warrants Price Life $ $ $ On August 6, 2014, the Successor Company’s Board of Directors approved the 2014 Equity Incentive Plan for an aggregate of 250,000,000, which included the shares issued for the Successor Company pursuant to the Plan. The nonvested stock awards granted under the 2014 MIP Plan will vest ratably on each of the three anniversaries of the determined vesting date of August 7, 2014. The table below summarizes the Successor Company’s nonvested stock awards for the year ended December 31, 2015 and the period from July 9 to December 31, 2014 that were issued under the 2014 MIP Plan: Number of Shares Weighted Average Grant Date Price Outstanding at July 9, 2014 - Successor — $ — Granted Vested — — Forfeited — — Outstanding at December 31, 2014 - Successor $ Number of Shares Weighted Average Grant Date Price Outstanding at January 1, 2015 - Successor $ Granted — — Vested ) Forfeited — — Outstanding at December 31, 2015 - Successor $ The total fair value of MIP restricted shares that vested under the 2014 MIP Plan during the year ended December 31, 2015 and the period from July 9 to December 31, 2014 for the Successor Company was $2,662 and $0, respectively. The total fair value is calculated as the number of shares vested during the period multiplied by the fair value on the vesting date. For the year ended December 31, 2015 and the period from July 9 to December 31, 2014, the Successor Company recognized nonvested stock amortization expense for the 2014 MIP Plan restricted shares, which is included in General, administrative and management fees, as follows: Successor Year Ended December 31, 2015 Period from July 9 to December 31, 2014 General, administrative and management fees $ $ The Company is amortizing these grants over the applicable vesting periods, net of anticipated forfeitures. As of December 31, 2015, unrecognized compensation cost of $6,163 related to nonvested stock will be recognized over a weighted-average period of 1.60 years. Restricted Stock Units The Successor Company has issued restricted stock units (“RSUs”) to certain members of the Board of Directors, which represent the right to receive a share of common stock, or in the sole discretion of the Company’s Compensation Committee, the value of a share of common stock on the date that the RSU vests. The RSUs generally vest on the date of the Company’s annual shareholders meeting following the date of the grant. On July 13, 2015 and July 29, 2015, the Company issued 16,188 and 58,215 RSUs, respectively, to members of the Company’s Board of Directors. The 16,188 RSUs vested on July 17, 2015. As of December 31, 2015, no shares of the Company’s common stock were outstanding in respect of the RSUs. Such shares will only be issued in respect of vested RSUs when the director’s service with the Company as a director terminates. The RSUs that have been issued to certain members of the Board of Directors generally vest on the date of the annual shareholders meeting of the Company following the date of the grant. The table below summarized the Successor Company’s RSUs for the year ended December 31, 2015: Number of RSUs Weighted Average Grant Date Price Outstanding at January 1, 2015 - Successor — $ — Granted Vested ) Forfeited — — Outstanding at December 31, 2015 - Successor $ The total fair value of the RSUs that vested during the year ended December 31, 2015 for the Successor Company was $116. There were no RSUs that vested during the period from July 9 to December 31, 2014 for the Successor Company. The total fair value is calculated as the number of shares vested during the period multiplied by the fair value on the vesting date. On February 17, 2016, the vesting of 23,286 of outstanding RSUs were accelerated upon the resignation of two members on the Company’s Board of Directors. The following table summarizes certain information of the RSUs unvested and vested as of December 31, 2015: Unvested RSUs December 31, 2015 Vested RSUs December 31, 2015 Weighted Weighted Average Weighted Number of RSUs Average Grant Date Price Remaining Contractual Life Number of RSUs Average Grant Date Price $ $ The Company is amortizing these grants over the applicable vesting periods, net of anticipated forfeitures. As of December 31, 2015, unrecognized compensation cost of $193 related to RSUs will be recognized over a weighted-average period of 0.37 years. For the year ended December 31, 2015 and the period from July 9 to September 30, 2014, the Successor Company recognized nonvested stock amortization expense for the RSUs, which is included in General, administrative and management fees as follows: Successor Year Ended December 31, 2015 Period from July 9 to December 31, 2014 General, administrative and management fees $ $ — Baltic Trading Limited On March 3, 2010, Baltic Trading’s Board of Directors approved the Baltic Trading Limited 2010 Equity Incentive Plan (the “Baltic Trading Plan”). On March 13, 2014, Baltic Trading’s Board of Directors approved an amendment to the Baltic Trading Plan that increased the aggregate number of shares of common stock available for awards from 2,000,000 to 6,000,000 shares. Additionally, on April 9, 2014, at Baltic Trading’s 2014 Annual Meeting of Shareholders, Baltic Trading’s shareholders approved the amendment to the Baltic Trading Plan. Under the Baltic Trading Plan, Baltic Trading’s Board of Directors, the compensation committee, or another designated committee of the Board of Directors may grant a variety of stock-based incentive awards to officers, directors, and executive, managerial, administrative and professional employees of and consultants to Baltic Trading or the Company whom the compensation committee (or other committee of the Board of Directors) believes are key to Baltic Trading’s success. Awards may consist of restricted stock, restricted stock units, stock options, stock appreciation rights and other stock or cash-based awards. When the Merger was completed on July 17, 2015, the 1,941,844 nonvested shares issued under the Baltic Trading Plan vested automatically and received the same consideration in the Merger as holders of Baltic Trading’s common stock. Refer to Note 1 — General Information for further information regarding the Merger. The vesting of these shares is included in the $5,273 of expense recorded during the year ended December 31, 2015. Grants of restricted stock that were issued to Peter C. Georgiopoulos, Chairman of the Board of Baltic Trading, and John Wobensmith, President and Chief Financial Officer of Baltic Trading, made in connection with Baltic Trading’s IPO vested ratably on each of the first four anniversaries of March 15, 2010. Grants of restricted common stock to Baltic Trading’s directors made following Baltic Trading’s IPO (which exclude the foregoing grant to Mr. Georgiopoulos) vested the earlier of the first anniversary of the grant date or the date of Baltic Trading’s next annual shareholders’ meeting. Grants of restricted stock made to executives and the Chairman of the Board not in connection with the Company’s IPO vested ratably on each of the first four anniversaries of the determined vesting date. The following table presents a summary of Baltic Trading’s nonvested stock awards for the three years ended December 31, 2015 under the Baltic Trading Plan: Year Ended December 31, 2015 2014 2013 Number of Baltic Trading Common Shares Weighted Average Grant Date Price Number of Baltic Trading Common Shares Weighted Average Grant Date Price Number of Baltic Trading Common Shares Weighted Average Grant Date Price Outstanding at January 1 $ $ $ Granted — — Vested ) ) ) Forfeited — — — — — — Outstanding at December 31 — $ — $ $ The total fair value of shares that vested under the Baltic Trading Plan during the year ended December 31, 2015 and the period from July 9 to December 31, 2014 for the Successor Company was $2,913 and $1,168, respectively. The total fair value of shares that vested under the Baltic Trading Plan during the period from January 1 to July 9, 2014 and during the year ended December 31, 2013 was $1,143 and $1,194, respectively. The total fair value is calculated as the number of shares vested during the period multiplied by the fair value on the vesting date. The Successor Company and the Predecessor Company recognized nonvested stock amortization expense for the Baltic Trading Plan, which is included in General, administrative and management fees, as follows: Successor Predecessor Year Period from Period from Year Ended July 9 to January 1 to Ended December 31, December 31, July 9, December 31, 2015 2014 2014 2013 General, administrative and management fees $ $ $ $ |
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS | 12 Months Ended |
Dec. 31, 2015 | |
LEGAL PROCEEDINGS | |
LEGAL PROCEEDINGS | 24 - LEGAL PROCEEDINGS Refer to Note 1 — General Information for information concerning the Chapter 11 Cases. On March 28, 2014, the Genco Auvergne was arrested due to a disputed claim with the charterer of one of the Company’s other vessels, namely the Genco Ardennes. In order for the Company to release the Genco Auvergne from its arrest, the Company entered into a cash collateralized $900 bank guarantee with Skandinaviska Enskilda Banken AB (the “SEB Bank Guarantee”) on April 3, 2014. The vessel has since been released from its arrest and the bank guarantee was released from escrow to the Company on June 22, 2015 after the arbitration related to this case was completed. The SEB Bank Guarantee resulted in additional indebtedness by the Company. As the Company was in default under the covenants of its 2007 Credit Facility due to the default on a scheduled debt amortization payment due on March 31, 2014, on April 3, 2014 the Company received a consent from the lenders under the 2007 Credit Facility to incur this additional indebtedness. Also, under the $253 Million Term Loan Facility for which the Genco Auvergne is collateralized, the Company may not incur additional indebtedness related to its collateralized vessels under this facility. The Company also received a consent from the lenders under the $253 Million Term Loan Facility on April 3, 2014 in order to enter the SEB Bank Guarantee. In April 2015, six class action complaints were filed in the Supreme Court of the State of New York, County of New York, styled Erol Sarikaya v. Peter C. Georgiopoulos et al. , Index No. 651244/2015, filed on April 15, 2015, voluntarily dismissed, and refiled as Joshua Bourne v. Peter C. Georgiopoulos et al. , Index No. 651429/2015, filed on April 28, 2015, Justin Wilson v. Baltic Trading Ltd., et al. , Index No. 651241/2015, filed on April 15, 2015, Sangeetha Ganesan v. Baltic Trading Limited et al. , Index No. 651279/2015, filed on April 17, 2015, Edward Braunstein v. Peter C. Georgiopoulos et al. , Index No. 651368/2015, filed on April 23, 2015, Larry Williams v. Baltic Trading Ltd., et al. , Index No. 651371/2015, filed on April 23, 2015, and Larry Goldstein and Bernhard Stomporowski v. John C. Wobensmith et al., Index No. 651407/2015, filed on April 27, 2015. All six complaints purport to be brought by and on behalf of the Baltic Trading’s shareholders. The plaintiff in each action alleges the proposed merger does not fairly compensate Baltic Trading’s shareholders and undervalues Baltic Trading. Each lawsuit names as defendants some or all of the Company, Baltic Trading, the individual members of Baltic Trading’s board, the Company’s and Baltic Trading’s President, and the Company’s merger subsidiary. The claims generally allege (i) breaches of fiduciary duties of good faith, due care, disclosure to shareholders, and loyalty, including for failing to maximize shareholder value, and (ii) aiding and abetting those breaches. Among other relief, the complaints seek an injunction against the merger, declaratory judgments that the individual defendants breached fiduciary duties, rescission of the merger agreement, and unspecified damages. On May 26, 2015, the six above described actions were consolidated under the caption In Re Baltic Trading Ltd. Stockholder Litigation , Index No. 651241/2015, and a consolidated class action complaint was filed on June 10, 2015 (the “Consolidated Complaint”). On June 30, 2015, Defendants moved to dismiss the Consolidated Complaint in its entirety. Plaintiffs subsequently served an Amended Consolidated Complaint, and Defendants directed their motion to dismiss to that amended complaint. The motion to dismiss is pending. On July 9, 2015, plaintiffs in that action moved to enjoin the merger vote, scheduled to take place on July 17, 2015. The motion was thereafter fully briefed and argued on July 15, 2015. The motion to enjoin the vote was denied. Plaintiffs sought an emergency injunction and temporary restraining order from the New York State Appellate Division, First Department the following day, on July 16, 2015. The Appellate Division denied the request, and the vote, and subsequent merger, proceeded as scheduled on July 17, 2015. Plaintiffs thereafter withdrew the appeal. Separately, on or around May 12, 2015, a complaint was filed in the United States District Court for the Southern District of New York, styled Todd J. Biederman v. Baltic Trading Limited et al. , 15-cv-3711 (RJS), seeking relief pursuant to Sections 14(a) and 20(a) of the Exchange Act and also alleging breaches of fiduciary duties and aiding and abetting those breaches. That complaint alleges facts and seeks relief similar to that in the actions in the New York State Supreme Court, in addition to claims regarding the adequacy of the preliminary joint proxy statement/prospectus and Form S-4 disclosures. By order dated December 29, 2015, the case was dismissed without prejudice for failure to prosecute. Based on currently available information, the Company cannot reasonably estimate the loss, if any, in the event of an unfavorable outcome in any of these matters. However, the Company does not believe that it is probable that the resolution of these matters will have a material financial reporting consequence. From time to time, the Company may be subject to legal proceedings and claims in the ordinary course of its business, principally personal injury and property casualty claims. Such claims, even if lacking merit, could result in the expenditure of significant financial and managerial resources. The Company is not aware of any legal proceedings or claims that it believes will have, individually or in the aggregate, a material effect on the Company, its financial condition, results of operations or cash flows besides those noted above. |
RESTATEMENT OF CONSOLIDATED FIN
RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS OF THE PREDECESSOR COMPANY | 12 Months Ended |
Dec. 31, 2015 | |
RESTATEMENT OF CONSOLIDATING FINANCIAL STATEMENTS OF THE PREDECESSOR COMPANY | |
RESTATEMENT OF CONSOLIDATING FINANCIAL STATEMENTS OF THE COMPANY | 26 — RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS OF THE SUCCESSOR COMPANY Subsequent to the issuance of the Company’s 2014 consolidated financial statements on March 2, 2015, the Company became aware of an error in its allocation of goodwill impairment to the noncontrolling interest recognized in December 2014 by the Company associated with its consolidated subsidiary Baltic Trading (refer to Note 4 — Goodwill Impairment). As a result of this error, amounts allocated to the Company’s noncontrolling interest in the Company’s previously reported Consolidated Statement of Operations of the Successor Company for the period from July 9, 2014 to December 31, 2014 and the Company’s previously reported Consolidated Balance Sheet of the Successor Company as of December 31, 2014 were incorrect. The error affected the Company’s previously reported Net loss allocable to GS&T and the noncontrolling interest and Net loss per share allocable to GS&T on the Company’s Consolidated Statement of Operations of the Successor Company for the period from July 9, 2014 to December 31, 2014, as well as the Company’s previously reported allocation of shareholders’ equity to the shareholders of the Company and the noncontrolling interest on the Company’s Consolidated Balance Sheet of the Successor Company as of December 31, 2014. The error did not impact the Company’s previously reported consolidated revenues, operating expenses, net loss or cash flows for the Successor Company for the period from July 9, 2014 to December 31, 2014, or the Company’s previously reported consolidated assets, liabilities or total equity of the Successor Company as of December 31, 2014. The Company determined its previously issued consolidated financial statements for the year ended December 31, 2014 should be restated to correct for this error. The effect of correcting for this error resulted in: 1) a decrease in previously reported net loss attributable to GS&T and an increase in previously reported Net loss attributable to noncontrolling interest for the period from July 9, 2014 to December 31, 2014 by the same amount; and 2) an increase in GS&T’s equity attributable to its shareholders and a decrease in the Noncontrolling interest in the Consolidated Balance Sheet as of December 31, 2014 by the same amount. The effect of correcting these errors is summarized as follows: · For the period from July 9, 2014 to December 31, 2014, the previously reported Net loss attributable to GS&T decreased by $21,823 to $182,294 from $204,117 as a result of the restatement. This also resulted in a change in Net loss per share from $3.38 to $3.02 as a result of the restatement. After the restatement, the Net loss attributable to noncontrolling interest for the period from July 9, 2014 to December 31, 2014 increased by $21,823 to $31,064 from $9,241. The Company’s consolidated Net loss for the period from July 9, 2014 to December 31, 2014 was unchanged at $213,358. · As of December 31, 2014, the previously reported equity recorded by GS&T attributable to its shareholders increased by $21,823 to $1,044,201 from $1,022,378 as a result of the restatement. After restatement, as of December 31, 2014, the noncontrolling interest’s equity decreased by $21,823 to $248,573 from $270,396. The Company’s consolidated total equity in its Consolidated Balance Sheet as of December 31, 2014 was unchanged at $1,292,774. |
Predecessor | |
RESTATEMENT OF CONSOLIDATING FINANCIAL STATEMENTS OF THE PREDECESSOR COMPANY | |
RESTATEMENT OF CONSOLIDATING FINANCIAL STATEMENTS OF THE COMPANY | 25 — RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS OF THE PREDECESSOR COMPANY Subsequent to the issuance of the Company’s 2014 consolidated financial statements on March 2, 2015, the Company became aware of errors in its determination of certain previously reported amounts in its Predecessor period financial reporting for the period from January 1, 2014 to July 9, 2014 related to its application of fresh-start accounting under ASC 852. These errors were related to the items included in the determination of the “Reorganization items, net” account balance on the Company’s Consolidated Statement of Operations of the Predecessor for the period from January 1, 2014 to July 9, 2014, which affected the Company’s previously reported Net income and Net income per share, Net income attributable to Genco Shipping & Trading Limited and Net loss attributable to noncontrolling interest for this period. The Company determined its previously issued consolidated financial statements for the Predecessor Company for the period ended July 9, 2014 should be restated to correct for these errors. The effect of correcting for these errors resulted in (1) changing the Company’s previously reported gain on Reorganization items, net to a loss, (2) changing the Company’s previously reported Net income and Net income per share to a Net loss and Net loss per share, respectively, (3) changing the Company’s previously reported Net income attributable to Genco Shipping & Trading Limited to a Net loss attributable to Genco Shipping & Trading Limited, and increasing the Company’s previously reported Net loss attributable to noncontrolling interest for the period from January 1, 2014 to July 9, 2014. The effect of correcting these errors is summarized in the following tables: Consolidated Statement of Operations (U.S. Dollars in Thousands, Except for Earnings Per Share and Share Data) Predecessor Predecessor Period from January 1 to July 9, 2014 As Reported Adjustment Period from January 1 to July 9, 2014 As Restated Loss before reorganization items, net $ ) — $ ) Reorganization items, net )(a) ) (Loss) income before income taxes ) ) Income tax expense ) — ) Net (loss) income ) ) Less: Net loss attributable to noncontrolling interest ) )(b) ) Net (loss) income attributable to Genco Shipping & Trading Limited $ $ ) $ ) Net (loss) income per share-basic $ N/A $ ) Net (loss) income per share-diluted $ N/A $ ) Weighted average common shares outstanding-basic N/A Weighted average common shares outstanding-diluted N/A Dividends declared per share $ — N/A $ — (a) The adjustment is the result of errors in the Company’s prior accounting for the following transactions associated with the application of fresh—start accounting: Adjustment Discharge of Predecessor equity <1> $ ) Issuance of Successor equity <2> ) Recording of goodwill in fresh-start accounting <3> Total $ ) <1> The accounting consequences related to the discharge of Predecessor equity were previously reported as a component in the computation of “Reorganization items, net”. The adjustment is to exclude the accounting consequences related to the discharge of Predecessor equity from the computation of “Reorganization items, net”. <2> The accounting consequences related to the issuance of Successor equity were previously excluded as a component in the computation of “Reorganization items, net”. The adjustment is to include from the accounting consequences related to the issuance of Successor equity in the computation of “Reorganization items, net”. <3> The accounting consequences related to the recognition of goodwill were previously excluded as a component in the computation of “Reorganization items, net”. The adjustment is to include the accounting consequences related to the establishment of goodwill in the computation of “Reorganization items, net”. (b) The adjustment is the result of errors in the Company’s prior accounting for the consequences to non-controlling interests of certain transactions associated with the application of fresh-start accounting. Consolidated Statement of Comprehensive Loss (U.S. Dollars in Thousands) Predecessor Predecessor Period from January 1 to July 9, 2014 As Reported Adjustment Period from January 1 to July 9, 2014 As Restated Net (loss) income $ $ ) ) Change in unrealized (loss) gain on investments ) — ) Unrealized gain on cash flow hedges, net — Other comprehensive (loss) income ) — ) Comprehensive (loss) income ) ) Less: Comprehensive loss attributable to noncontrolling interest ) ) ) Comprehensive (loss) income attributable to Genco Shipping & Trading Limited $ $ ) $ ) In addition, the effect of correcting for these errors resulted in the restatement of: · The previously reported components of Reorganization items, net — see Note 20; · The following previously reported financial information included in the column “Debt Discharge and Equity Issuance” in the table “Fresh-Start Adjustments” in Note 1: Debt Discharge and Equity Issuance (as reported) Adjustment Debt Discharge and Equity Issuance (a) (as restated) Assets Current assets: Cash and cash equivalents $ $ — $ Restricted cash — — — Due from charterers, net — — — Prepaid expenses and other current assets — — — Time charters acquired — — — Total current assets — Noncurrent assets: Vessels, net — — — Deposits on vessels — — — Deferred drydock, net — — — Deferred financing costs, net ) — ) Fixed assets, net — — — Other noncurrent assets — — — Restricted cash — — — Investments — — — Goodwill — — — Total noncurrent assets ) — ) Total assets $ $ — $ Liabilities and Equity Current liabilities not subject to compromise: Accounts payable and accrued expenses $ ) $ — $ ) Current portion of long-term debt — — — Deferred revenue — — — Time charters acquired — — — Total current liabilities not subject to compromise ) — ) Noncurrent liabilities not subject to compromise: Long-term lease obligations — — — Long-term debt — — — Total noncurrent liabilities not subject to compromises — — — Total liabilities subject to compromise ) — ) Total liabilities ) — ) Equity: Genco Shipping & Trading Limited shareholders’ equity: Predecessor Common stock ) — ) Predecessor Additional paid-in capital ) — ) Successor Common stock — Successor Additional paid-in capital — Accumulated other comprehensive income ) ) Retained (deficit) earnings ) Total Genco Shipping & Trading Limited shareholders’ equity ) Noncontrolling interest ) — Total equity — Total liabilities and equity $ $ — $ · The following previously reported financial information included in the column “Revaluation of Assets and Liabilities” in the table “Fresh-Start Adjustments” in Note 1: Revaluation of Assets and Liabilities (as reported) Adjustment Revaluation of Assets and Liabilities (as restated) Assets Current assets: Cash and cash equivalents $ — $ — $ — Restricted cash — — — Due from charterers, net — — — Prepaid expenses and other current assets ) — ) Time charters acquired — Total current assets — Noncurrent assets: Vessels, net ) — ) Deposits on vessels — Deferred drydock, net ) — ) Deferred financing costs, net — — — Fixed assets, net ) — ) Other noncurrent assets — — — Restricted cash — — — Investments — — — Goodwill — Total noncurrent assets ) — ) Total assets $ ) $ — $ ) Liabilities and Equity Current liabilities not subject to compromise: Accounts payable and accrued expenses $ — $ — $ — Current portion of long-term debt — — — Deferred revenue — — — Time charters acquired ) — ) Total current liabilities not subject to compromise ) — ) Noncurrent liabilities not subject to compromise: Long-term lease obligations ) — ) Long-term debt — — — Total noncurrent liabilities not subject to compromises ) — ) Total liabilities subject to compromise — — — Total liabilities ) — ) Equity: Genco Shipping & Trading Limited shareholders’ equity: — — — Predecessor Common stock — — — Predecessor Additional paid-in capital — — — Successor Common stock — — — Successor Additional paid-in capital — — — Accumulated other comprehensive income ) — Retained (deficit) earnings ) ) Total Genco Shipping & Trading Limited shareholders’ equity ) ) Noncontrolling interest — ) ) Total equity ) — ) Total liabilities and equity $ ) $ — $ ) |
RESTATEMENT OF CONSOLIDATING FI
RESTATEMENT OF CONSOLIDATING FINANCIAL STATEMENTS OF THE SUCCESSOR COMPANY | 12 Months Ended |
Dec. 31, 2015 | |
RESTATEMENT OF CONSOLIDATING FINANCIAL STATEMENTS OF THE SUCCESSOR COMPANY | |
RESTATEMENT OF CONSOLIDATING FINANCIAL STATEMENTS OF THE COMPANY | 26 — RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS OF THE SUCCESSOR COMPANY Subsequent to the issuance of the Company’s 2014 consolidated financial statements on March 2, 2015, the Company became aware of an error in its allocation of goodwill impairment to the noncontrolling interest recognized in December 2014 by the Company associated with its consolidated subsidiary Baltic Trading (refer to Note 4 — Goodwill Impairment). As a result of this error, amounts allocated to the Company’s noncontrolling interest in the Company’s previously reported Consolidated Statement of Operations of the Successor Company for the period from July 9, 2014 to December 31, 2014 and the Company’s previously reported Consolidated Balance Sheet of the Successor Company as of December 31, 2014 were incorrect. The error affected the Company’s previously reported Net loss allocable to GS&T and the noncontrolling interest and Net loss per share allocable to GS&T on the Company’s Consolidated Statement of Operations of the Successor Company for the period from July 9, 2014 to December 31, 2014, as well as the Company’s previously reported allocation of shareholders’ equity to the shareholders of the Company and the noncontrolling interest on the Company’s Consolidated Balance Sheet of the Successor Company as of December 31, 2014. The error did not impact the Company’s previously reported consolidated revenues, operating expenses, net loss or cash flows for the Successor Company for the period from July 9, 2014 to December 31, 2014, or the Company’s previously reported consolidated assets, liabilities or total equity of the Successor Company as of December 31, 2014. The Company determined its previously issued consolidated financial statements for the year ended December 31, 2014 should be restated to correct for this error. The effect of correcting for this error resulted in: 1) a decrease in previously reported net loss attributable to GS&T and an increase in previously reported Net loss attributable to noncontrolling interest for the period from July 9, 2014 to December 31, 2014 by the same amount; and 2) an increase in GS&T’s equity attributable to its shareholders and a decrease in the Noncontrolling interest in the Consolidated Balance Sheet as of December 31, 2014 by the same amount. The effect of correcting these errors is summarized as follows: · For the period from July 9, 2014 to December 31, 2014, the previously reported Net loss attributable to GS&T decreased by $21,823 to $182,294 from $204,117 as a result of the restatement. This also resulted in a change in Net loss per share from $3.38 to $3.02 as a result of the restatement. After the restatement, the Net loss attributable to noncontrolling interest for the period from July 9, 2014 to December 31, 2014 increased by $21,823 to $31,064 from $9,241. The Company’s consolidated Net loss for the period from July 9, 2014 to December 31, 2014 was unchanged at $213,358. · As of December 31, 2014, the previously reported equity recorded by GS&T attributable to its shareholders increased by $21,823 to $1,044,201 from $1,022,378 as a result of the restatement. After restatement, as of December 31, 2014, the noncontrolling interest’s equity decreased by $21,823 to $248,573 from $270,396. The Company’s consolidated total equity in its Consolidated Balance Sheet as of December 31, 2014 was unchanged at $1,292,774. |
UNAUDITED QUARTERLY RESULTS OF
UNAUDITED QUARTERLY RESULTS OF OPERATIONS | 12 Months Ended |
Dec. 31, 2015 | |
UNAUDITED QUARTERLY RESULTS OF OPERATIONS | |
UNAUDITED QUARTERLY RESULTS OF OPERATIONS | 27 — UNAUDITED QUARTERLY RESULTS OF OPERATIONS In the opinion of the Company’s management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation have been included on a quarterly basis. We have presented the unaudited quarterly results of operations separately for the Successor Company and the Predecessor Company. In the third quarter of 2015, the Successor Company had a material impairment of investment of $32,536. See Note 2 — Summary of Significant Accounting Policies for additional information. In the fourth quarter of 2014, the Successor Company had a material impairment of goodwill in the amount of $166,067. See Note 4 — Goodwill Impairment for additional information related to the impairment taken in the fourth quarter of 2014. 2015 Successor Quarter Ended (In thousands, except share and per share amounts) March 31 June 30 September 30 December 31 Voyage Revenues $ $ $ $ Operating loss ) ) ) ) Net loss ) ) ) ) Net loss attributable to noncontrolling interest ) ) ) — Net loss attributable to Genco Shipping & Trading Limited ) ) ) ) Net loss per share - basic (1) $ ) $ ) $ ) $ ) Net loss per share - diluted (1) $ ) $ ) $ ) $ ) Weighted average common shares outstanding - basic Weighted average common shares outstanding - diluted 2014 Predecessor Successor Period from Period from Quarter Ended Quarter Ended July 1 to July 9 July 9 to December 31 (In thousands, except share and per share amounts) March 31 June 30 (restated) September 30 (restated) Voyage Revenues $ $ $ $ $ Operating loss ) ) ) ) ) Net loss ) ) ) ) ) Net loss attributable to noncontrolling interest ) ) ) ) ) Net loss attributable to Genco Shipping & Trading Limited ) ) ) ) ) Net loss per share - basic (1) $ ) $ ) $ ) $ ) $ ) Net loss per share - diluted (1) $ ) $ ) $ ) $ ) $ ) Weighted average common shares outstanding - basic Weighted average common shares outstanding - diluted (1) Amounts may not total to annual loss because each quarter and year are calculated separately based on basic and diluted weighted-average common shares outstanding during that period. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2015 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 28 — SUBSEQUENT EVENTS On March 11, 2016, the Company entered into a waiver agreement with the lenders under the $253 Million Term Loan Facility to prepay the debt amortization payment due on April 11, 2016 and to waive the collateral maintenance covenant until April 11, 2016. Refer to Note 9 – Debt for further information. |
SUMMARY OF SIGNIFICANT ACCOUN38
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Principles of consolidation | Principles of consolidation The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP which includes the accounts of GS&T, its wholly-owned subsidiaries, and its wholly-owned indirect subsidiary, Baltic Trading. All intercompany accounts and transactions have been eliminated in consolidation. |
Business geographics | Business geographics The Company’s vessels regularly move between countries in international waters, over hundreds of trade routes and, as a result, the disclosure of geographic information is impracticable. |
Vessel acquisitions | Vessel acquisitions When the Company enters into an acquisition transaction, it determines whether the acquisition transaction was the purchase of an asset or a business based on the facts and circumstances of the transaction. As is customary in the shipping industry, the purchase of a vessel is normally treated as a purchase of an asset as the historical operating data for the vessel is not reviewed nor is it material to the Company’s decision to make such acquisition. When a vessel is acquired with an existing time charter, the Company allocates the purchase price to the vessel and the time charter based on, among other things, vessel market valuations and the present value (using an interest rate which reflects the risks associated with the acquired charters) of the difference between (i) the contractual amounts to be paid pursuant to the charter terms and (ii) management’s estimate of the fair market charter rate, measured over a period equal to the remaining term of the charter. The capitalized above-market (assets) and below-market (liabilities) charters are amortized as a reduction or increase, respectively, to revenues over the remaining term of the charter. |
Segment reporting | Segment reporting The Company reports financial information and evaluates its operation by voyage revenues and not by the length of ship employment for its customers, i.e., spot or time charters. Each of the Company’s vessels serve the same type of customer, have similar operation and maintenance requirements, operate in the same regulatory environment, and are subject to similar economic characteristics. Based on this, the Company has determined that after the effective date of the Merger on July 17, 2015, it operates in one reportable segment which is engaged in the ocean transportation of drybulk cargoes worldwide through the ownership and operation of drybulk carrier vessels. Prior to the Merger, the Company had two reportable operating segments, GS&T and Baltic Trading. |
Revenue and voyage expense recognition | Revenue and voyage expense recognition Since the Company’s inception, revenues have been generated from time charter agreements, pool agreements and spot market-related time charters. A time charter involves placing a vessel at the charterer’s disposal for a set period of time during which the charterer may use the vessel in return for the payment by the charterer of a specified daily hire rate, including any ballast bonus payments received pursuant to the time charter agreement. Spot market-related time charters are the same as other time charter agreements, except the time charter rates are variable and are based on a percentage of the average daily rates as published by the Baltic Dry Index (“BDI”). Voyage revenues also include the sale of bunkers consumed during short-term time charters pursuant to the terms of the time charter agreement. In time charters, spot market-related time charters and pool agreements, operating costs including crews, maintenance and insurance are typically paid by the owner of the vessel and specified voyage costs such as fuel and port charges are paid by the charterer. There are certain other non-specified voyage expenses, such as commissions, which are typically borne by the Company. At the inception of a time charter, the Company records the difference between the cost of bunker fuel delivered by the terminating charterer and the bunker fuel sold to the new charterer as a gain or loss within voyage expenses. Additionally, the Company records lower of cost or market adjustments to re-value the bunker fuel on a quarterly basis. These differences in bunkers, including lower of cost or market adjustments, resulted in a net loss of $8,927 and $1,616 during the year ended December 31, 2015 and the period from July 9 to December 31, 2014, respectively, for the Successor Company. During the period from January 1 to July 9, 2014 and during the year ended December 31, 2013, the Predecessor Company recorded a net gain of $252 and $567, respectively. Additionally, voyage expenses include the cost of bunkers consumed during short-term time charters pursuant to the terms of the time charter agreement. The Company records time charter revenues over the term of the charter as service is provided. Revenues are recognized on a straight-line basis as the average revenue over the term of the respective time charter agreement. The Company records spot market-related time charter revenues over the term of the charter as service is provided based on the rate determined based on the BDI for each respective billing period. As such, the revenue earned by the Company’s vessels that are on spot market-related time charters is subject to fluctuations of the spot market. The Company recognizes voyage expenses when incurred. Four of the Company’s vessels, the Genco Ocean, Genco Bay, Genco Avra and Genco Spirit, were chartered under spot market-related time charters which include a profit-sharing element. The time charters for the Genco Ocean and Genco Bay ended during August 2013 and March 2013, respectively. The time charters for the Genco Avra and Genco Spirit ended during March 2014 and November 2014, respectively. Under these charter agreements, the rate for the spot market-related time charter was linked with a floor of $9 and a ceiling of $14 daily with a 50% profit sharing arrangement to apply to any amount above the ceiling. The rate was based on 115% of the average of the daily rates reflected in the daily reports of the Baltic Handysize Index. At December 31, 2015 and 2014, 19 and 13 of the Company’s vessels were in vessel pools, respectively. At December 31, 2015 and 2014, the Company had 14 and seven vessels, respectively, operating in the Clipper Logger Pool and the Clipper Sapphire Pool, vessel pools trading in the spot market for which Clipper Group acts as the pool manager. Additionally, at December 31, 2015 and 2014, the Company had four and five vessels, respectively, operating in the Bulkhandling Handymax A/S Pool, a vessel pool trading in the spot market for which Torvald Klaveness acts as pool manager. Lastly, as of December 31, 2015 and 2014, the Company had one vessel operating in the Navig8 Bulk Pool, a vessel pool trading in the spot market for which Navig8 Inc. acts as the pool manager. Under pool arrangements, the vessels operate under a time charter agreement whereby the cost of bunkers and port expenses are borne by the pool and operating costs including crews, maintenance and insurance are typically paid by the owner of the vessel. Since the members of the pool share in the revenue less voyage expenses generated by the entire group of vessels in the pool, and the pool operates in the spot market, the revenue earned by these vessels is subject to the fluctuations of the spot market. The Company recognizes revenue from these pool arrangements based on its portion of the net distributions reported by the relevant pool, which represents the net voyage revenue of the pool after voyage expenses and pool manager fees. |
Other operating income | Other operating income During the year ended December 31, 2015 and the period from July 9 to December 31, 2014, the Successor Company recorded other operating income of $0 and $530, respectively. During the period from January 1 to July 9, 2014 and during the year ended December 31, 2013, the Predecessor Company recorded other operating income of $0 and $121, respectively. Other operating income recorded by the Successor Company during the period from July 9 to December 31, 2014 consists of $530 related to installments due from Samsun Logix Corporation (“Samsun”) pursuant to the rehabilitation plan which was approved by the South Korean courts. Other operating income recorded by the Predecessor Company during the year ended December 31, 2013 included $21 related to the settlement due from Korea Line Corporation (“KLC”) pursuant to the rehabilitation plan which was approved by the South Korean courts. Lastly, other operating income during the year ended December 31, 2013 also included $100 related to the receipt of 3,355 shares of stock of KLC as part of the aforementioned rehabilitation plan. This investment has been designated as Available for Sale (“AFS”). Refer to Note 21 — Commitments and Contingencies for further information regarding the bankruptcy settlements with Samsun and KLC and Note 6 — Investments for further information regarding the investment in KLC shares. |
Due from charterers, net | Due from charterers, net Due from charterers, net includes accounts receivable from charters, net of the provision for doubtful accounts. At each balance sheet date, the Company records the provision based on a review of all outstanding charter receivables. Included in the standard time charter contracts with the Company’s customers are certain performance parameters which, if not met, can result in customer claims. As of December 31, 2015 and 2014, the Company had a reserve of $429 and $1,588, respectively, against the due from charterers balance and an additional accrual of $498 and $662, respectively, in deferred revenue, each of which is primarily associated with estimated customer claims against the Company including vessel performance issues under time charter agreements. Revenue is based on contracted charterparties. However, there is always the possibility of dispute over terms and payment of hires and freights. In particular, disagreements may arise concerning the responsibility of lost time and revenue. Accordingly, the Company periodically assesses the recoverability of amounts outstanding and estimates a provision if there is a possibility of non-recoverability. The Company believes its provisions to be reasonable based on information available. |
Inventories | Inventories Inventories consist of consumable bunkers, lubricants and victualling stores, which are stated at the lower of cost or market value and are recorded in Prepaid expenses and other current assets. Cost is determined by the first in, first out method. |
Vessel operating expenses | Vessel operating expenses Vessel operating expenses include crew wages and related costs, the cost of insurance, expenses relating to repairs and maintenance, the cost of spares and consumable stores, and other miscellaneous expenses. Vessel operating expenses are recognized when incurred. |
Vessels, net | Vessels, net Vessels, net is stated at cost less accumulated depreciation. Included in vessel costs are acquisition costs directly attributable to the acquisition of a vessel and expenditures made to prepare the vessel for its initial voyage. The Company also capitalizes interest costs for a vessel under construction as a cost that is directly attributable to the acquisition of a vessel. Vessels are depreciated on a straight-line basis over their estimated useful lives, determined to be 25 years from the date of initial delivery from the shipyard. Depreciation expense for vessels for the Successor Company for the year ended December 31, 2015 and the period from July 9 to December 31, 2014 was $76,395 and $36,265, respectively. Depreciation expense for vessels for the Predecessor Company for the period from January 1 to July 9, 2014 and for the year ended December 31, 2013 was $71,756 and $133,562, respectively. Depreciation expense is calculated based on cost less the estimated residual scrap value. The costs of significant replacements, renewals and betterments are capitalized and depreciated over the shorter of the vessel’s remaining estimated useful life or the estimated life of the renewal or betterment. Undepreciated cost of any asset component being replaced that was acquired after the initial vessel purchase is written off as a component of vessel operating expense. Expenditures for routine maintenance and repairs are expensed as incurred. Scrap value is estimated by the Company by taking the cost of steel times the weight of the ship noted in lightweight tons (lwt). Effective July 9, 2014, on the Effective Date, the Company increased the estimated scrap value of the vessels from $245 per lwt to $310 per lwt prospectively based on the 15-year average scrap value of steel. During the year ended December 31, 2015 and the period from July 9 to December 31, 2014, the increase in the estimated scrap value resulted in a decrease in depreciation expense of $3,193 and $1,540, respectively, for the Successor Company. The decrease in depreciation expense does not take into effect the revaluation of the vessel assets due to fresh-start reporting. |
Fixed assets, net | Fixed assets, net Fixed assets, net are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are based on a straight line basis over the estimated useful life of the specific asset placed in service. The following table is used in determining the typical estimated useful lives: Description Useful lives Leasehold improvements Lesser of the estimated useful life of the asset or life of the lease Furniture, fixtures & other equipment 5 years Vessel equipment 2-15 years Computer equipment 3 years Depreciation and amortization expense for fixed assets for the year ended December 31, 2015 and the period from July 9 to December 31, 2014 for the Successor Company was $284 and $119, respectively. Depreciation and amortization expense for fixed assets for the period from January 1 to July 9, 2014 and for the year ended December 31, 2013 for the Predecessor Company was $458 and $1,481, respectively. |
Deferred drydocking costs | Deferred drydocking costs The Company’s vessels are required to be drydocked approximately every 30 to 60 months for major repairs and maintenance that cannot be performed while the vessels are operating. The Company defers the costs associated with the drydockings as they occur and amortizes these costs on a straight-line basis over the period between drydockings. Costs deferred as part of a vessel’s drydocking include actual costs incurred at the drydocking yard; cost of travel, lodging and subsistence of personnel sent to the drydocking site to supervise; and the cost of hiring a third party to oversee the drydocking. If the vessel is drydocked earlier than originally anticipated, any remaining deferred drydock costs that have not been amortized are expensed at the end of the next drydock. Amortization expense for drydocking for the year ended December 31, 2015 and the period from July 9 to December 31, 2014 for the Successor Company was $2,877 and $330, respectively. Amortization expense for drydocking for the period from January 1 to July 9, 2014 and for the year ended December 31, 2013 for the Predecessor Company was $3,738 and $5,700, respectively. All other costs incurred during drydocking are expensed as incurred. |
Goodwill | Goodwill The Company follows the provisions of ASC Subtopic 350-20, “Intangibles - Goodwill and Other” (“ASC 350-20”). This statement requires that goodwill and intangible assets with indefinite lives be tested for impairment at least annually or when there is a triggering event and written down with a charge to operations when the carrying amount of the reporting unit that includes goodwill exceeds the estimated fair value of the reporting unit. If the carrying value of the goodwill exceeds the reporting unit’s implied goodwill, such excess must be written off. The Company recorded Goodwill of $166,067 upon adoption of fresh-start reporting in accordance with provisions of ASC 852 as of the Effective Date. Pursuant to the Company’s annual goodwill impairment testing performed as of December 31, 2014, it was determined that the entire amount of this goodwill was impaired. Refer to Note 4 — Goodwill Impairment. |
Impairment of long-lived assets | Impairment of long-lived assets During the year ended December 31, 2015 and the period from July 9 to December 31, 2014, the Successor Company recorded $39,893 and $0, respectively, related to the impairment of vessel assets in accordance with ASC 360 — “Property, Plant and Equipment” (“ASC 360”). For the period from January 1 to July 9, 2014 and the year ended December 31, 2013, there were no impairment charges recorded by the Company. ASC 360 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts. If indicators of impairment are present, the Company performs an analysis of the anticipated undiscounted future net cash flows to be derived from the related long-lived assets. At December 31, 2015, the Company determined that the future undiscounted cash flows did not exceed the net book value for the Genco Marine. As such, a $4,497 impairment loss was recorded in order to adjust the value of the Genco Marine to its fair market value as of December 31, 2015. Additionally, at March 31, 2015, the Company determined that the sale of the Baltic Lion and Baltic Tiger was more likely than not based on Baltic Trading’s expressed consideration to divest of those vessels. Therefore, the time utilized to determine the recoverability of the carrying value of the vessel assets was significantly reduced, and after determining that the sum of the estimated undiscounted future cash flows attributable to the Baltic Lion and Baltic Tiger would not exceed the carrying value of the respective vessels, the Company reduced the carrying value of each vessel to its estimated fair value, which was determined primarily based on appraisals and third party broker quotes. This resulted in an impairment loss of $35,396. On April 8, 2015, the Baltic Lion and Baltic Tiger entities were sold to GS&T. Refer to Note 1 —General Information for details pertaining to the sale of these entities. As part of fresh-start reporting, the Company revalued its vessel assets at their fair values as of the Effective Date and the losses were recorded in Reorganization items, net in the Consolidated Statements of Operations. |
Loss on disposal of vessels | Loss on disposal of vessels During the year ended December 31, 2015, the Successor Company recorded $1,210 related to the loss on sale of vessels related to the sale of the Baltic Lion and Baltic Tiger entities to GS&T from Baltic Trading on April 8, 2015. |
Deferred financing costs | Deferred financing costs Deferred financing costs, included in other assets, consist of fees, commissions and legal expenses associated with securing loan facilities and other debt offerings and amending existing loan facilities. These costs are amortized over the life of the related debt and are included in Interest expense. |
Cash and cash equivalents | Cash and cash equivalents The Company considers highly liquid investments such as money market funds and certificates of deposit with an original maturity of three months or less to be cash equivalents. |
Investments | Investments The Company holds an investment in the capital stock of Jinhui Shipping and Transportation Limited (“Jinhui”) and in KLC. Jinhui is a drybulk shipping owner and operator focused on the Supramax segment of drybulk shipping. KLC is a marine transportation service company which operates a fleet of carriers which includes carriers for iron ore, liquefied natural gas and tankers for oil and petroleum products. The investments in Jinhui and KLC have been designated as AFS and are reported at fair value, with unrealized gains and losses recorded in equity as a component of accumulated other comprehensive income (loss) (“AOCI”). The Company classifies the investments as current or noncurrent assets based on the Company’s intent to hold the investments at each reporting date. Investments are reviewed quarterly to identify possible other-than-temporary impairment in accordance with ASC Subtopic 320-10, “Investments — Debt and Equity Securities” (“ASC 320-10”). When evaluating its investments, the Company reviews factors such as the length of time and extent to which fair value has been below the cost basis, the financial condition of the issuer, the underlying net asset value of the issuers assets and liabilities, and the Company’s ability and intent to hold the investment for a period of time which may be sufficient for anticipated recovery in market value. Should the decline in the value of any investment be deemed to be other-than-temporary, the investment basis would be written down to fair market value, and the write-down would be recorded to earnings as a loss. Refer to Note 6 — Investments. |
Income taxes | Income taxes Pursuant to Section 883 of the U.S. Internal Revenue Code of 1986 (as amended) (the “Code”), qualified income derived from the international operations of ships is excluded from gross income and exempt from U.S. federal income tax if a company engaged in the international operation of ships meets certain requirements (the “Section 883 exemption”). Among other things, in order to qualify, the Company must be incorporated in a country that grants an equivalent exemption to U.S. corporations and must satisfy certain qualified ownership requirements. GS&T is incorporated in the Marshall Islands. Pursuant to the income tax laws of the Marshall Islands, GS&T is not subject to Marshall Islands income tax. The Marshall Islands has been officially recognized by the Internal Revenue Service as a qualified foreign country that currently grants the requisite equivalent exemption from tax. GS&T is not taxable in any other jurisdiction, with the exception of Genco Management (USA) Limited, as noted below. GS&T will qualify for the Section 883 exemption if, among other things, (i) GS&T stock is treated as primarily and regularly traded on an established securities market in the United States (the “publicly traded test”), (ii) GS&T satisfies the qualified shareholder test or the controlled foreign corporation test. Under applicable Treasury Regulations, the publicly-traded test cannot be satisfied in any taxable year in which persons who actually or constructively own 5% or more of GS&T’s stock (“5% shareholders”), together own 50% or more of GS&T’s stock (by vote or value) for more than half the days in such year (the “five percent override rule”), unless an exception applies. A foreign corporation satisfies the qualified shareholder test if more than 50% of the value of its outstanding shares is owned (or treated as owned by applying certain attribution rules) for at least half of the number of days in the foreign corporation’s taxable year by one or more “qualified shareholders.” A qualified shareholder includes a foreign corporation that is organized in a qualified foreign country and meets the publicly traded test. Based on the publicly traded requirement of the Section 883 regulations, GS&T believes that it qualified for exemption from income tax on income derived from the international operations of ships during the years ended December 31, 2015, 2014 and 2013. In order to meet the publicly traded requirement, GS&T’s stock must be treated as being primarily and regularly traded for more than half the days of any such year. Under the Section 883 regulations, GS&T’s qualification for the publicly traded requirement may be jeopardized if shareholders of the Company’s common stock that own five percent or more of the Company’s stock (“5% shareholders”) own, in the aggregate, 50% or more of the Company’s common stock for more than half the days of the year. Management believes that during the years ended December 31, 2015, 2014 and 2013, the combined ownership of its 5% shareholders did not equal 50% or more of its common stock for more than half the days of each of those respective years, as applicable. If GS&T does not qualify for the Section 883 exemption, GS&T’s U.S. source shipping income, i.e., 50% of its gross shipping income attributable to transportation beginning or ending in the U.S. (but not both beginning and ending in the U.S.) would be subject to a 4% tax without allowance for deductions (the “U.S. gross transportation tax”). Prior to the Merger, Baltic Trading was also incorporated in the Marshall Islands and its stock is primarily traded on an established securities market in the U.S. However, GS&T indirectly owned shares of Baltic Trading’s Class B Stock which provided GS&T with over 50% of the combined voting power of all classes of Baltic Trading’s voting stock since Baltic Trading’s IPO was completed on March 15, 2010 until the Merger with Baltic Trading on July 17, 2015 (pursuant to which GS&T exchanged its shares for Baltic Trading’s outstanding common stock) . As a result, Baltic Trading’s Class B Stock has not been treated as regularly traded (a corporation’s stock is not regularly traded if, amongst other things, 50% or more of its stock (by vote or value) is not listed on one or more established securities markets) and Baltic Trading will not satisfy the publicly traded test in 2015 (and cannot satisfy the qualified shareholder test or the controlled foreign corporation test in 2015). Thus, Baltic Trading did not qualify for a Section 883 exemption in 2015. As such, Baltic Trading was subject to U.S. gross transportation income tax on its U.S. source shipping income. As a result of the Merger, Baltic Trading should qualify for the Section 883 exemption under the qualified shareholder test in 2016 and future taxable years as long as GS&T qualifies for the Section 883 exemption by satisfying the publicly-traded test in such years. During the year ended December 31, 2015 and the period from July 9 to December 31, 2014, Baltic Trading had U.S. source shipping income of $1,706 and $450, respectively. Baltic Trading’s estimated U.S. gross transportation income tax expense for the year ended December 31, 2015 and the period from July 9 to December 31, 2014 was $68 and $18, respectively. During the period from January 1 to July 9, 2014 and during the year ended December 31, 2013, Baltic Trading had U.S. source shipping income of $965 and $832, respectively. Baltic Trading’s U.S. gross transportation income tax expense for the period from January 1 to July 9, 2014 and for the year ended December 31, 2013 was $39 and $34, respectively. In addition to GS&T’s shipping income and pursuant to certain agreements, GS&T technically and commercially managed vessels for Baltic Trading until the Merger, as well as provides technical management of vessels for MEP in exchange for specified fees for these services provided. These services are performed by Genco Management (USA) Limited (“Genco (USA)”), which has elected to be taxed as a corporation for United States federal income tax purposes. As such, Genco (USA) is subject to Untied States federal income tax (currently imposed at graduated rates of up to 35%) on its worldwide net income, including the net income derived from providing these services. Genco (USA) has entered into a cost-sharing agreement with the Company and Genco Ship Management LLC, collectively “Manco,” pursuant to which Genco (USA) agrees to reimburse Manco for the costs incurred by Genco (USA) for the use of Manco’s personnel and services in connection with the provision of management services for both Baltic Trading and MEP’s vessels. Total revenue earned by the Successor Company for these services during the year ended December 31, 2015 and the period from July 9 to December 31, 2014 was $6,410 and $3,893, respectively, of which $3,235 and $2,309, respectively, eliminated upon consolidation. After allocation of certain expenses, there was taxable net income of $3,880 associated with these activities for the year ended December 31, 2015. This resulted in estimated U.S. federal net income tax expense of $1,753 for the year ended December 31, 2015. After allocation of certain expenses, there was taxable net income of $2,178 associated with these activities for the period from July 9 to December 31, 2014. This resulted in estimated U.S. federal net income tax expense of $978 for the period from July 9 to December 31, 2014. Total revenue earned by the Predecessor Company for these services during the period from January 1 to July 9, 2014 and during the year ended December 31, 2013 was $3,857 and $7,856, respectively, of which $2,156 and $4,571, respectively, was eliminated upon consolidation. After allocation of certain expenses, there was taxable net income of $1,723 associated with these activities for the period from January 1 to July 9, 2014. This resulted in estimated U.S. federal net income tax expense of $776 for the period from January 1 to July 9, 2014. After allocation of certain expenses, there was taxable net income of $4,235 associated with these activities for the year ended December 31, 2013. This resulted in estimated U.S. federal net income tax expense of $1,864 for the year ended December 31, 2013. |
Deferred revenue | Deferred revenue Deferred revenue primarily relates to cash received from charterers prior to it being earned. These amounts are recognized as income when earned. Additionally, deferred revenue includes estimated customer claims mainly due to time charter performance issues. Refer to “Revenue and voyage expense recognition” above for description of the Company’s revenue recognition policy. |
Comprehensive income | Comprehensive income The Company follows ASC Subtopic 220-10, “Comprehensive Income” (“ASC 220-10”), which establishes standards for reporting and displaying comprehensive income and its components in financial statements. Comprehensive income is comprised of net income and amounts related to unrealized gains or losses associated with the Company’s AFS investments, as well as the Company’s interest rate swaps accounted for as hedges prior to their termination as part of the Chapter 11 Cases. |
Nonvested stock awards | Nonvested stock awards The Company follows ASC Subtopic 718-10, “Compensation — Stock Compensation” (“ASC 718-10”), for nonvested stock issued under its equity incentive plans. Stock-based compensation costs from nonvested stock have been classified as a component of additional paid-in capital. |
Accounting estimates | Accounting estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include vessel valuations, the valuation of amounts due from charterers, performance claims, residual value of vessels, useful life of vessels and the fair value of derivative instruments. Actual results could differ from those estimates. |
Concentration of credit risk | Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk are amounts due from charterers, cash and cash equivalents, deposits on vessels and interest rate swap agreements. With respect to amounts due from charterers, the Company attempts to limit its credit risk by performing ongoing credit evaluations and, when deemed necessary, requires letters of credit, guarantees or collateral. The Successor Company earned 100% of voyage revenues from 52 and 44 customers during the year ended December 31, 2015 and during the period from July 9 to December 31, 2014. The Predecessor Company earned 100% of voyage revenues from 33 and 48 customers during the period from January 1 to July 9, 2014 and during the year ended December 31, 2013. Management does not believe significant risk exists in connection with the Company’s concentrations of credit at December 31, 2015 and 2014. For the year ended December 31, 2015 for the Successor Company, there were three customers that individually accounted for more than 10% of voyage revenues; Swissmarine Services S.A., including its subsidiaries (“Swissmarine”), Clipper Group, including Clipper Bulk Shipping, the Clipper Logger Pool and the Clipper Sapphire Pool (“Clipper”), and Pioneer Navigation Ltd., which represented 24.37%, 19.09% and 13.03% of voyage revenues, respectively. For the period from July 9 to December 31, 2014 for the Successor Company, there were two customers that individually accounted for more than 10% of voyage revenues; Cargill International S.A., including its subsidiaries (“Cargill”) and Swissmarine, which represented 17.06% and 22.52% of voyage revenues, respectively. For the period from January 1 to July 9, 2014 for the Predecessor Company, there were two customers that individually accounted for more than 10% of voyage revenues; Cargill and Swissmarine, which represented 19.37% and 20.67% of voyage revenues, respectively. For the year ended December 31, 2013 for the Predecessor Company, there were three customers that individually accounted for more than 10% of voyage revenues; Cargill, Swissmarine and Pacific Basin Chartering Ltd., which represented 21.45%, 18.73% and 10.30% of voyage revenues, respectively. At December 31, 2014, deposits on vessels consist primarily of progress payments due by Baltic Trading to the shipyard as per the newbuilding contracts with Yangfan Group Co., Ltd. These payments were not held in an escrow account; however, Baltic Trading had a refund guarantee with the Bank of China in the case that Yangfan Group Co., Ltd. did not perform as required by the newbuilding contracts. Refer to Note 5 — Vessel Acquisitions for further information. At December 31, 2015 and 2014, the Company maintains all of its cash and cash equivalents with three financial institutions. None of the Company’s cash and cash equivalent balance is covered by insurance in the event of default by these financial institutions. At December 31, 2013, the Company had four interest rate swap agreements with DnB Bank ASA to manage interest costs and the risk associated with changing interest rates related to the 2007 Credit Facility. None of the interest rate swap agreements were covered by insurance in the event of default by this financial institution. On April 30, 2014, the remaining interest rate swap agreement was terminated by DNB Bank ASA and a secure claim was filed with the Bankruptcy Court. Refer to Note 1 — General Information for additional information regarding defaults related to the interest rate swap. There were no interest rate swaps held by the Company at December 31, 2015 or 2014. |
Fair value of financial instruments | Fair value of financial instruments The estimated fair values of the Company’s financial instruments, such as amounts due to / due from charterers, accounts payable and long-term debt, approximate their individual carrying amounts as of December 31, 2015 and 2014 due to their short-term maturity or the variable-rate nature of the respective borrowings under the credit facilities. See Note 13 — Fair Value of Financial Instruments for additional disclosure on the fair values of long-term debt and AFS securities. |
Derivative financial instruments | Derivative financial instruments Interest rate risk management The Company is exposed to the impact of interest rate changes. The Company’s objective is to manage the impact of interest rate changes on its earnings and cash flow in relation to borrowings primarily for the purpose of acquiring drybulk vessels. These borrowings are subject to a variable borrowing rate. Up until the Effective Date, the Company used pay-fixed receive-variable interest rate swaps to manage future interest costs and the risk associated with changing interest rate obligations. These swaps were designated as cash flow hedges of future variable rate interest payments and were tested for effectiveness on a quarterly basis. Refer to Note 11 — Interest Rate Swap Agreements for further information regarding the interest rate swaps that were held by the Company prior to the Effective Date. The differential to be paid or received for the effectively hedged portion of any swap agreement was recognized as an adjustment to interest expense as incurred. Additionally, the changes in value for the portion of the swaps that were effectively hedging future interest payments were reflected as a component of AOCI. For the interest rate swaps that are not designated as an effective hedge, the change in the value and the rate differential to be paid or received was recognized as other expense and is listed as a component of other (expense) income in the Consolidated Statements of Operations. |
Recent accounting pronouncements | Recent accounting pronouncements In February 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842),” which replaces the existing guidance in ASC 840 — Leases. This ASU requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset, and for operating leases, the lessee would recognize a straight-line total lease expense. This ASU is effective for fiscal years beginning after December 15, 2018, and for interim periods within those fiscal years. Lessees and lessors will be required to apply the new standard at the beginning of the earliest period presented in the financial statements in which they first apply the new guidance, using a modified retrospective transition method. The requirements of this standard include a significant increase in required disclosures. The Company is currently evaluating the impact of this adoption on its consolidated financial statements. In August 2015, the FASB issued ASU No. 2015-15 (“ASU 2015-15”), which amends presentation and disclosure requirements outlined in ASU 2015-03, “Interest-Imputation of Interest (ASC Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs,” (“ASU 2015-03”) by clarifying guidance for debt issuance costs related to line of credit arrangements by acknowledging the statement by SEC staff that it would not object to presentation of debt issuance costs related to a line of credit arrangement as an asset, and amortizing them ratably over the term of the line of credit arrangement, regardless of whether there were any borrowings outstanding under the agreement. Issued in April 2015, ASU 2015-03 required debt issuance costs related to a recognized debt liability to be presented on the balance sheet as a direct deduction from the debt liability, similar to the presentation of debt discounts. Prior to the issuance of ASU 2015-03, debt issuance costs were required to be presented as deferred charge assets, separate from the related debt liability. ASU 2015-03 does not change the recognition and measurement requirements for debt issuance costs. ASU 2015-03 is effective for fiscal years beginning after December 15, 2015, and early adoption is permitted. The Company is currently evaluating the impact of this adoption on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle is that a company should recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, and shall be applied either retrospectively to each period presented or as a cumulative effect adjustment as of the date of adoption. On July 9, 2015, the FASB voted to defer the effective date by one year to December 15, 2017 for annual reporting periods beginning after that date. The FASB also permitted early adoption of the standard, but not before the original effective date of December 15, 2016. The Company is evaluating the potential impact of this adoption on its consolidated financial statements. |
GENERAL INFORMATION (Tables)
GENERAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
GENERAL INFORMATION | |
Schedule of effects of the Plan and fresh-start reporting | Fresh-Start Adjustments Predecessor July 9, 2014 Debt Discharge and Equity Issuance (a) (restated) Reinstatement of Liabilities (b) Revaluation of Assets and Liabilities (c) (restated) Successor July 9, 2014 Assets Current assets: Cash and cash equivalents $ $ $ — $ — $ Restricted cash — — — Due from charterers, net — — — Prepaid expenses and other current assets — — ) Time charters acquired — — — Total current assets — Noncurrent assets: Vessels, net — — ) Deposits on vessels — — Fresh-Start Adjustments Predecessor July 9, 2014 Debt Discharge and Equity Issuance (a) (restated) Reinstatement of Liabilities (b) Revaluation of Assets and Liabilities (c) (restated) Successor July 9, 2014 Deferred drydock, net — — ) Deferred financing costs, net ) — — Fixed assets, net — — ) Other noncurrent assets — — — Restricted cash — — — Investments — — — Goodwill — — — Total noncurrent assets ) — ) Total assets $ $ $ — $ ) $ Liabilities and Equity Current liabilities not subject to compromise: Accounts payable and accrued expenses $ $ ) $ $ — $ Current portion of long-term debt — — Deferred revenue — — — Time charters acquired — — ) — Total current liabilities not subject to compromise ) ) Noncurrent liabilities not subject to compromise: Long-term lease obligations — — ) — Long-term debt — — Total noncurrent liabilities not subject to compromises — ) Total liabilities subject to compromise ) ) — — Total liabilities ) — ) Equity: Genco Shipping & Trading Limited shareholders’ equity: Predecessor Common stock ) — — — Predecessor Additional paid-in capital ) — — — Successor Common stock — — — Successor Additional paid-in capital — — — Accumulated other comprehensive income ) — — — Retained (deficit) earnings ) — ) — Total Genco Shipping & Trading Limited shareholders’ equity — ) Noncontrolling interest — — ) Total equity — ) Total liabilities and equity $ $ $ — $ ) $ (a) Debt Discharge and Equity Issuance — this column reflects the following adjustments pursuant to the Plan: 1. Items comprising the net gain on settlement of liabilities subject to compromise in exchange for equity issuance — see Note 18. Predecessor Period from January 1 to July 9, 2014 Discharge of the outstanding debt under the 2007 Credit Facility $ Discharge of the long-term interest payable due pursuant to the 2007 Credit Facility Discharge of the 2010 Notes liability Discharge of coupon interest on the 2010 Notes liability The elimination of deferred financing fees associated with the discharged obligations ) The elimination of accumulated other comprehensive income related to interest rate swaps associated with the discharged obligations ) Issuance of Successor common stock ) Net gain on the discharge of Predecessor liabilities related to liabilities subject to compromise and associated issuance of Successor equity $ 2. Other items associated with the settlement of liabilities subject to compromise: · The payment of interest expense accrued up to the Effective Date of $1,772, $59 and $156 for the 2007 Credit Facility, the $100 Million Term Loan Facility and the $253 Million Term Loan Facility, respectively. · The paydown on the Effective Date of $1,923 and $5,075 for the $100 Million Term Loan Facility and $253 Million Term Loan Facility, respectively, which were due on the Effective Date as they were not paid during the pendency of the Chapter 11 Cases. · The payment of deferred financing fees of $3,490 for the Amended and Restated $100 Million and $253 Million Term Loan Facilities. 3. The reclassification to retained (deficit) earnings of $34,931 related to the gain associated with the Company’s investments. 4. The reclassification of $900 of initial equity to accounts payable that represents the estimated amount of the notes discharged that will be paid in cash to nonaccredited investors. 5. The reclassification to retained (deficit) earnings of the Predecessor common stock of $445 and Predecessor additional paid in capital of $849,130. 6. Receipt of the proceeds of the $100,000 rights offering pursuant to the Plan. (b) Reinstatement of Liabilities — this column reflects the reinstatement of the remaining Liabilities subject to compromise for the Predecessor Company which were not already adjusted in the Debt Discharge and Equity Issuance column. It includes the following adjustments: · The reclassification of the debt outstanding under the Amended and Restated $100 Million Term Loan Facility. This includes $7,692 of current long-term debt and $63,946 of long-term debt. · The reclassification of the debt outstanding under the Amended and Restated $253 Million Term Loan Facility. This includes $20,300 of current long-term debt and $150,343 of long-term debt. · The reinstatement of $5,622 related to the termination of the interest rate swap agreement with DNB Bank ASA. · The reinstatement of the $815 lease obligation. · The reinstatement of $41 of pre-petition accounts payable due to vendors in the United States. (c) Revaluation of Assets and Liabilities — Fresh-start reporting adjustments are made to reflect asset values at their estimated fair value, including: · Adjustment of $179 to prepaid amounts for the Predecessor Company. · Adjustment to reflect the fair value of time charters acquired of $434. · Adjustment of $1,083,404 to reflect the fair value of vessel assets, vessel deposits, drydocking assets and other fixed assets as of the Effective Date. The portion of the asset revaluation associated with Baltic Trading’s noncontrolling interest in the amount of $74,355 was reflected as a reduction of noncontrolling interest. · Adjustment of $2,670 to reflect the fair value of the Company’s current lease agreement, which was previously recorded as long-term lease obligations. As of the Effective Date, the lease agreement has been valued at below market; therefore, we have recorded in “Prepaid expenses and other current assets” an asset of $138, which will be amortized over the remaining life of the lease agreement. · Goodwill in the amount of $166,067 was recognized, which represents the portion of the total reorganization value that was not attributed to specific tangible or identifiable intangible assets. The portion of the goodwill recognized in relation to Baltic Trading noncontrolling interest in the amount of $24,022 was reflected as an increase in noncontrolling interest. A summary of the allocation of the reorganization value to the fair value of the Successor Company net assets, including goodwill, is as follows: Total Reorganization Value Value of shares issued to pre-petition claimants $ Proceeds of rights offering $ Estimated fair value of debt Current portion of long-term debt Long term debt Estimated fair value of non-debt liabilities Deferred revenue Accounts payable and accrued expenses Noncontrolling interest Reorganization value of assets Estimated fair value of assets (excluding goodwill) (a) ) Reorganization value of assets in excess of fair value — goodwill $ (a) Estimated fair value of assets (excluding goodwill) consists of: Total current assets $ Vessels, net Deposits on vessels Deferred drydock, net Deferred financing costs, net Fixed assets, net Other noncurrent assets Restricted cash Investments Total assets excluding goodwill $ · The total reduction of $53,367 in noncontrolling interest is due to the adjustment of the fair value of the noncontrolling interest derived from the Baltic Trading asset revaluation and goodwill described above and an additional revaluation adjustment of $3,034. The revalued noncontrolling interest was determined based on a relative fair value allocation of Baltic Trading Limited’s estimated equity value as July 8, 2014, which multiplied the percentage of Baltic Trading Limited’s equity ownership attributable to non-controlling interests by the estimated equity value of Baltic Trading Limited as of such date. The estimated equity value of Baltic Trading Limited as of such date was determined by multiplying the closing price of Baltic Trading Limited’s publicly traded common stock by the total number of shares of Baltic Trading Limited’s common stock and Class B stock outstanding on July 8, 2014. |
Schedule of the net gain on settlement of liabilities subject to compromise in exchange for equity issuance | Predecessor Period from January 1 to July 9, 2014 Discharge of the outstanding debt under the 2007 Credit Facility $ Discharge of the long-term interest payable due pursuant to the 2007 Credit Facility Discharge of the 2010 Notes liability Discharge of coupon interest on the 2010 Notes liability The elimination of deferred financing fees associated with the discharged obligations ) The elimination of accumulated other comprehensive income related to interest rate swaps associated with the discharged obligations ) Issuance of Successor common stock ) Net gain on the discharge of Predecessor liabilities related to liabilities subject to compromise and associated issuance of Successor equity $ |
Summary of allocation of the reorganization value to the fair value of the Successor Company net assets, including goodwill | Total Reorganization Value Value of shares issued to pre-petition claimants $ Proceeds of rights offering $ Estimated fair value of debt Current portion of long-term debt Long term debt Estimated fair value of non-debt liabilities Deferred revenue Accounts payable and accrued expenses Noncontrolling interest Reorganization value of assets Estimated fair value of assets (excluding goodwill) (a) ) Reorganization value of assets in excess of fair value — goodwill $ (a) Estimated fair value of assets (excluding goodwill) consists of: Total current assets $ Vessels, net Deposits on vessels Deferred drydock, net Deferred financing costs, net Fixed assets, net Other noncurrent assets Restricted cash Investments Total assets excluding goodwill $ |
Schedule of estimated fair value of assets excluding goodwill | Total current assets $ Vessels, net Deposits on vessels Deferred drydock, net Deferred financing costs, net Fixed assets, net Other noncurrent assets Restricted cash Investments Total assets excluding goodwill $ |
Schedule of wholly owned ship-owning subsidiaries | Below is the list of Company’s wholly owned ship-owning subsidiaries as of December 31, 2015: Wholly Owned Subsidiaries Vessel Acquired Dwt Delivery Date Year Built Genco Reliance Limited Genco Reliance 12/6/04 1999 Genco Vigour Limited Genco Vigour 12/15/04 1999 Genco Explorer Limited Genco Explorer 12/17/04 1999 Genco Carrier Limited Genco Carrier 12/28/04 1998 Genco Sugar Limited Genco Sugar 12/30/04 1998 Genco Pioneer Limited Genco Pioneer 1/4/05 1999 Genco Progress Limited Genco Progress 1/12/05 1999 Genco Wisdom Limited Genco Wisdom 1/13/05 1997 Genco Success Limited Genco Success 1/31/05 1997 Genco Beauty Limited Genco Beauty 2/7/05 1999 Genco Knight Limited Genco Knight 2/16/05 1999 Genco Leader Limited Genco Leader 2/16/05 1999 Genco Marine Limited Genco Marine 3/29/05 1996 Genco Prosperity Limited Genco Prosperity 4/4/05 1997 Genco Muse Limited Genco Muse 10/14/05 2001 Genco Acheron Limited Genco Acheron 11/7/06 1999 Genco Surprise Limited Genco Surprise 11/17/06 1998 Genco Augustus Limited Genco Augustus 8/17/07 2007 Genco Tiberius Limited Genco Tiberius 8/28/07 2007 Genco London Limited Genco London 9/28/07 2007 Genco Titus Limited Genco Titus 11/15/07 2007 Genco Challenger Limited Genco Challenger 12/14/07 2003 Genco Charger Limited Genco Charger 12/14/07 2005 Genco Warrior Limited Genco Warrior 12/17/07 2005 Genco Predator Limited Genco Predator 12/20/07 2005 Genco Hunter Limited Genco Hunter 12/20/07 2007 Genco Champion Limited Genco Champion 1/2/08 2006 Genco Constantine Limited Genco Constantine 2/21/08 2008 Genco Raptor LLC Genco Raptor 6/23/08 2007 Genco Cavalier LLC Genco Cavalier 7/17/08 2007 Genco Thunder LLC Genco Thunder 9/25/08 2007 Genco Hadrian Limited Genco Hadrian 12/29/08 2008 Genco Commodus Limited Genco Commodus 7/22/09 2009 Genco Maximus Limited Genco Maximus 9/18/09 2009 Genco Claudius Limited Genco Claudius 12/30/09 2010 Genco Bay Limited Genco Bay 8/24/10 2010 Genco Ocean Limited Genco Ocean 7/26/10 2010 Genco Avra Limited Genco Avra 5/12/11 2011 Genco Mare Limited Genco Mare 7/20/11 2011 Genco Spirit Limited Genco Spirit 11/10/11 2011 Genco Aquitaine Limited Genco Aquitaine 8/18/10 2009 Genco Ardennes Limited Genco Ardennes 8/31/10 2009 Genco Auvergne Limited Genco Auvergne 8/16/10 2009 Genco Bourgogne Limited Genco Bourgogne 8/24/10 2010 Genco Brittany Limited Genco Brittany 9/23/10 2010 Genco Languedoc Limited Genco Languedoc 9/29/10 2010 Genco Loire Limited Genco Loire 8/4/10 2009 Genco Lorraine Limited Genco Lorraine 7/29/10 2009 Genco Normandy Limited Genco Normandy 8/10/10 2007 Genco Picardy Limited Genco Picardy 8/16/10 2005 Genco Provence Limited Genco Provence 8/23/10 2004 Genco Pyrenees Limited Genco Pyrenees 8/10/10 2010 Genco Rhone Limited Genco Rhone 3/29/11 2011 Baltic Lion Limited Baltic Lion 4/8/15 (1) 2012 Baltic Tiger Limited Genco Tiger 4/8/15 (1) 2011 Baltic Leopard Limited Baltic Leopard 4/8/10 (2) 2009 Baltic Panther Limited Baltic Panther 4/29/10 (2) 2009 Baltic Cougar Limited Baltic Cougar 5/28/10 (2) 2009 Baltic Jaguar Limited Baltic Jaguar 5/14/10 (2) 2009 Baltic Bear Limited Baltic Bear 5/14/10 (2) 2010 Baltic Wolf Limited Baltic Wolf 10/14/10 (2) 2010 Baltic Wind Limited Baltic Wind 8/4/10 (2) 2009 Baltic Cove Limited Baltic Cove 8/23/10 (2) 2010 Baltic Breeze Limited Baltic Breeze 10/12/10 (2) 2010 Baltic Fox Limited Baltic Fox 9/6/13 (2) 2010 Baltic Hare Limited Baltic Hare 9/5/13 (2) 2009 Baltic Hornet Limited Baltic Hornet 10/29/14 (2) 2014 Baltic Wasp Limited Baltic Wasp 1/2/15 (2) 2015 Baltic Scorpion Limited Baltic Scorpion 8/6/15 2015 Baltic Mantis Limited Baltic Mantis 10/9/15 2015 (1) The delivery date for these vessels represents the date that the vessel was purchased from Baltic Trading. (2) The delivery date for these vessels represents the date that the vessel was delivered to Baltic Trading. |
SUMMARY OF SIGNIFICANT ACCOUN40
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Estimated Useful Lives of Fixed Assets | |
Property Plant and Equipment | |
Schedule of estimated useful lives of fixed assets | Description Useful lives Leasehold improvements Lesser of the estimated useful life of the asset or life of the lease Furniture, fixtures & other equipment 5 years Vessel equipment 2-15 years Computer equipment 3 years |
NET LOSS PER COMMON SHARE (Tabl
NET LOSS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
NET LOSS PER COMMON SHARE | |
Components of denominator for calculation of basic net loss per share and diluted net loss per share | Successor Predecessor Year Period from Period from Year Ended July 9 to January 1 to Ended December 31, December 31, July 9, December 31, 2015 2014 2014 2013 Common shares outstanding, basic: Weighted-average common shares outstanding, basic Common shares outstanding, diluted: Weighted-average common shares outstanding, basic Dilutive effect of warrants — — — — Dilutive effect of convertible notes — — — — Dilutive effect of restricted stock awards — — — — Weighted-average common shares outstanding, diluted |
Reconciliation of the net loss attributable to GS&T and the net loss attributable to GS&T for diluted net loss per share | Successor Predecessor Period from Period from Year July 9 to January 1 to Year Ended December 31, July 9, Ended December 31, 2014 2014 December 31, 2015 (restated) (restated) 2013 Net loss attributable to GS&T $ ) $ ) $ ) $ ) Interest expense related to convertible notes, if dilutive — — — — Net loss attributable to GS&T for the computation of diluted net loss per share $ ) $ ) $ ) $ ) |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Line of Credit Facility | |
Schedule of long-term debt | Successor Successor December 31, 2015 December 31, 2014 $100 Million Term Loan Facility $ $ $253 Million Term Loan Facility $44 Million Term Loan Facility 2015 Revolving Credit Facility — $98 Million Credit Facility — 2010 Credit Facility — $148 Million Credit Facility — $22 Million Term Loan Facility 2014 Term Loan Facilities Less: Current portion ) ) Long-term debt $ — $ |
Schedule of effective interest rate and the range of interest rates on the debt | Successor Predecessor Year Period from Period from Year Ended July 9 to January 1 to Ended December 31, December 31, July 9, December 31, 2015 2014 2014 2013 Effective Interest Rate Range of Interest Rates (excluding impact of swaps and unused commitment fees) 2.69% to 6.73% 2.73% to 3.76% 3.15% to 5.15% 3.16% to 4.38% |
$98 Million Credit Facility | |
Line of Credit Facility | |
Scheduled repayment of outstanding debt | Year Ending December 31, Total 2016 $ — 2017 2018 2019 2020 Total debt $ |
2015 Revolving Credit Facility | |
Line of Credit Facility | |
Scheduled repayment of outstanding debt | Year Ending December 31, Total 2016 $ 2017 2018 2019 2020 Total debt $ |
$100 Million Term Loan Facility | |
Line of Credit Facility | |
Scheduled repayment of outstanding debt | Year Ending December 31, Total 2016 $ 2017 2018 2019 Total debt $ |
$253 Million Term Loan Facility | |
Line of Credit Facility | |
Scheduled repayment of outstanding debt | Year Ending December 31, Total 2016 $ 2017 2018 2019 Total debt $ |
$44 Million Term Loan Facility | |
Line of Credit Facility | |
Scheduled repayment of outstanding debt | Year Ending December 31, Total 2016 $ 2017 2018 2019 Total debt $ |
$22 Million Term Loan Facility | |
Line of Credit Facility | |
Scheduled repayment of outstanding debt | Year Ending December 31, Total 2016 $ 2017 2018 2019 Total debt $ |
2014 Term Loan Facilities | |
Line of Credit Facility | |
Scheduled repayment of outstanding debt | Year Ending December 31, Total 2016 $ 2017 2018 2019 2020 Thereafter Total debt $ |
Baltic Trading $115 Million Revolving Credit Facility | |
Line of Credit Facility | |
Scheduled repayment of outstanding debt | Year Ending December 31, Total 2016 $ 2017 2018 2019 Total debt $ |
Baltic Trading $33 Million Term Loan Facility | |
Line of Credit Facility | |
Scheduled repayment of outstanding debt | Year Ending December 31, Total 2016 $ 2017 2018 2019 Total debt $ |
CONVERTIBLE SENIOR NOTES (Table
CONVERTIBLE SENIOR NOTES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
CONVERTIBLE SENIOR NOTES | |
Schedule of effective interest rate, cash and non-cash interest expense and deferred financing cost amortization | Period from Year January 1 to Ended July 9, December 31, 2014 (a) 2013 Effective interest rate on liability component % % Cash interest expense recognized $ $ Non-cash interest expense recognized Non-cash deferred financing amortization costs included in interest expense (a) The amounts and percentage reflect amounts through April 21, 2014 since the Company ceased recording interest expense due to the Chapter 11 Cases. |
INTEREST RATE SWAP AGREEMENTS (
INTEREST RATE SWAP AGREEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Predecessor | |
INTEREST RATE SWAP AGREEMENTS | |
Schedule of the impact of derivative instruments and their location within the Condensed Consolidated Statement of Operations | The Effect of Derivative Instruments on the Consolidated Statement of Operations For the Period from January 1 to July 9, 2014 Predecessor Company Derivatives in Cash Flow Hedging Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from AOCI into income (Effective Amount of Gain (Loss) Reclassified from AOCI into income (Effective Portion) Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) Relationships 2014 Portion) 2014 Portion) 2014 Interest rate contracts $ ) Interest Expense $ ) Other Income (Expense) $ — The Effect of Derivative Instruments on the Consolidated Statement of Operations For the Year Ended December 31, 2013 Predecessor Company Derivatives in Cash Flow Hedging Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from AOCI into income (Effective Amount of Gain (Loss) Reclassified from AOCI into income (Effective Portion) Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) Relationships 2013 Portion) 2013 Portion) 2013 Interest rate contracts $ ) Interest Expense $ ) Other Income (Expense) $ ) The Effect of Derivative Instruments on the Consolidated Statement of Operations For the Period from January 1 to July 9, 2014 and for the Year Ended December 31, 2013 Predecessor Company Amount of Gain (Loss) Recognized in Income on Derivative Location of For the Period Year Gain (Loss) from January 1 to Ended Derivatives not designated Recognized in Income July 9, December 31, as Hedging Instruments on Derivative 2014 2013 Interest rate contracts Interest Expense $ ) $ — |
ACCUMULATED OTHER COMPREHENSI45
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
Schedule of components of AOCI included in the accompanying consolidated balance sheets | Changes in AOCI by Component For the Period from July 9, 2014 to December 31, 2015 Successor Company Net Unrealized Gain (Loss) on Investments AOCI — July 9, 2014 $ — OCI before reclassifications ) Amounts reclassified from AOCI — Net current-period OCI ) AOCI — December 31, 2014 $ ) OCI before reclassifications ) Amounts reclassified from AOCI Net current-period OCI AOCI — December 31, 2015 $ ) Changes in AOCI by Component For the Period from January 1, 2013 to July 9, 2014 Predecessor Company Net Unrealized Gain (Loss) on Cash Flow Hedges Net Unrealized Gain (Loss) on Investments Total AOCI — January 1, 2013 $ ) $ $ ) OCI before reclassifications Amounts reclassified from AOCI ) — ) Net current-period OCI AOCI — December 31, 2013 $ ) $ $ OCI before reclassifications ) ) ) Amounts reclassified from AOCI — Net current-period OCI ) ) AOCI — July 9, 2014 $ ) $ $ |
Reclassifications Out of AOCI | Reclassifications Out of AOCI Successor Company Amount Reclassified from AOCI Successor For the For the Year Period from Ended July 9 to Affected Line Item in December 31, December 31, the Statement Where Details about AOCI Components 2015 2014 Net Loss is Presented Net unrealized loss on investments Realized loss on sale of AFS investment $ ) $ — Other (expense) income Impairment of AFS investment ) — Impairment of investment Total reclassifications for the period $ ) $ — Reclassification Out of AOCI Predecessor Company For the For the Period from Year January 1 to Ended Affected Line Item in July 9, December 31, the Statement Where Details about AOCI Components 2014 2013 Net Loss is Presented Gains and losses on cash flow hedges Interest rate contracts $ ) $ ) Interest expense Total reclassifications for the period $ ) $ ) |
FAIR VALUE OF FINANCIAL INSTR46
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
Schedule of fair values and carrying values of the Company's financial instruments | Successor December 31, 2015 December 31, 2014 Carrying Value Fair Value Carrying Value Fair Value Cash and cash equivalents $ $ $ $ Restricted cash Floating rate debt |
Schedule of fair values of the Company's financial assets and liabilities | Successor December 31, 2015 Total Quoted Market Prices in Active Markets (Level 1) Investments $ $ Successor December 31, 2014 Total Quoted Market Prices in Active Markets (Level 1) Investments $ $ |
PREPAID EXPENSES AND OTHER CU47
PREPAID EXPENSES AND OTHER CURRENT AND NONCURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
PREPAID EXPENSES AND OTHER CURRENT AND NONCURRENT ASSETS | |
Schedule of prepaid expenses and other current assets | Successor Successor December 31, 2015 December 31, 2014 Lubricant inventory, fuel oil and diesel oil inventory and other stores $ $ Prepaid items Insurance receivable Other Total prepaid expenses and other current assets $ $ |
DEFERRED FINANCING COSTS (Table
DEFERRED FINANCING COSTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
DEFERRED FINANCING COSTS | |
Schedule of deferred financing costs | Successor Successor December 31, 2015 December 31, 2014 $100 Million Term Loan Facility $ $ $253 Million Term Loan Facility $44 Million Term Loan Facility 2015 Revolving Credit Facility — $98 Million Credit Facility — $148 Million Credit Facility $22 Million Term Loan Facility 2014 Term Loan Facilities Total deferred financing costs Less: accumulated amortization Total $ $ |
FIXED ASSETS (Tables)
FIXED ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Detail of Fixed Assets, Excluding Vessels | |
FIXED ASSETS | |
Schedule of fixed assets | Successor Successor December 31, 2015 December 31, 2014 Fixed assets, at cost: Vessel equipment $ $ Furniture and fixtures Computer equipment Total costs Less: accumulated depreciation and amortization Total $ $ |
ACCOUNTS PAYABLE AND ACCRUED 50
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | |
Schedule of accounts payable and accrued expenses | Successor Successor December 31, 2015 December 31, 2014 Accounts payable $ $ Accrued general and administrative expenses Accrued vessel operating expenses Total $ $ |
LIABILITIES SUBJECT TO COMPRO51
LIABILITIES SUBJECT TO COMPROMISE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
LIABILITIES SUBJECT TO COMPROMISE | |
Schedule of liabilities subject to compromise | Predecessor July 9, 2014 2007 Credit Facility $ $100 Million Term Loan Facility $253 Million Term Loan Facility Interest payable Terminated interest rate swap liability Convertible senior note payable Bond coupon interest payable Lease obligation Pre-petition accounts payable Total $ |
REORGANIZATION ITEMS, NET (Tabl
REORGANIZATION ITEMS, NET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
REORGANIZATION ITEMS, NET | |
Schedule of Reorganization items, net | Successor Predecessor Year Ended December 31, 2015 Period from July 9 to December 31, 2014 Period from January 1 to July 9, 2014 (As Reported) Period from January 1 to July 9, 2014 Adjustment (c) Period from January 1 to July 9, 2014 (As Restated) Professional fees incurred $ $ $ $ — $ Trustee fees incurred — Total reorganization fees $ $ $ $ — $ Gain on settlement of liabilities subject to compromise $ — $ — $ ) $ $ — Net gain on debt and equity discharge and issuance — — ) — Gain on settlement of liabilities subject to compromise in exchange for equity issuance, net (a) — — — ) ) Fresh-start reporting adjustments (b) — — ) Total fresh-start adjustment $ — $ — $ ) $ $ Total reorganization items, net $ $ $ ) $ $ (a) For determination of this amount see footnote (a), subnote 1. in Note 1 under the table “Fresh-Start Adjustments.” (b) For determination of this amount see footnote (c) in Note 1 under the table “Fresh-Start Adjustments.” (c) See Note 25 — Restatement of Consolidated Financial Statements of the Predecessor Company. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restricted Stock Units | |
Nonvested Stock Awards | |
Summary of nonvested stock awards | The table below summarized the Successor Company’s RSUs for the year ended December 31, 2015: Number of RSUs Weighted Average Grant Date Price Outstanding at January 1, 2015 - Successor — $ — Granted Vested ) Forfeited — — Outstanding at December 31, 2015 - Successor $ The following table summarizes certain information of the RSUs unvested and vested as of December 31, 2015: Unvested RSUs December 31, 2015 Vested RSUs December 31, 2015 Weighted Weighted Average Weighted Number of RSUs Average Grant Date Price Remaining Contractual Life Number of RSUs Average Grant Date Price $ $ |
Schedule of nonvested stock amortization expense | Successor Year Ended December 31, 2015 Period from July 9 to December 31, 2014 General, administrative and management fees $ $ — |
2014 MIP Plan | |
Nonvested Stock Awards | |
Summary of nonvested stock awards | Number of Shares Weighted Average Grant Date Price Outstanding at July 9, 2014 - Successor — $ — Granted Vested — — Forfeited — — Outstanding at December 31, 2014 - Successor $ Number of Shares Weighted Average Grant Date Price Outstanding at January 1, 2015 - Successor $ Granted — — Vested ) Forfeited — — Outstanding at December 31, 2015 - Successor $ |
Schedule of nonvested stock amortization expense | Successor Year Ended December 31, Period from July 9 to December 31, 2015 2014 General, administrative and management fees $ $ |
Summary of warrant activity and warrants outstanding | Number of Warrants Weighted Average Exercise Price Weighted Average Fair Value Outstanding at July 9, 2014 - Successor — $ — $ — Granted Exercisable — — — Exercised — — — Forfeited — — — Outstanding at December 31, 2014 - Successor $ $ Number of Warrants Weighted Average Exercise Price Weighted Average Fair Value Outstanding at January 1, 2015 - Successor $ $ Granted — — — Exercisable ) Exercised — — — Forfeited — — — Outstanding at December 31, 2015 - Successor $ $ Warrants Outstanding, December 31, 2015 Warrants Exercisable, December 31, 2015 Weighted Weighted Weighted Average Weighted Average Weighted Average Remaining Average Remaining Average Number of Exercise Contractual Number of Exercise Contractual Exercise Price Warrants Price Life Warrants Price Life $ $ $ |
2014 MIP Plan | Restricted shares | |
Nonvested Stock Awards | |
Schedule of nonvested stock amortization expense | Successor Year Ended December 31, 2015 Period from July 9 to December 31, 2014 General, administrative and management fees $ $ |
Baltic Trading Plan | |
Nonvested Stock Awards | |
Summary of nonvested stock awards | Year Ended December 31, 2015 2014 2013 Number of Baltic Trading Common Shares Weighted Average Grant Date Price Number of Baltic Trading Common Shares Weighted Average Grant Date Price Number of Baltic Trading Common Shares Weighted Average Grant Date Price Outstanding at January 1 $ $ $ Granted — — Vested ) ) ) Forfeited — — — — — — Outstanding at December 31 — $ — $ $ |
Schedule of nonvested stock amortization expense | Successor Predecessor Year Period from Period from Year Ended July 9 to January 1 to Ended December 31, December 31, July 9, December 31, 2015 2014 2014 2013 General, administrative and management fees $ $ $ $ |
Predecessor | 2005 and 2012 GS&T Plans | |
Nonvested Stock Awards | |
Summary of nonvested stock awards | Predecessor Period from January 1 to July 9, 2014 Number of Shares Weighted Average Grant Date Price Outstanding at January 1, 2014 - Predecessor $ Granted — — Vested ) Forfeited — — Outstanding at July 9, 2014 - Predecessor — $ — Predecessor Year Ended December 31, 2013 Number of Shares Weighted Average Grant Date Price Outstanding at January 1 - Predecessor $ Granted Vested ) Forfeited ) Outstanding at December 31 - Predecessor $ |
Schedule of nonvested stock amortization expense | Predecessor Period from January 1 to July 9, Year Ended December 31, 2014 2013 General, administrative and management fees $ $ |
RESTATEMENT OF CONSOLIDATED F54
RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS OF THE PREDECESSOR COMPANY (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Predecessor | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Schedule of restatement corrections | Consolidated Statement of Operations (U.S. Dollars in Thousands, Except for Earnings Per Share and Share Data) Predecessor Predecessor Period from January 1 to July 9, 2014 As Reported Adjustment Period from January 1 to July 9, 2014 As Restated Loss before reorganization items, net $ ) — $ ) Reorganization items, net )(a) ) (Loss) income before income taxes ) ) Income tax expense ) — ) Net (loss) income ) ) Less: Net loss attributable to noncontrolling interest ) )(b) ) Net (loss) income attributable to Genco Shipping & Trading Limited $ $ ) $ ) Net (loss) income per share-basic $ N/A $ ) Net (loss) income per share-diluted $ N/A $ ) Weighted average common shares outstanding-basic N/A Weighted average common shares outstanding-diluted N/A Dividends declared per share $ — N/A $ — (a) The adjustment is the result of errors in the Company’s prior accounting for the following transactions associated with the application of fresh—start accounting: Adjustment Discharge of Predecessor equity <1> $ ) Issuance of Successor equity <2> ) Recording of goodwill in fresh-start accounting <3> Total $ ) <1> The accounting consequences related to the discharge of Predecessor equity were previously reported as a component in the computation of “Reorganization items, net”. The adjustment is to exclude the accounting consequences related to the discharge of Predecessor equity from the computation of “Reorganization items, net”. <2> The accounting consequences related to the issuance of Successor equity were previously excluded as a component in the computation of “Reorganization items, net”. The adjustment is to include from the accounting consequences related to the issuance of Successor equity in the computation of “Reorganization items, net”. <3> The accounting consequences related to the recognition of goodwill were previously excluded as a component in the computation of “Reorganization items, net”. The adjustment is to include the accounting consequences related to the establishment of goodwill in the computation of “Reorganization items, net”. (b) The adjustment is the result of errors in the Company’s prior accounting for the consequences to non-controlling interests of certain transactions associated with the application of fresh-start accounting. Consolidated Statement of Comprehensive Loss (U.S. Dollars in Thousands) Predecessor Predecessor Period from January 1 to July 9, 2014 As Reported Adjustment Period from January 1 to July 9, 2014 As Restated Net (loss) income $ $ ) ) Change in unrealized (loss) gain on investments ) — ) Unrealized gain on cash flow hedges, net — Other comprehensive (loss) income ) — ) Comprehensive (loss) income ) ) Less: Comprehensive loss attributable to noncontrolling interest ) ) ) Comprehensive (loss) income attributable to Genco Shipping & Trading Limited $ $ ) $ ) In addition, the effect of correcting for these errors resulted in the restatement of: · The previously reported components of Reorganization items, net — see Note 20; · The following previously reported financial information included in the column “Debt Discharge and Equity Issuance” in the table “Fresh-Start Adjustments” in Note 1: Debt Discharge and Equity Issuance (as reported) Adjustment Debt Discharge and Equity Issuance (a) (as restated) Assets Current assets: Cash and cash equivalents $ $ — $ Restricted cash — — — Due from charterers, net — — — Prepaid expenses and other current assets — — — Time charters acquired — — — Total current assets — Noncurrent assets: Vessels, net — — — Deposits on vessels — — — Deferred drydock, net — — — Deferred financing costs, net ) — ) Fixed assets, net — — — Other noncurrent assets — — — Restricted cash — — — Investments — — — Goodwill — — — Total noncurrent assets ) — ) Total assets $ $ — $ Liabilities and Equity Current liabilities not subject to compromise: Accounts payable and accrued expenses $ ) $ — $ ) Current portion of long-term debt — — — Deferred revenue — — — Time charters acquired — — — Total current liabilities not subject to compromise ) — ) Noncurrent liabilities not subject to compromise: Long-term lease obligations — — — Long-term debt — — — Total noncurrent liabilities not subject to compromises — — — Total liabilities subject to compromise ) — ) Total liabilities ) — ) Equity: Genco Shipping & Trading Limited shareholders’ equity: Predecessor Common stock ) — ) Predecessor Additional paid-in capital ) — ) Successor Common stock — Successor Additional paid-in capital — Accumulated other comprehensive income ) ) Retained (deficit) earnings ) Total Genco Shipping & Trading Limited shareholders’ equity ) Noncontrolling interest ) — Total equity — Total liabilities and equity $ $ — $ · The following previously reported financial information included in the column “Revaluation of Assets and Liabilities” in the table “Fresh-Start Adjustments” in Note 1: Revaluation of Assets and Liabilities (as reported) Adjustment Revaluation of Assets and Liabilities (as restated) Assets Current assets: Cash and cash equivalents $ — $ — $ — Restricted cash — — — Due from charterers, net — — — Prepaid expenses and other current assets ) — ) Time charters acquired — Total current assets — Noncurrent assets: Vessels, net ) — ) Deposits on vessels — Deferred drydock, net ) — ) Deferred financing costs, net — — — Fixed assets, net ) — ) Other noncurrent assets — — — Restricted cash — — — Investments — — — Goodwill — Total noncurrent assets ) — ) Total assets $ ) $ — $ ) Liabilities and Equity Current liabilities not subject to compromise: Accounts payable and accrued expenses $ — $ — $ — Current portion of long-term debt — — — Deferred revenue — — — Time charters acquired ) — ) Total current liabilities not subject to compromise ) — ) Noncurrent liabilities not subject to compromise: Long-term lease obligations ) — ) Long-term debt — — — Total noncurrent liabilities not subject to compromises ) — ) Total liabilities subject to compromise — — — Total liabilities ) — ) Equity: Genco Shipping & Trading Limited shareholders’ equity: — — — Predecessor Common stock — — — Predecessor Additional paid-in capital — — — Successor Common stock — — — Successor Additional paid-in capital — — — Accumulated other comprehensive income ) — Retained (deficit) earnings ) ) Total Genco Shipping & Trading Limited shareholders’ equity ) ) Noncontrolling interest — ) ) Total equity ) — ) Total liabilities and equity $ ) $ — $ ) |
UNAUDITED QUARTERLY RESULTS O55
UNAUDITED QUARTERLY RESULTS OF OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
UNAUDITED QUARTERLY RESULTS OF OPERATIONS | |
Schedule of unaudited quarterly results of operations | 2015 Successor Quarter Ended (In thousands, except share and per share amounts) March 31 June 30 September 30 December 31 Voyage Revenues $ $ $ $ Operating loss ) ) ) ) Net loss ) ) ) ) Net loss attributable to noncontrolling interest ) ) ) — Net loss attributable to Genco Shipping & Trading Limited ) ) ) ) Net loss per share - basic (1) $ ) $ ) $ ) $ ) Net loss per share - diluted (1) $ ) $ ) $ ) $ ) Weighted average common shares outstanding - basic Weighted average common shares outstanding - diluted 2014 Predecessor Successor Period from Period from Quarter Ended Quarter Ended July 1 to July 9 July 9 to December 31 (In thousands, except share and per share amounts) March 31 June 30 (restated) September 30 (restated) Voyage Revenues $ $ $ $ $ Operating loss ) ) ) ) ) Net loss ) ) ) ) ) Net loss attributable to noncontrolling interest ) ) ) ) ) Net loss attributable to Genco Shipping & Trading Limited ) ) ) ) ) Net loss per share - basic (1) $ ) $ ) $ ) $ ) $ ) Net loss per share - diluted (1) $ ) $ ) $ ) $ ) $ ) Weighted average common shares outstanding - basic Weighted average common shares outstanding - diluted (1) Amounts may not total to annual loss because each quarter and year are calculated separately based on basic and diluted weighted-average common shares outstanding during that period. |
GENERAL INFORMATION (Details)
GENERAL INFORMATION (Details) $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2015USD ($)item | Jul. 14, 2015USD ($) | Dec. 31, 2014USD ($) | Aug. 30, 2013USD ($) | Aug. 01, 2012USD ($) | Dec. 21, 2011USD ($) | Aug. 20, 2010USD ($) | Aug. 12, 2010USD ($) | |
Line of Credit Facility | ||||||||
Number of credit facilities | item | 8 | |||||||
Secured Debt | $253 Million Term Loan Facility | ||||||||
Line of Credit Facility | ||||||||
Maximum borrowing capacity | $ 253,000 | $ 253,000 | ||||||
Secured Debt | $22 Million Term Loan Facility | ||||||||
Line of Credit Facility | ||||||||
Maximum borrowing capacity | 22,000 | $ 22,000 | 22,000 | |||||
Secured Debt | $100 Million Term Loan Facility | ||||||||
Line of Credit Facility | ||||||||
Maximum borrowing capacity | 100,000 | 100,000 | ||||||
Line of Credit facility | $148 Million Credit Facility | ||||||||
Line of Credit Facility | ||||||||
Maximum borrowing capacity | 148,000 | $ 148,000 | $ 148,000 | |||||
Predecessor | Secured Debt | $253 Million Term Loan Facility | ||||||||
Line of Credit Facility | ||||||||
Maximum borrowing capacity | 253,000 | $ 253,000 | ||||||
Predecessor | Secured Debt | $22 Million Term Loan Facility | ||||||||
Line of Credit Facility | ||||||||
Maximum borrowing capacity | 22,000 | $ 22,000 | ||||||
Predecessor | Secured Debt | $100 Million Term Loan Facility | ||||||||
Line of Credit Facility | ||||||||
Maximum borrowing capacity | $ 100,000 | |||||||
Predecessor | Line of Credit facility | $253 Million Term Loan Facility | ||||||||
Line of Credit Facility | ||||||||
Maximum borrowing capacity | $ 253,000 | $ 253,000 | ||||||
Predecessor | Line of Credit facility | $100 Million Term Loan Facility | ||||||||
Line of Credit Facility | ||||||||
Maximum borrowing capacity | $ 100,000 |
GENERAL INFORMATION (Details 2)
GENERAL INFORMATION (Details 2) $ in Thousands | Apr. 07, 2015USD ($)itemshares | Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Jul. 17, 2015 |
Business Acquisition [Line Items] | ||||
Equity effect of purchase of entities under common control | $ 590 | |||
Baltic Trading Merger | ||||
Business Acquisition [Line Items] | ||||
Shares issued as purchase consideration | shares | 0.216 | |||
Ownership interest upon merger completion (as a percent) | 84.50% | |||
Percentage ownership by others in merged company | 15.50% | |||
Gain (loss) recognized | $ 0 | |||
Baltic Trading | Single Purpose Entities | Baltic Tiger and Baltic Lion | ||||
Business Acquisition [Line Items] | ||||
Number of single purpose entities | item | 2 | |||
Number of vessels owned by each entity | item | 1 | |||
Purchase price | $ 68,500 | |||
First-mortgage debt assumed | $ 40,563 | |||
Equity effect of purchase of entities under common control | $ 590 |
GENERAL INFORMATION (Details 3)
GENERAL INFORMATION (Details 3) - USD ($) $ / shares in Units, $ in Thousands | Jul. 09, 2014 | Dec. 31, 2015 | Apr. 21, 2014 | Jul. 27, 2010 |
Chapter 11 | ||||
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure | ||||
Distributable Value | $ 1,230,000 | |||
Previous period covered under precedent transaction methodology | 5 years | |||
2007 Credit Facility | Chapter 11 | ||||
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure | ||||
Bankruptcy claims settled by conversion into shares of entity (as a percent) | 100.00% | |||
$253 Million Term Loan Facility | ||||
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure | ||||
Maximum borrowing capacity | $ 253,000 | |||
$253 Million Term Loan Facility | Chapter 11 | ||||
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure | ||||
Maximum borrowing capacity | $ 253,000 | |||
$100 Million Term Loan Facility | ||||
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure | ||||
Maximum borrowing capacity | $ 100,000 | |||
$100 Million Term Loan Facility | Chapter 11 | ||||
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure | ||||
Maximum borrowing capacity | $ 100,000 | |||
Common Stock | Chapter 11 | ||||
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure | ||||
New Genco MIP Primary Equity shares distribution as percentage of new stock | 1.80% | |||
Minimum percentage of new stock providing demand and piggyback registration rights under the registration rights agreement | 10.00% | |||
Common Stock | 2007 Credit Facility | Chapter 11 | ||||
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure | ||||
New stock issued for bankruptcy claims settlement (as a percent) | 81.10% | |||
Discounted Cash Flow Methodology Valuation Technique | Chapter 11 | ||||
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure | ||||
Interest rate assumed for estimating fair value of the liability component (as a percent) | 10.10% | |||
Projection period | 4 years | |||
2010 Notes | Chapter 11 | ||||
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure | ||||
Bankruptcy claims settled by conversion into shares of entity (as a percent) | 100.00% | |||
2010 Notes | Common Stock | Chapter 11 | ||||
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure | ||||
New stock issued for bankruptcy claims settlement (as a percent) | 8.40% | |||
Backstopped rights offering | Common Stock | Chapter 11 | ||||
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure | ||||
Percentage of new stock offered under offering | 8.70% | |||
Aggregate subscription price | $ 100,000 | |||
Backstopped rights offering | Common Stock | 2007 Credit Facility | Chapter 11 | ||||
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure | ||||
Maximum percentage of subscription of new stock under offering | 80.00% | |||
Backstopped rights offering | 2010 Notes | Chapter 11 | ||||
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure | ||||
Maximum percentage of subscription of new stock under offering | 20.00% | |||
New Genco Equity Warrants | Chapter 11 | ||||
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure | ||||
Subscription price (in dollars per share) | $ 20.99 | |||
Number of warrants issued for old common stock of Genco | 3,938,298 | |||
Number of warrants not exercised | 3,936,761 | |||
Class of Warrant or Right Term | 7 years | |||
New Genco Equity Warrants | Common Stock | Chapter 11 | ||||
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure | ||||
Number of shares of new stock in which each warrant or right can be converted | 1 | |||
Warrants exercisable as percentage of new stock | 6.00% | |||
Predecessor | 2007 Credit Facility | Chapter 11 | GS&T and wholly-owned subsidiaries excluding Baltic Trading Limited | ||||
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure | ||||
Long-term debt | $ 1,055,912 | |||
Predecessor | $253 Million Term Loan Facility | Chapter 11 | GS&T and wholly-owned subsidiaries excluding Baltic Trading Limited | ||||
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure | ||||
Term loan facility floating rate debt | 175,718 | |||
Predecessor | $100 Million Term Loan Facility | Chapter 11 | GS&T and wholly-owned subsidiaries excluding Baltic Trading Limited | ||||
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure | ||||
Term loan facility floating rate debt | 73,561 | |||
Predecessor | Interest rate swap | Chapter 11 | GS&T and wholly-owned subsidiaries excluding Baltic Trading Limited | ||||
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure | ||||
Outstanding amount of derivatives | 5,622 | |||
Predecessor | 2010 Notes | ||||
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure | ||||
Interest rate on convertible notes (as a percent) | 5.00% | |||
Predecessor | 2010 Notes | Chapter 11 | GS&T and wholly-owned subsidiaries excluding Baltic Trading Limited | ||||
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure | ||||
Principal amount of the 2010 Notes | $ 125,000 | |||
Interest rate on convertible notes (as a percent) | 5.00% | |||
Minimum | Chapter 11 | ||||
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure | ||||
Distributable Value | $ 1,100,000 | |||
Maximum | Chapter 11 | ||||
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure | ||||
Distributable Value | $ 1,400,000 |
GENERAL INFORMATION (Details 4)
GENERAL INFORMATION (Details 4) - USD ($) $ in Thousands | 6 Months Ended | |||
Jul. 09, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 10, 2014 | |
Fresh-Start Adjustment, Increase (Decrease), Current Assets | ||||
Cash and cash equivalents | $ 136,077 | |||
Restricted cash | 9,975 | |||
Due from charterers, net | 13,194 | |||
Prepaid expenses and other current assets | 30,759 | |||
Time charters acquired | 450 | |||
Total current assets | 190,455 | |||
Noncurrent assets: | ||||
Vessels, net | 1,538,849 | |||
Deposits on vessels | 30,975 | |||
Deferred drydock, net | 188 | |||
Deferred financing costs, net | 7,060 | |||
Fixed assets, net | 610 | |||
Other noncurrent assets | 514 | |||
Restricted cash | 300 | |||
Investments | 51,804 | |||
Goodwill | 166,067 | |||
Total non current assets | 1,796,367 | |||
Total assets | 1,986,822 | |||
Current liabilities not subject to compromise: | ||||
Accounts payable and accrued expenses | 65,725 | |||
Current portion of long-term debt | 32,242 | |||
Deferred revenue | 997 | |||
Total current liabilities not subject to compromise | 98,964 | |||
Noncurrent liabilities not subject to compromise: | ||||
Long-term debt | 375,789 | |||
Total noncurrent liabilities not subject to compromises | 375,789 | |||
Total liabilities | 474,753 | |||
Equity: | ||||
Common stock | 603 | |||
Additional paid-in capital | 1,232,397 | |||
Total Genco Shipping & Trading Limited shareholders' equity | 1,233,000 | |||
Noncontrolling interest | 279,069 | |||
Total equity | 1,512,069 | |||
Total liabilities and equity | 1,986,822 | |||
Long-term debt | $ 395,811 | |||
Deferred revenue | $ 1,058 | 1,397 | ||
Accounts payable and accrued expenses | 27,467 | 28,217 | ||
Noncontrolling interest | 248,573 | |||
Total current assets | 172,529 | 130,326 | ||
Vessels, net | 1,508,221 | 1,532,843 | ||
Deposits on vessels | 0 | 25,593 | ||
Deferred drydock, net | 16,177 | 6,234 | ||
Deferred financing costs, net | 12,705 | 10,271 | ||
Fixed assets, net | 1,286 | 701 | ||
Other noncurrent assets | 514 | 514 | ||
Restricted cash | 315 | 19,945 | ||
Investments | $ 12,327 | $ 26,486 | ||
$100 Million Term Loan Facility | ||||
Equity: | ||||
Maximum borrowing capacity | 100,000 | |||
$253 Million Term Loan Facility | ||||
Equity: | ||||
Maximum borrowing capacity | 253,000 | |||
Discharge of Debt | ||||
Fresh-Start Adjustment, Increase (Decrease), Current Assets | ||||
Cash and cash equivalents | 87,526 | |||
Total current assets | 87,526 | |||
Noncurrent assets: | ||||
Deferred financing costs, net | (11,893) | |||
Total non current assets | (11,893) | |||
Total assets | 75,633 | |||
Current liabilities not subject to compromise: | ||||
Accounts payable and accrued expenses | (1,086) | |||
Total current liabilities not subject to compromise | (1,086) | |||
Noncurrent liabilities not subject to compromise: | ||||
Total liabilities subject to compromise | (1,194,687) | |||
Total liabilities | (1,195,773) | |||
Equity: | ||||
Common stock | 603 | |||
Additional paid-in capital | 1,232,397 | |||
Accumulated other comprehensive income | (30,357) | |||
Retained (deficit) earnings | 918,338 | |||
Total Genco Shipping & Trading Limited shareholders' equity | 1,271,406 | |||
Total equity | 1,271,406 | |||
Total liabilities and equity | 75,633 | |||
Reclassification to retained (deficit) earnings related to the gain associated with the Company's investments | 34,931 | |||
Reclassification of initial equity to accounts payable | 900 | |||
Proceeds from rights offering | 100,000 | |||
Discharge of Debt | 2007 Credit Facility | ||||
Equity: | ||||
Interest payable classified as liabilities subject to compromise | 1,772 | |||
Discharge of Debt | Amended and Restated Term Loan Facility | ||||
Equity: | ||||
Payment of deferred financing fees | 3,490 | |||
Discharge of Debt | $100 Million Term Loan Facility | ||||
Equity: | ||||
Interest payable classified as liabilities subject to compromise | 59 | |||
Line of Credit Facility Unpaid Amount | 1,923 | |||
Discharge of Debt | $253 Million Term Loan Facility | ||||
Equity: | ||||
Interest payable classified as liabilities subject to compromise | 156 | |||
Line of Credit Facility Unpaid Amount | 5,075 | |||
Reinstatement Of Liabilities | ||||
Current liabilities not subject to compromise: | ||||
Accounts payable and accrued expenses | 6,478 | |||
Current portion of long-term debt | 27,992 | |||
Total current liabilities not subject to compromise | 34,470 | |||
Noncurrent liabilities not subject to compromise: | ||||
Long-term debt | 214,289 | |||
Total noncurrent liabilities not subject to compromises | 214,289 | |||
Total liabilities subject to compromise | (248,759) | |||
Equity: | ||||
Lease obligations | 815 | |||
Pre-petition accounts payable | 41 | |||
Reinstatement Of Liabilities | DNB Bank ASA | ||||
Equity: | ||||
Termination of interest rate swap | 5,622 | |||
Reinstatement Of Liabilities | $100 Million Term Loan Facility | ||||
Noncurrent liabilities not subject to compromise: | ||||
Long-term debt | 63,946 | |||
Equity: | ||||
Long-term debt, current | 7,692 | |||
Reinstatement Of Liabilities | $253 Million Term Loan Facility | ||||
Noncurrent liabilities not subject to compromise: | ||||
Long-term debt | 150,343 | |||
Equity: | ||||
Long-term debt, current | 20,300 | |||
Revaluation Of Assets And Liabilities | ||||
Fresh-Start Adjustment, Increase (Decrease), Current Assets | ||||
Prepaid expenses and other current assets | (41) | |||
Time charters acquired | 450 | |||
Total current assets | 409 | |||
Noncurrent assets: | ||||
Vessels, net | (1,065,882) | |||
Deposits on vessels | 2,317 | |||
Deferred drydock, net | (16,396) | |||
Fixed assets, net | (3,443) | |||
Goodwill | 166,067 | |||
Total non current assets | (917,337) | |||
Total assets | (916,928) | |||
Current liabilities not subject to compromise: | ||||
Time charters acquired | (16) | |||
Total current liabilities not subject to compromise | (16) | |||
Noncurrent liabilities not subject to compromise: | ||||
Long-term lease obligations | (2,670) | |||
Total noncurrent liabilities not subject to compromises | (2,670) | |||
Total liabilities | (2,686) | |||
Equity: | ||||
Retained (deficit) earnings | (860,875) | |||
Total Genco Shipping & Trading Limited shareholders' equity | (860,875) | |||
Noncontrolling interest | (53,367) | |||
Total equity | (914,242) | |||
Total liabilities and equity | (916,928) | |||
Vessels, net adjustment | 1,083,404 | |||
Prepaid and other current assets fair value adjustment | 138 | |||
Value of shares issued to pre-petition claimants | 1,133,000 | |||
Proceeds from rights offering | 100,000 | |||
Distributable Value | 1,233,000 | |||
Current portion of long-term debt | 32,242 | |||
Long-term debt | 375,789 | |||
Estimated fair value of debt | 408,031 | |||
Deferred revenue | 997 | |||
Accounts payable and accrued expenses | 65,725 | |||
Estimated fair value of non-debt liabilities | 66,722 | |||
Noncontrolling interest | 279,069 | |||
Reorganization value of assets | 1,986,822 | |||
Estimated fair value of assets (excluding goodwill) (a) | (1,820,755) | |||
Goodwill, Total | 166,067 | |||
Total current assets | 190,455 | |||
Vessels, net | 1,538,849 | |||
Deposits on vessels | 30,975 | |||
Deferred drydock, net | 188 | |||
Deferred financing costs, net | 7,060 | |||
Fixed assets, net | 610 | |||
Other noncurrent assets | 514 | |||
Restricted cash | 300 | |||
Investments | 51,804 | |||
Total assets excluding goodwill | 1,820,755 | |||
Revaluation Of Assets And Liabilities | Baltic Trading | ||||
Equity: | ||||
Noncontrolling interest asset revaluation adjustment | 74,355 | |||
Noncontrolling interest, goodwill adjustment | 24,022 | |||
Noncontrolling interest, additional revaluation adjustment | 3,034 | |||
Exchange of Stock for Stock | Maximum | ||||
Equity: | ||||
Percentage of shares received of the emerging entity (as a percent) | 50.00% | |||
Predecessor | ||||
Fresh-Start Adjustment, Increase (Decrease), Current Assets | ||||
Cash and cash equivalents | 48,551 | |||
Restricted cash | 9,975 | |||
Due from charterers, net | 13,194 | |||
Prepaid expenses and other current assets | 30,800 | |||
Total current assets | 102,520 | |||
Noncurrent assets: | ||||
Vessels, net | 2,604,731 | |||
Deposits on vessels | 28,658 | |||
Deferred drydock, net | 16,584 | |||
Deferred financing costs, net | 18,953 | |||
Fixed assets, net | 4,053 | |||
Other noncurrent assets | 514 | |||
Restricted cash | 300 | |||
Investments | 51,804 | |||
Total non current assets | 2,725,597 | |||
Total assets | 2,828,117 | |||
Current liabilities not subject to compromise: | ||||
Accounts payable and accrued expenses | 60,333 | |||
Current portion of long-term debt | 4,250 | |||
Deferred revenue | 997 | |||
Time charters acquired | 16 | |||
Total current liabilities not subject to compromise | 65,596 | |||
Noncurrent liabilities not subject to compromise: | ||||
Long-term lease obligations | 2,670 | |||
Long-term debt | 161,500 | |||
Total noncurrent liabilities not subject to compromises | 164,170 | |||
Total liabilities subject to compromise | 1,443,446 | |||
Total liabilities | 1,673,212 | |||
Equity: | ||||
Common stock | 445 | |||
Additional paid-in capital | 849,130 | |||
Accumulated other comprehensive income | 30,357 | |||
Retained (deficit) earnings | (57,463) | |||
Total Genco Shipping & Trading Limited shareholders' equity | 822,469 | |||
Noncontrolling interest | 332,436 | |||
Total equity | 1,154,905 | |||
Total liabilities and equity | 2,828,117 | |||
The elimination of deferred financing fees associated with the discharged obligations | (15,383) | |||
The elimination of accumulated other comprehensive income related to interest rate swaps associated with the discharged obligations | (4,574) | |||
Issuance of Successor common stock | (1,133,900) | |||
Net gain on the discharge of Predecessor liabilities related to liabilities subject to compromise and associated issuance of Successor equity | 33,832 | |||
Proceeds from rights offering | 100,000 | |||
Goodwill, Total | 166,067 | |||
Predecessor | Discharge of Debt | ||||
Equity: | ||||
Common stock | (445) | |||
Additional paid-in capital | (849,130) | |||
Predecessor | Discharge of Debt | 2010 Notes | ||||
Equity: | ||||
Discharge of debt outstanding | 117,473 | |||
Discharge of coupon interest on the 2010 Notes liability | 1,105 | |||
Predecessor | Discharge of Debt | 2007 Credit Facility | ||||
Equity: | ||||
Discharge of debt outstanding | 1,055,912 | |||
Discharge of the long-term interest payable due pursuant to the 2007 Credit Facility | 13,199 | |||
Predecessor | Revaluation Of Assets And Liabilities | ||||
Fresh-Start Adjustment, Increase (Decrease), Current Assets | ||||
Prepaid expenses and other current assets | 179 | |||
Time charters acquired | $ 434 |
GENERAL INFORMATION (Details 5)
GENERAL INFORMATION (Details 5) - item | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Vessels | |||
Number of vessels in the fleet | 70 | 67 | 66 |
Genco Reliance Limited | Genco Reliance | |||
Vessels | |||
Capacity of vessels | 29,952 | ||
Genco Vigour Limited | Genco Vigour | |||
Vessels | |||
Capacity of vessels | 73,941 | ||
Genco Explorer Limited | Genco Explorer | |||
Vessels | |||
Capacity of vessels | 29,952 | ||
Genco Carrier Limited | Genco Carrier | |||
Vessels | |||
Capacity of vessels | 47,180 | ||
Genco Sugar Limited | Genco Sugar | |||
Vessels | |||
Capacity of vessels | 29,952 | ||
Genco Pioneer Limited | Genco Pioneer | |||
Vessels | |||
Capacity of vessels | 29,952 | ||
Genco Progress Limited | Genco Progress | |||
Vessels | |||
Capacity of vessels | 29,952 | ||
Genco Wisdom Limited | Genco Wisdom | |||
Vessels | |||
Capacity of vessels | 47,180 | ||
Genco Success Limited | Genco Success | |||
Vessels | |||
Capacity of vessels | 47,186 | ||
Genco Beauty Limited | Genco Beauty | |||
Vessels | |||
Capacity of vessels | 73,941 | ||
Genco Knight Limited | Genco Knight | |||
Vessels | |||
Capacity of vessels | 73,941 | ||
Genco Leader Limited | Genco Leader | |||
Vessels | |||
Capacity of vessels | 73,941 | ||
Genco Marine Limited | Genco Marine | |||
Vessels | |||
Capacity of vessels | 45,222 | ||
Genco Prosperity Limited | Genco Prosperity | |||
Vessels | |||
Capacity of vessels | 47,180 | ||
Genco Muse Limited | Genco Muse | |||
Vessels | |||
Capacity of vessels | 48,913 | ||
Genco Acheron Limited | Genco Acheron | |||
Vessels | |||
Capacity of vessels | 72,495 | ||
Genco Surprise Limited | Genco Surprise | |||
Vessels | |||
Capacity of vessels | 72,495 | ||
Genco Augustus Limited | Genco Augustus | |||
Vessels | |||
Capacity of vessels | 180,151 | ||
Genco Tiberius Limited | Genco Tiberius | |||
Vessels | |||
Capacity of vessels | 175,874 | ||
Genco London Limited | Genco London | |||
Vessels | |||
Capacity of vessels | 177,833 | ||
Genco Titus Limited | Genco Titus | |||
Vessels | |||
Capacity of vessels | 177,729 | ||
Genco Challenger Limited | Genco Challenger | |||
Vessels | |||
Capacity of vessels | 28,428 | ||
Genco Charger Limited | Genco Charger | |||
Vessels | |||
Capacity of vessels | 28,398 | ||
Genco Warrior Limited | Genco Warrior | |||
Vessels | |||
Capacity of vessels | 55,435 | ||
Genco Predator Limited | Genco Predator | |||
Vessels | |||
Capacity of vessels | 55,407 | ||
Genco Hunter Limited | Genco Hunter | |||
Vessels | |||
Capacity of vessels | 58,729 | ||
Genco Champion Limited | Genco Champion | |||
Vessels | |||
Capacity of vessels | 28,445 | ||
Genco Constantine Limited | Genco Constantine | |||
Vessels | |||
Capacity of vessels | 180,183 | ||
Genco Raptor LLC | Genco Raptor | |||
Vessels | |||
Capacity of vessels | 76,499 | ||
Genco Cavalier LLC | Genco Cavalier | |||
Vessels | |||
Capacity of vessels | 53,617 | ||
Genco Thunder LLC | Genco Thunder | |||
Vessels | |||
Capacity of vessels | 76,588 | ||
Genco Hadrian Limited | Genco Hadrian | |||
Vessels | |||
Capacity of vessels | 169,694 | ||
Genco Commodus Limited | Genco Commodus | |||
Vessels | |||
Capacity of vessels | 169,025 | ||
Genco Maximus Limited | Genco Maximus | |||
Vessels | |||
Capacity of vessels | 169,025 | ||
Genco Claudius Limited | Genco Claudius | |||
Vessels | |||
Capacity of vessels | 169,025 | ||
Genco Bay Limited | Genco Bay | |||
Vessels | |||
Capacity of vessels | 34,296 | ||
Genco Ocean Limited | Genco Ocean | |||
Vessels | |||
Capacity of vessels | 34,409 | ||
Genco Avra Limited | Genco Avra | |||
Vessels | |||
Capacity of vessels | 34,391 | ||
Genco Mare Limited | Genco Mare | |||
Vessels | |||
Capacity of vessels | 34,428 | ||
Genco Spirit Limited | Genco Spirit | |||
Vessels | |||
Capacity of vessels | 34,432 | ||
Genco Aquitaine Limited | Genco Aquitaine | |||
Vessels | |||
Capacity of vessels | 57,981 | ||
Genco Ardennes Limited | Genco Ardennes | |||
Vessels | |||
Capacity of vessels | 57,981 | ||
Genco Auvergne Limited | Genco Auvergne | |||
Vessels | |||
Capacity of vessels | 57,981 | ||
Genco Bourgogne Limited | Genco Bourgogne | |||
Vessels | |||
Capacity of vessels | 57,981 | ||
Genco Brittany Limited | Genco Brittany | |||
Vessels | |||
Capacity of vessels | 57,981 | ||
Genco Languedoc Limited | Genco Languedoc | |||
Vessels | |||
Capacity of vessels | 57,981 | ||
Genco Loire Limited | Genco Loire | |||
Vessels | |||
Capacity of vessels | 53,416 | ||
Genco Lorraine Limited | Genco Lorraine | |||
Vessels | |||
Capacity of vessels | 53,416 | ||
Genco Normandy Limited | Genco Normandy | |||
Vessels | |||
Capacity of vessels | 53,596 | ||
Genco Picardy Limited | Genco Picardy | |||
Vessels | |||
Capacity of vessels | 55,257 | ||
Genco Provence Limited | Genco Provence | |||
Vessels | |||
Capacity of vessels | 55,317 | ||
Genco Pyrenees Limited | Genco Pyrenees | |||
Vessels | |||
Capacity of vessels | 57,981 | ||
Genco Rhone Limited | Genco Rhone | |||
Vessels | |||
Capacity of vessels | 58,018 | ||
Baltic Lion Limited | Baltic Lion | |||
Vessels | |||
Capacity of vessels | 179,185 | ||
Baltic Tiger Limited | Genco Tiger | |||
Vessels | |||
Capacity of vessels | 179,185 | ||
Baltic Leopard Limited | Baltic Leopard | |||
Vessels | |||
Capacity of vessels | 53,447 | ||
Baltic Panther Limited | Baltic Panther | |||
Vessels | |||
Capacity of vessels | 53,351 | ||
Baltic Cougar Limited | Baltic Cougar | |||
Vessels | |||
Capacity of vessels | 53,432 | ||
Baltic Jaguar Limited | Baltic Jaguar | |||
Vessels | |||
Capacity of vessels | 53,474 | ||
Baltic Bear Limited | Baltic Bear | |||
Vessels | |||
Capacity of vessels | 177,717 | ||
Baltic Wolf Limited | Baltic Wolf | |||
Vessels | |||
Capacity of vessels | 177,752 | ||
Baltic Wind Limited | Baltic Wind | |||
Vessels | |||
Capacity of vessels | 34,409 | ||
Baltic Cove Limited | Baltic Cove | |||
Vessels | |||
Capacity of vessels | 34,403 | ||
Baltic Breeze Limited | Baltic Breeze | |||
Vessels | |||
Capacity of vessels | 34,386 | ||
Baltic Fox Limited | Baltic Fox | |||
Vessels | |||
Capacity of vessels | 31,883 | ||
Baltic Hare Limited | Baltic Hare | |||
Vessels | |||
Capacity of vessels | 31,887 | ||
Baltic Hornet Limited | Baltic Hornet | |||
Vessels | |||
Capacity of vessels | 63,574 | ||
Baltic Wasp Limited | Baltic Wasp | |||
Vessels | |||
Capacity of vessels | 63,389 | ||
Baltic Scorpion Limited | Baltic Scorpion | |||
Vessels | |||
Capacity of vessels | 63,462 | ||
Baltic Mantis Limited | Baltic Mantis | |||
Vessels | |||
Capacity of vessels | 63,470 |
GENERAL INFORMATION (Details 6)
GENERAL INFORMATION (Details 6) | Oct. 01, 2015USD ($) | Sep. 30, 2015USD ($) | Jan. 31, 2016USD ($)item | Sep. 30, 2015USD ($)item | Dec. 31, 2015 | Dec. 31, 2014shares |
MEP | ||||||
General information | ||||||
Technical services fee per ship per day | $ 650 | $ 750 | ||||
Initial term of provision of technical service | 1 year | |||||
Notice period for cancellation of provision of technical services | 60 days | |||||
Period for termination fee upon change of control | 1 year | |||||
Notice period for cancellation of provision of technical services by company | 60 days | |||||
Payment of technical services fees in arrears | 2,178,000 | $ 261,000 | ||||
Number of vessels sold | item | 5 | 5 | ||||
Termination fee due | $ 296,000,000 | $ 296,000,000 | ||||
Genco Investment LLC | Baltic Trading | ||||||
General information | ||||||
Ownership interest held (as a percent) | 10.85% | |||||
Aggregate voting power held (as a percent) | 64.60% | |||||
Genco Investment LLC | Baltic Trading | Class B stock | ||||||
General information | ||||||
Number of shares owned by Genco Investment LLC (in shares) | shares | 6,356,471 |
SUMMARY OF SIGNIFICANT ACCOUN62
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | Jul. 17, 2015segment | Oct. 04, 2013USD ($)shares | Dec. 31, 2015segmentitem | Dec. 31, 2014USD ($)item$ / item | Jul. 09, 2014USD ($) | Dec. 31, 2015USD ($)item | Dec. 31, 2014item$ / item | Dec. 31, 2013USD ($)itemshares |
SEGMENT INFORMATION | ||||||||
Number of reportable segments | segment | 2 | 1 | ||||||
Voyage expense recognition | ||||||||
Net (gain) loss on purchase and sale of bunker fuel and LCM adjustments | $ 1,616 | $ 8,927 | ||||||
Number of vessels in vessel pools | item | 19 | 13 | 19 | 13 | ||||
Other operating income | ||||||||
Other operating income | $ 530 | $ 0 | ||||||
Predecessor | ||||||||
Voyage expense recognition | ||||||||
Net (gain) loss on purchase and sale of bunker fuel and LCM adjustments | $ 252 | $ 567 | ||||||
Other operating income | ||||||||
Other operating income | 0 | 121 | ||||||
Samsun | ||||||||
Other operating income | ||||||||
Other operating income | $ 530 | |||||||
Korea Line Corporation | ||||||||
Other operating income | ||||||||
Other operating income | $ 0 | |||||||
Korea Line Corporation | Predecessor | ||||||||
Other operating income | ||||||||
Other operating income | $ 0 | $ 21 | ||||||
Number of shares received related to the rehabilitation plan (in shares) | shares | 3,355 | 3,355 | ||||||
Spot Market-Related Time Charter Agreement with Profit Sharing Element | ||||||||
Voyage expense recognition | ||||||||
Floor price (in dollars per unit) | $ / item | 9 | 9 | ||||||
Ceiling price (in dollars per unit) | $ / item | 14 | 14 | ||||||
Allocation of excess profit sharing amount (as a percent) | 50.00% | |||||||
Percentage of average of the daily rates of BHSI used to determine charter agreement rates (as a percent) | 115.00% | |||||||
Spot Market-Related Time Charter Agreement with Profit Sharing Element | Predecessor | ||||||||
Voyage expense recognition | ||||||||
Number of vessels under spot market-related time charters which include a profit-sharing element | item | 4 | |||||||
Clipper Logger Pool and Clipper Sapphire Pool | ||||||||
Voyage expense recognition | ||||||||
Number of vessels in vessel pools | item | 14 | 7 | 14 | 7 | ||||
Bulkhandling Handymax A/S Pool | ||||||||
Voyage expense recognition | ||||||||
Number of vessels in vessel pools | item | 4 | 5 | 4 | 5 | ||||
Navig8 Bulk Pool | ||||||||
Voyage expense recognition | ||||||||
Number of vessels in vessel pools | item | 1 | 1 | 1 | 1 | ||||
Other Income | Korea Line Corporation | Predecessor | ||||||||
Other operating income | ||||||||
Fair value of shares received | $ 100 | $ 100 |
SUMMARY OF SIGNIFICANT ACCOUN63
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) $ in Thousands | Jul. 09, 2014USD ($)$ / item | Sep. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2014USD ($) | Jul. 09, 2014USD ($) | Dec. 31, 2015USD ($)$ / item | Dec. 31, 2013USD ($) |
Due from charterers, net | |||||||
Reserve against the due from charterers | $ 1,588 | $ 1,588 | $ 429 | ||||
Accrual related to estimated customer claims | 662 | 662 | $ 498 | ||||
Vessels, net | |||||||
Estimated useful life | 25 years | ||||||
Depreciation expense | 36,265 | $ 76,395 | |||||
Estimated scrap value (in dollars per lightweight ton) | $ / item | 310 | ||||||
Estimated life of average scrap value of steel | 15 years | ||||||
Decrease in depreciation expense | 1,540 | $ 3,193 | |||||
Fixed assets, net | |||||||
Depreciation and amortization | 36,714 | 79,556 | |||||
Asset Impairment Charges | $ 32,536 | 0 | 39,893 | ||||
Deferred drydocking costs | |||||||
Amortization expense for drydocking | 330 | 2,877 | |||||
Goodwill | |||||||
Goodwill impairment | $ 166,067 | 166,067 | |||||
Loss on disposal of vessels | |||||||
Loss on sale of vessels | 1,210 | ||||||
Genco Marine Limited | Genco Marine | |||||||
Fixed assets, net | |||||||
Asset Impairment Charges | 4,497 | ||||||
Baltic Trading | Baltic Tiger and Baltic Lion | |||||||
Fixed assets, net | |||||||
Asset Impairment Charges | $ 35,396 | ||||||
Minimum | |||||||
Deferred drydocking costs | |||||||
Period for which vessels are required to be drydocked for major repairs and maintenance | 30 months | ||||||
Maximum | |||||||
Deferred drydocking costs | |||||||
Period for which vessels are required to be drydocked for major repairs and maintenance | 60 months | ||||||
Detail of Fixed Assets, Excluding Vessels | |||||||
Fixed assets, net | |||||||
Depreciation and amortization | $ 119 | $ 284 | |||||
Furniture and Fixtures | |||||||
Fixed assets, net | |||||||
Useful lives | 5 years | ||||||
Vessel Equipment | Minimum | |||||||
Fixed assets, net | |||||||
Useful lives | 2 years | ||||||
Vessel Equipment | Maximum | |||||||
Fixed assets, net | |||||||
Useful lives | 15 years | ||||||
Computer equipment | |||||||
Fixed assets, net | |||||||
Useful lives | 3 years | ||||||
Predecessor | |||||||
Vessels, net | |||||||
Depreciation expense | $ 71,756 | $ 133,562 | |||||
Estimated scrap value (in dollars per lightweight ton) | $ / item | 245 | ||||||
Fixed assets, net | |||||||
Depreciation and amortization | 75,952 | 140,743 | |||||
Asset Impairment Charges | 0 | 0 | |||||
Deferred drydocking costs | |||||||
Amortization expense for drydocking | 3,738 | 5,700 | |||||
Goodwill | |||||||
Goodwill | $ 166,067 | 166,067 | |||||
Predecessor | Detail of Fixed Assets, Excluding Vessels | |||||||
Fixed assets, net | |||||||
Depreciation and amortization | $ 458 | $ 1,481 |
SUMMARY OF SIGNIFICANT ACCOUN64
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Jul. 09, 2014 | Dec. 31, 2015 | Dec. 31, 2013 | |
Income Taxes | ||||
Ownership percentage held by each shareholder (as a percent) | 5.00% | |||
Federal tax rate (as a percent) | 4.00% | |||
Taxable income | $ (212,362) | $ (252,547) | ||
Income tax expense | 996 | 1,821 | ||
Total revenue earned | 1,584 | $ 3,175 | ||
Minimum | ||||
Income Taxes | ||||
Percentage of value of outstanding shares owned by the qualified shareholders | 50.00% | |||
Maximum | ||||
Income Taxes | ||||
Combined ownership held by 5% shareholders (as a percent) | 50.00% | |||
Federal tax rate (as a percent) | 35.00% | |||
Percentage of shipping income attributable to transportation that begins or ends in the United States included in United States source shipping income (in hundredths) | 50.00% | |||
Vessel Management Services | ||||
Income Taxes | ||||
Taxable income | 2,178 | $ 3,880 | ||
Income tax expense | 978 | 1,753 | ||
Total revenue earned | 3,893 | 6,410 | ||
Vessel Management Services | Intersegment Elimination | ||||
Income Taxes | ||||
Total revenue earned | (2,309) | (3,235) | ||
Predecessor | ||||
Income Taxes | ||||
Taxable income | $ (1,012,435) | $ (155,123) | ||
Income tax expense | 815 | 1,898 | ||
Total revenue earned | 1,701 | 3,285 | ||
Predecessor | Vessel Management Services | ||||
Income Taxes | ||||
Taxable income | 1,723 | 4,235 | ||
Income tax expense | 776 | 1,864 | ||
Total revenue earned | 3,857 | 7,856 | ||
Predecessor | Vessel Management Services | Intersegment Elimination | ||||
Income Taxes | ||||
Total revenue earned | $ (2,156) | (4,571) | ||
Baltic Trading | United States | ||||
Income Taxes | ||||
Taxable income | 450 | 1,706 | ||
Income tax expense | $ 18 | $ 68 | ||
Baltic Trading | Predecessor | Minimum | ||||
Income Taxes | ||||
Aggregate voting power held (as a percent) | 50.00% | |||
Baltic Trading | Predecessor | United States | ||||
Income Taxes | ||||
Taxable income | $ 965 | 832 | ||
Income tax expense | $ 39 | $ 34 |
SUMMARY OF SIGNIFICANT ACCOUN65
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) | Jul. 10, 2015 | Dec. 31, 2015derivativeitem | Dec. 31, 2014USD ($)derivativecustomeritem | Jul. 09, 2014USD ($)customer | Dec. 31, 2015USD ($)derivativecustomeritem | Dec. 31, 2013USD ($)derivativecustomer |
Concentration Risk | ||||||
Percentage of revenue earned (as a percent) | 100.00% | 100.00% | 100.00% | |||
Number of customers | customer | 44 | 52 | ||||
Total revenue earned | $ 1,584,000 | $ 3,175,000 | ||||
Number of financial institutions with which the entity maintains its cash and cash equivalents | item | 3 | 3 | 3 | |||
Number of interest rate swaps | derivative | 0 | 0 | 0 | |||
Voyage Revenues | ||||||
Concentration Risk | ||||||
Major Customers | customer | 2 | 3 | ||||
Concentration risk percentage (as a percent) | 10.00% | 10.00% | ||||
Voyage Revenues | Cargill International S.A. | ||||||
Concentration Risk | ||||||
Concentration risk percentage (as a percent) | 17.06% | |||||
Voyage Revenues | Swissmarine Services S.A. | ||||||
Concentration Risk | ||||||
Total revenue earned | $ 24.37 | |||||
Concentration risk percentage (as a percent) | 22.52% | |||||
Voyage Revenues | Clipper Group | ||||||
Concentration Risk | ||||||
Total revenue earned | 19.09 | |||||
Voyage Revenues | Pioneer Navigation Ltd | ||||||
Concentration Risk | ||||||
Total revenue earned | $ 13.03 | |||||
Predecessor | ||||||
Concentration Risk | ||||||
Percentage of revenue earned (as a percent) | 100.00% | 100.00% | ||||
Number of customers | customer | 33 | 48 | ||||
Total revenue earned | $ 1,701,000 | $ 3,285,000 | ||||
Number of interest rate swaps | derivative | 4 | |||||
Predecessor | Voyage Revenues | ||||||
Concentration Risk | ||||||
Major Customers | customer | 2 | 3 | ||||
Concentration risk percentage (as a percent) | 10.00% | 10.00% | ||||
Predecessor | Voyage Revenues | Cargill International S.A. | ||||||
Concentration Risk | ||||||
Concentration risk percentage (as a percent) | 19.37% | 21.45% | ||||
Predecessor | Voyage Revenues | Swissmarine Services S.A. | ||||||
Concentration Risk | ||||||
Concentration risk percentage (as a percent) | 20.67% | 18.73% | ||||
Predecessor | Voyage Revenues | Pacific Basin Chartering Ltd. | ||||||
Concentration Risk | ||||||
Concentration risk percentage (as a percent) | 10.30% |
CASH FLOW INFORMATION (Details)
CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Jul. 09, 2014 | Dec. 31, 2015 | Dec. 31, 2013 | |
Non-cash investing and financing activities | ||||
Professional fees and trustee fees recognized in Reorganization items before fresh-start adjustments, net | $ 1,591 | $ 1,085 | ||
Cash paid for professional fees and trustee fees for Reorganization items | 32,794 | 1,351 | ||
Reclassification from deposits on vessels to vessels, net of accumulated depreciation | 9,140 | $ 0 | 25,593 | |
Cash paid for interest | 5,483 | 16,548 | ||
Cash paid for estimated income taxes | 750 | 2,085 | ||
Predecessor | ||||
Non-cash investing and financing activities | ||||
Professional fees and trustee fees recognized in Reorganization items before fresh-start adjustments, net | 35,232 | |||
Cash paid for professional fees and trustee fees for Reorganization items | 2,703 | |||
Reclassification from deposits on vessels to vessels, net of accumulated depreciation | $ 0 | |||
Reclassification of fixed assets to vessel assets | 984 | |||
Cash paid for interest | 40,209 | 75,133 | ||
Cash paid for estimated income taxes | 1,495 | 1,275 | ||
Accounts payable and accrued expenses. | ||||
Non-cash investing and financing activities | ||||
Non-cash investing activities purchase of vessels, including deposits | 464 | 236 | ||
Non-cash investing activities purchase of other fixed assets | 22 | 121 | ||
Non-cash financing activities deferred financing costs | 2,190 | 101 | ||
Reorganization professional and trustee fees incurred | 313 | 48 | ||
Accounts payable and accrued expenses. | Predecessor | ||||
Non-cash investing and financing activities | ||||
Non-cash investing activities purchase of vessels, including deposits | 53 | 618 | ||
Non-cash investing activities purchase of other fixed assets | 20 | 122 | ||
Non-cash financing activities deferred financing costs | 456 | 78 | ||
Reorganization professional and trustee fees incurred | $ 32,529 | |||
Non-cash financing activities common stock issuance costs | 111 | |||
Current Interest Payable | Predecessor | ||||
Non-cash investing and financing activities | ||||
Non-cash financing activities deferred financing costs | $ 13,199 | |||
Prepaid expenses and other current assets | ||||
Non-cash investing and financing activities | ||||
Non-cash investing activities purchase of vessels including deposits included in prepaid expense and other current assets | $ 7 | (14) | ||
Non-cash sale of AFS Securities | $ 148 |
CASH FLOW INFORMATION (Details
CASH FLOW INFORMATION (Details 2) - USD ($) $ in Thousands | Feb. 17, 2016 | Jul. 29, 2015 | Jul. 17, 2015 | Jul. 13, 2015 | Dec. 18, 2014 | Aug. 07, 2014 | Apr. 09, 2014 | Dec. 19, 2013 | May. 16, 2013 | Dec. 13, 2012 | Nov. 07, 2012 | May. 17, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 09, 2014 | Dec. 31, 2015 | Dec. 31, 2013 |
2005 and 2012 GS&T Plans | Predecessor | |||||||||||||||||
Nonvested Stock Awards | |||||||||||||||||
Granted (in shares) | 200,634 | ||||||||||||||||
Vested (in shares) | 880,465 | 407,431 | |||||||||||||||
2014 MIP Plan | |||||||||||||||||
Nonvested Stock Awards | |||||||||||||||||
Granted (in shares) | 1,110,600 | ||||||||||||||||
Vested (in shares) | 370,200 | ||||||||||||||||
Directors | 2012 GS&T Plan | Predecessor | |||||||||||||||||
Nonvested Stock Awards | |||||||||||||||||
Granted (in shares) | 200,634 | ||||||||||||||||
Aggregate fair value | $ 315 | ||||||||||||||||
Directors | 2005 and 2012 GS&T Plans | Predecessor | |||||||||||||||||
Nonvested Stock Awards | |||||||||||||||||
Granted (in shares) | 52,500 | 2,500 | 15,000 | ||||||||||||||
Aggregate fair value | $ 141 | $ 7 | $ 53 | ||||||||||||||
Participating Officers, Directors And Other Management | 2014 MIP Plan | |||||||||||||||||
Nonvested Stock Awards | |||||||||||||||||
Granted (in shares) | 1,110,600 | ||||||||||||||||
Aggregate fair value | $ 22,212 | ||||||||||||||||
Peter C. Georgiopoulos, Chairman of Board | 2005 and 2012 GS&T Plans | Predecessor | |||||||||||||||||
Nonvested Stock Awards | |||||||||||||||||
Granted (in shares) | 100,000 | ||||||||||||||||
Aggregate fair value | $ 268 | ||||||||||||||||
Employees | 2005 and 2012 GS&T Plans | Predecessor | |||||||||||||||||
Nonvested Stock Awards | |||||||||||||||||
Granted (in shares) | 294,175 | ||||||||||||||||
Aggregate fair value | $ 788 | ||||||||||||||||
Restricted Stock Units | Directors | |||||||||||||||||
Nonvested Stock Awards | |||||||||||||||||
Granted (in shares) | 58,215 | 16,188 | 74,403 | ||||||||||||||
Aggregate fair value | $ 416 | $ 113 | |||||||||||||||
Vested (in shares) | 23,286 | 16,188 | 0 | 16,188 | |||||||||||||
MIP Warrants | 2014 MIP Plan | |||||||||||||||||
Nonvested Stock Awards | |||||||||||||||||
Vested (in shares) | 2,852,487 | ||||||||||||||||
MIP Warrants | Participating Officers, Directors And Other Management | 2014 MIP Plan | |||||||||||||||||
Nonvested Stock Awards | |||||||||||||||||
Granted (in shares) | 8,557,461 | ||||||||||||||||
Aggregate fair value | $ 54,436 | ||||||||||||||||
Baltic Trading | Directors | Predecessor | |||||||||||||||||
Nonvested Stock Awards | |||||||||||||||||
Granted (in shares) | 36,345 | 59,680 | |||||||||||||||
Aggregate fair value | $ 225 | $ 225 | |||||||||||||||
Baltic Trading | Peter C. Georgiopoulos, Chairman of Board | |||||||||||||||||
Nonvested Stock Awards | |||||||||||||||||
Granted (in shares) | 700,000 | ||||||||||||||||
Baltic Trading | Peter C. Georgiopoulos, Chairman of Board | Predecessor | |||||||||||||||||
Nonvested Stock Awards | |||||||||||||||||
Granted (in shares) | 539,000 | ||||||||||||||||
Baltic Trading | John Wobensmith, Chief Financial officer | |||||||||||||||||
Nonvested Stock Awards | |||||||||||||||||
Granted (in shares) | 350,000 | ||||||||||||||||
Baltic Trading | John Wobensmith, President and Chief Financial officer | Predecessor | |||||||||||||||||
Nonvested Stock Awards | |||||||||||||||||
Granted (in shares) | 400,000 | ||||||||||||||||
Baltic Trading | Board of Directors Chairman and President and Chief Financial Officer | |||||||||||||||||
Nonvested Stock Awards | |||||||||||||||||
Aggregate fair value | $ 2,615 | ||||||||||||||||
Baltic Trading | Board of Directors Chairman and President and Chief Financial Officer | Predecessor | |||||||||||||||||
Nonvested Stock Awards | |||||||||||||||||
Aggregate fair value | $ 5,371 |
GOODWILL IMPAIRMENT (Details)
GOODWILL IMPAIRMENT (Details) $ in Thousands | Jul. 09, 2014USD ($)item | Dec. 31, 2014USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2015 |
Goodwill | ||||
Period of industry average charter rates for each vessel class | 10 years | |||
Goodwill, Impairment Loss | $ 166,067 | $ 166,067 | ||
Percentage of fair value assets used method | 75.00% | |||
Percentage of public trading price method | 25.00% | |||
Percentage of discounted cash flow method | 0.00% | |||
Predecessor | ||||
Goodwill | ||||
Number of Reporting Units | item | 2 | |||
Goodwill | $ 166,067 |
VESSEL ACQUISITIONS (Details)
VESSEL ACQUISITIONS (Details) $ in Thousands | Dec. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Jul. 09, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2013USD ($) | Jul. 14, 2015USD ($) | Dec. 03, 2013USD ($) | Nov. 13, 2013USD ($)item | Oct. 31, 2013USD ($)item | Aug. 30, 2013USD ($) | Jul. 02, 2013USD ($)item |
VESSEL ACQUISITIONS AND DISPOSITIONS | |||||||||||
Deposits on vessels | $ 25,593 | $ 0 | |||||||||
Time charters acquired | 0 | 0 | |||||||||
Amortization of time charters acquired | (450) | ||||||||||
Time charters acquired | 0 | ||||||||||
Genco Bourgogne, Genco Muse, and Genco Spirit | |||||||||||
VESSEL ACQUISITIONS AND DISPOSITIONS | |||||||||||
Time charters acquired | $ 450 | ||||||||||
Amortization of time charters acquired | (450) | 0 | |||||||||
Baltic Trading | |||||||||||
VESSEL ACQUISITIONS AND DISPOSITIONS | |||||||||||
Capitalized interest associated with new building contracts | 400 | 372 | |||||||||
Baltic Trading | Baltic Wasp | |||||||||||
VESSEL ACQUISITIONS AND DISPOSITIONS | |||||||||||
Final payment for vessel | $ 19,645 | ||||||||||
Predecessor | |||||||||||
VESSEL ACQUISITIONS AND DISPOSITIONS | |||||||||||
Amortization of time charters acquired | 68 | $ 334 | |||||||||
Predecessor | Baltic Trading | |||||||||||
VESSEL ACQUISITIONS AND DISPOSITIONS | |||||||||||
Capitalized interest associated with new building contracts | $ 295 | $ 0 | |||||||||
Predecessor | Agreement to Purchase Capesize Drybulk Vessels | Purchase agreement with SK Shipping Co LTD | Baltic Trading | |||||||||||
VESSEL ACQUISITIONS AND DISPOSITIONS | |||||||||||
Aggregate purchase price | $ 103,000 | ||||||||||
Number of vessels purchased | item | 2 | ||||||||||
Predecessor | Handysize Vessel purchase | Subsidiaries of Clipper Group | Baltic Trading | |||||||||||
VESSEL ACQUISITIONS AND DISPOSITIONS | |||||||||||
Aggregate purchase price | $ 41,000 | ||||||||||
Number of vessels purchased | item | 2 | ||||||||||
Predecessor | Yangfan Group Co., LTD | Agreement to Purchase Ultramax Drybulk Vessels | Baltic Trading | |||||||||||
VESSEL ACQUISITIONS AND DISPOSITIONS | |||||||||||
Capacity of vessels | item | 64,000 | ||||||||||
Total purchase price per vessel | $ 28,000 | ||||||||||
Number of vessels purchased | item | 2 | ||||||||||
Predecessor | Yangfan Group Co., LTD | Agreement to Purchase Ultramax Drybulk Vessels | Baltic Trading | Maximum | |||||||||||
VESSEL ACQUISITIONS AND DISPOSITIONS | |||||||||||
Number of vessels committed to be acquired under purchase agreement | item | 4 | ||||||||||
Aggregate purchase price | $ 112,000 | ||||||||||
Number of vessels purchased under option to be acquired per purchase agreement | item | 2 | ||||||||||
Line of Credit facility | $148 Million Credit Facility | |||||||||||
VESSEL ACQUISITIONS AND DISPOSITIONS | |||||||||||
Face amount of term loan facility | 148,000 | 148,000 | $ 148,000 | ||||||||
Secured Debt | $22 Million Term Loan Facility | |||||||||||
VESSEL ACQUISITIONS AND DISPOSITIONS | |||||||||||
Face amount of term loan facility | 22,000 | 22,000 | $ 22,000 | ||||||||
Secured Debt | $44 Million Term Loan Facility | |||||||||||
VESSEL ACQUISITIONS AND DISPOSITIONS | |||||||||||
Face amount of term loan facility | $ 44,000 | 44,000 | |||||||||
Secured Debt | Predecessor | $22 Million Term Loan Facility | |||||||||||
VESSEL ACQUISITIONS AND DISPOSITIONS | |||||||||||
Face amount of term loan facility | $ 22,000 | $ 22,000 | |||||||||
Secured Debt | Predecessor | $44 Million Term Loan Facility | |||||||||||
VESSEL ACQUISITIONS AND DISPOSITIONS | |||||||||||
Face amount of term loan facility | $ 44,000 |
INVESTMENTS (Details)
INVESTMENTS (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Jul. 09, 2014 | Dec. 31, 2015 | Dec. 31, 2013 | |
Schedule of Investments | ||||
Fair value of investment in capital stock | $ 26,486 | $ 12,327 | ||
Impairment of investment | $ 0 | $ 37,877 | ||
Predecessor | ||||
Schedule of Investments | ||||
Impairment of investment | $ 0 | $ 0 | ||
Jinhui Shipping and Transportation Limited | ||||
Schedule of Investments | ||||
Investment in the capital stock (in shares) | 16,335,100 | 15,706,825 | ||
Fair value of investment in capital stock | $ 26,414 | $ 12,273 | ||
Korea Line Corporation | ||||
Schedule of Investments | ||||
Investment in the capital stock (in shares) | 3,355 | 3,355 | ||
Fair value of investment in capital stock | $ 72 | $ 54 |
NET LOSS PER COMMON SHARE (Deta
NET LOSS PER COMMON SHARE (Details) - USD ($) $ in Thousands | Jul. 09, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Jul. 09, 2014 | Dec. 31, 2015 | Dec. 31, 2013 |
Nonvested shares outstanding | 798,615 | 798,615 | |||||||||||
Anti-dilutive shares (in shares) | 798,615 | ||||||||||||
Common shares outstanding, basic: | |||||||||||||
Weighted average common shares outstanding - Basic | 72,174,041,000 | 69,824,338,000 | 60,487,189,000 | 60,430,789,000 | 60,415,981,000 | 60,299,766,000 | 60,360,515 | 65,831,637 | |||||
Common shares outstanding, diluted: | |||||||||||||
Weighted average common shares outstanding - Basic | 72,174,041,000 | 69,824,338,000 | 60,487,189,000 | 60,430,789,000 | 60,415,981,000 | 60,299,766,000 | 60,360,515 | 65,831,637 | |||||
Weighted-average common shares outstanding, diluted (in shares) | 72,174,041,000 | 69,824,338,000 | 60,487,189,000 | 60,430,789,000 | 60,415,981,000 | 60,299,766,000 | 60,360,515 | 65,831,637 | |||||
Reconciliation of the net loss attributable to GS&T and the net loss attributable to GS&T for diluted net loss per share | |||||||||||||
Net loss attributable to Genco Shipping& Trading Limited | $ (49,498) | $ (66,625) | $ (40,332) | $ (38,442) | $ (164,003) | $ (18,290) | $ (182,294) | $ (194,897) | |||||
Net loss attributable to GS&T for the computation of diluted net loss per share | $ (182,294) | $ (194,897) | |||||||||||
MIP Warrants | |||||||||||||
Anti-dilutive shares (in shares) | 5,704,974 | ||||||||||||
New Genco Equity Warrants | |||||||||||||
Anti-dilutive shares (in shares) | 3,936,761 | ||||||||||||
Predecessor | |||||||||||||
Common shares outstanding, basic: | |||||||||||||
Weighted average common shares outstanding - Basic | 43,568,942,000 | 43,568,942,000 | 43,568,942,000 | 43,568,942 | 43,249,070 | ||||||||
Common shares outstanding, diluted: | |||||||||||||
Weighted average common shares outstanding - Basic | 43,568,942,000 | 43,568,942,000 | 43,568,942,000 | 43,568,942 | 43,249,070 | ||||||||
Weighted-average common shares outstanding, diluted (in shares) | 43,568,942,000 | 43,568,942,000 | 43,568,942,000 | 43,568,942 | 43,249,070 | ||||||||
Reconciliation of the net loss attributable to GS&T and the net loss attributable to GS&T for diluted net loss per share | |||||||||||||
Net loss attributable to Genco Shipping& Trading Limited | $ (851,520) | $ (60,524) | $ (39,105) | $ (951,149) | $ (147,741) | ||||||||
Net loss attributable to GS&T for the computation of diluted net loss per share | $ (951,149) | $ (147,741) |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Jul. 09, 2014 | Dec. 31, 2015 | Dec. 31, 2013 | |
Related Party Transaction | ||||
Service revenues | $ 1,584 | $ 3,175 | ||
Gener8 Maritime | ||||
Related Party Transaction | ||||
Amount invoiced for services performed and expenses paid | 12 | 0 | ||
Expenses incurred from transactions with related party | 53 | 111 | ||
Amount due to the related party | 41 | 8 | ||
Constantine Georgiopoulos | ||||
Related Party Transaction | ||||
Expenses incurred from transactions with related party | 11 | 18 | ||
Amount due to the related party | 9 | 11 | ||
Aegean Marine Petroleum Network Inc. | ||||
Related Party Transaction | ||||
Amount due to the related party | 267 | 219 | ||
Aegean Marine Petroleum Network Inc. | Lubricating Oil Purchases | ||||
Related Party Transaction | ||||
Expenses incurred from transactions with related party | 790 | 1,652 | ||
Aegean Marine Petroleum Network Inc. | Fuel Purchases | ||||
Related Party Transaction | ||||
Expenses incurred from transactions with related party | 73 | |||
MEP | ||||
Related Party Transaction | ||||
Amount invoiced for services performed and expenses paid | 1,618 | 3,233 | ||
Service revenues | 1,584 | 3,175 | ||
Amount due to the entity from a related party | $ 10 | $ 603 | ||
Predecessor | ||||
Related Party Transaction | ||||
Service revenues | $ 1,701 | $ 3,285 | ||
Predecessor | Gener8 Maritime | ||||
Related Party Transaction | ||||
Amount invoiced for services performed and expenses paid | 72 | 145 | ||
Expenses incurred from transactions with related party | 49 | 133 | ||
Predecessor | Constantine Georgiopoulos | ||||
Related Party Transaction | ||||
Expenses incurred from transactions with related party | 3 | 48 | ||
Predecessor | Aegean Marine Petroleum Network Inc. | Lubricating Oil Purchases | ||||
Related Party Transaction | ||||
Expenses incurred from transactions with related party | 1,087 | 1,521 | ||
Predecessor | MEP | ||||
Related Party Transaction | ||||
Amount invoiced for services performed and expenses paid | 1,743 | 3,430 | ||
Service revenues | $ 1,701 | $ 3,285 |
DEBT (Details)
DEBT (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015USD ($)item | Nov. 04, 2015USD ($) | Jul. 14, 2015USD ($) | Apr. 07, 2015USD ($) | Dec. 31, 2014USD ($) | |
Line of Credit Facility | |||||
Current portion | $ (588,434) | $ (34,324) | |||
Long-term debt | 395,811 | ||||
Number of credit facilities | item | 8 | ||||
Secured Debt | $100 Million Term Loan Facility | |||||
Line of Credit Facility | |||||
Long-term debt | $ 60,100 | 67,792 | |||
Current portion | (60,100) | ||||
Maximum borrowing capacity | 100,000 | 100,000 | |||
Secured Debt | $253 Million Term Loan Facility | |||||
Line of Credit Facility | |||||
Long-term debt | 145,268 | 165,568 | |||
Current portion | (145,268) | ||||
Maximum borrowing capacity | 253,000 | 253,000 | |||
Secured Debt | $44 Million Term Loan Facility | |||||
Line of Credit Facility | |||||
Long-term debt | 38,500 | 41,250 | |||
Current portion | (38,500) | ||||
Maximum borrowing capacity | 44,000 | 44,000 | |||
Secured Debt | $22 Million Term Loan Facility | |||||
Line of Credit Facility | |||||
Long-term debt | 18,625 | 20,125 | |||
Current portion | (18,625) | ||||
Maximum borrowing capacity | 22,000 | $ 22,000 | 22,000 | ||
Secured Debt | 2014 Term Loan Facilities | |||||
Line of Credit Facility | |||||
Long-term debt | 31,069 | 33,150 | |||
Revolving credit facility | 2015 Revolving Credit Facility | |||||
Line of Credit Facility | |||||
Long-term debt | 56,218 | 0 | |||
Current portion | (56,218) | ||||
Maximum borrowing capacity | $ 59,500 | ||||
Line of Credit facility | $98 Million Credit Facility | |||||
Line of Credit Facility | |||||
Long-term debt | 98,271 | 0 | |||
Current portion | (98,271) | ||||
Maximum borrowing capacity | 98,000 | $ 98,000 | |||
Line of Credit facility | 2010 Credit Facility | |||||
Line of Credit Facility | |||||
Long-term debt | 102,250 | ||||
Line of Credit facility | $148 Million Credit Facility | |||||
Line of Credit Facility | |||||
Long-term debt | 140,383 | ||||
Current portion | (140,383) | ||||
Maximum borrowing capacity | $ 148,000 | $ 148,000 | $ 148,000 |
DEBT (Details 2)
DEBT (Details 2) | Mar. 11, 2016USD ($) | Feb. 10, 2016USD ($) | Jan. 11, 2016USD ($) | Nov. 10, 2015USD ($) | Nov. 04, 2015USD ($)subsidiary | Aug. 03, 2015USD ($) | Apr. 30, 2015USD ($) | Dec. 31, 2014USD ($)item | Jul. 09, 2014USD ($)item | Apr. 01, 2014 | Sep. 04, 2013USD ($) | Aug. 30, 2013USD ($) | Aug. 31, 2012USD ($)facility | Aug. 01, 2012USD ($) | Feb. 28, 2012facilityshares | Dec. 21, 2011USD ($) | Aug. 20, 2010USD ($)trancheitem | Aug. 12, 2010USD ($)trancheitem | Jan. 26, 2009USD ($) | Jul. 20, 2007USD ($)facilityitem | Feb. 29, 2016 | Dec. 31, 2015USD ($)item | Oct. 31, 2015item | Aug. 31, 2015item | Jul. 31, 2015USD ($)item | Aug. 31, 2012USD ($)facility | Sep. 30, 2007 | Jun. 30, 2015 | Dec. 31, 2014USD ($)itemshares | Jul. 09, 2014USD ($)item | Dec. 31, 2015USD ($)itemshares | Dec. 31, 2013USD ($)item | Jul. 14, 2015USD ($) | Sep. 30, 2010item | Jul. 27, 2010 | Jul. 07, 2007 | Feb. 20, 2007facility |
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Number of vessels in the fleet | item | 67 | 70 | 67 | 70 | 66 | ||||||||||||||||||||||||||||||||
Issuance of common stock (in shares) | shares | 131,017 | 11,287,132 | |||||||||||||||||||||||||||||||||||
Debt classified as current liability | $ 34,324,000 | $ 588,434,000 | $ 34,324,000 | $ 588,434,000 | |||||||||||||||||||||||||||||||||
Amended and Restated Credit Facility | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Reduction in the minimum consolidated net worth ratio | $ 30,730,000 | ||||||||||||||||||||||||||||||||||||
Condensed net worth to be maintained | 270,150,000 | ||||||||||||||||||||||||||||||||||||
Secured Debt | $22 Million Term Loan Facility | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | 22,000,000 | $ 22,000,000 | 22,000,000 | $ 22,000,000 | $ 22,000,000 | ||||||||||||||||||||||||||||||||
Collateral security maintenance test (as a percent) | 110.00% | 110.00% | 110.00% | ||||||||||||||||||||||||||||||||||
Remaining borrowing capacity | $ 0 | $ 0 | |||||||||||||||||||||||||||||||||||
Long-term Debt | 20,125,000 | 18,625,000 | 20,125,000 | 18,625,000 | |||||||||||||||||||||||||||||||||
Debt classified as current liability | 18,625,000 | $ 18,625,000 | |||||||||||||||||||||||||||||||||||
Maintained Aggregate fair market value of the mortgaged vessels as a percentage of aggregate outstanding principal amount (as a percent) | 108.70% | ||||||||||||||||||||||||||||||||||||
Remedy period available to post additional collateral or reduce the amount of the revolving loans and/or letters of credit outstanding | 30 days | ||||||||||||||||||||||||||||||||||||
Prepayment of the outstanding indebtedness | $ 220,000 | ||||||||||||||||||||||||||||||||||||
Repayment of the outstanding debt | |||||||||||||||||||||||||||||||||||||
2,016 | 1,500,000 | $ 1,500,000 | |||||||||||||||||||||||||||||||||||
2,017 | 1,500,000 | 1,500,000 | |||||||||||||||||||||||||||||||||||
2,018 | 1,500,000 | 1,500,000 | |||||||||||||||||||||||||||||||||||
2,019 | 14,125,000 | 14,125,000 | |||||||||||||||||||||||||||||||||||
Long-term Line of Credit, Total | 18,625,000 | 18,625,000 | |||||||||||||||||||||||||||||||||||
Secured Debt | 2014 Term Loan Facilities | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Long-term Debt | 33,150,000 | 31,069,000 | 33,150,000 | 31,069,000 | |||||||||||||||||||||||||||||||||
Secured Debt | Baltic Trading $33 Million Term Loan Facility | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | 33,000,000 | 33,000,000 | |||||||||||||||||||||||||||||||||||
Long-term Debt | 0 | 32,725,000 | 0 | 32,725,000 | |||||||||||||||||||||||||||||||||
Repayment of the outstanding debt | |||||||||||||||||||||||||||||||||||||
2,016 | 2,200,000 | 2,200,000 | |||||||||||||||||||||||||||||||||||
2,017 | 2,200,000 | 2,200,000 | |||||||||||||||||||||||||||||||||||
2,018 | 2,200,000 | 2,200,000 | |||||||||||||||||||||||||||||||||||
2,019 | 26,125,000 | 26,125,000 | |||||||||||||||||||||||||||||||||||
Long-term Line of Credit, Total | 32,725,000 | 32,725,000 | |||||||||||||||||||||||||||||||||||
Secured Debt | Baltic Trading $33 Million Term Loan Facility | Baltic Scorpion | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Collateral security maintenance test (as a percent) | 140.00% | ||||||||||||||||||||||||||||||||||||
Drawdowns during the period | $ 16,500,000 | ||||||||||||||||||||||||||||||||||||
Secured Debt | $100 Million and $253 Million Term Loan Facilities | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Maximum total debt outstanding to value adjusted total assets ratio | 70 | ||||||||||||||||||||||||||||||||||||
Maximum percentage of liquidity covenant amended | 50.00% | ||||||||||||||||||||||||||||||||||||
Minimum cash required to be maintained by each collateralized vessel | $ 750,000 | ||||||||||||||||||||||||||||||||||||
Minimum period of available working capital lines | 6 months | ||||||||||||||||||||||||||||||||||||
Secured Debt | $100 Million and $253 Million Term Loan Facilities | LIBOR | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Applicable margin over reference rate (as a percent) | 3.50% | ||||||||||||||||||||||||||||||||||||
Secured Debt | $100 Million Term Loan Facility | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | |||||||||||||||||||||||||||||||||
Collateral security maintenance test (as a percent) | 130.00% | ||||||||||||||||||||||||||||||||||||
Long-term Debt | 67,792,000 | 60,100,000 | 67,792,000 | 60,100,000 | |||||||||||||||||||||||||||||||||
Debt classified as current liability | 60,100,000 | 60,100,000 | |||||||||||||||||||||||||||||||||||
Payment of upfront fees | $ 165,000 | ||||||||||||||||||||||||||||||||||||
Maintained Aggregate fair market value of the mortgaged vessels as a percentage of aggregate outstanding principal amount (as a percent) | 110.00% | ||||||||||||||||||||||||||||||||||||
Remedy period available to post additional collateral or reduce the amount of the revolving loans and/or letters of credit outstanding | 30 days | ||||||||||||||||||||||||||||||||||||
Number of unencumbered vessels adding as additional collateral to cover the shortfall of fair value | item | 2 | ||||||||||||||||||||||||||||||||||||
Repayment of the outstanding debt | |||||||||||||||||||||||||||||||||||||
2,016 | 7,692,000 | 7,692,000 | |||||||||||||||||||||||||||||||||||
2,017 | 7,692,000 | 7,692,000 | |||||||||||||||||||||||||||||||||||
2,018 | 7,692,000 | 7,692,000 | |||||||||||||||||||||||||||||||||||
2,019 | 37,024,000 | 37,024,000 | |||||||||||||||||||||||||||||||||||
Long-term Line of Credit, Total | 60,100,000 | 60,100,000 | |||||||||||||||||||||||||||||||||||
Secured Debt | $253 Million Term Loan Facility | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | 253,000,000 | 253,000,000 | 253,000,000 | 253,000,000 | |||||||||||||||||||||||||||||||||
Collateral security maintenance test (as a percent) | 135.00% | ||||||||||||||||||||||||||||||||||||
Drawdowns during the period | 253,000,000 | ||||||||||||||||||||||||||||||||||||
Long-term Debt | 165,568,000 | 145,268,000 | 165,568,000 | 145,268,000 | |||||||||||||||||||||||||||||||||
Debt classified as current liability | 145,268,000 | $ 145,268,000 | |||||||||||||||||||||||||||||||||||
Paydown of debt | $ 5,075,000 | ||||||||||||||||||||||||||||||||||||
Payment of upfront fees | $ 350,000 | ||||||||||||||||||||||||||||||||||||
Maintained Aggregate fair market value of the mortgaged vessels as a percentage of aggregate outstanding principal amount (as a percent) | 117.50% | 113.40% | |||||||||||||||||||||||||||||||||||
Remedy period available to post additional collateral or reduce the amount of the revolving loans and/or letters of credit outstanding | 30 days | ||||||||||||||||||||||||||||||||||||
Number of unencumbered vessels adding as additional collateral to cover the shortfall of fair value | item | 5 | ||||||||||||||||||||||||||||||||||||
Restricted cash | 9,750,000 | 9,750,000 | 9,750,000 | $ 9,750,000 | |||||||||||||||||||||||||||||||||
Prepayment of the outstanding indebtedness | $ 1,650,000 | ||||||||||||||||||||||||||||||||||||
Scheduled amortization payment to be reduced by prepayment | $ 5,075,000 | ||||||||||||||||||||||||||||||||||||
Repayment of the outstanding debt | |||||||||||||||||||||||||||||||||||||
2,016 | 20,300,000 | 20,300,000 | |||||||||||||||||||||||||||||||||||
2,017 | 20,300,000 | 20,300,000 | |||||||||||||||||||||||||||||||||||
2,018 | 20,300,000 | 20,300,000 | |||||||||||||||||||||||||||||||||||
2,019 | 84,368,000 | 84,368,000 | |||||||||||||||||||||||||||||||||||
Long-term Line of Credit, Total | 145,268,000 | 145,268,000 | |||||||||||||||||||||||||||||||||||
Line of Credit facility | $148 Million Credit Facility | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 148,000,000 | $ 148,000,000 | $ 148,000,000 | $ 148,000,000 | $ 148,000,000 | ||||||||||||||||||||||||||||||||
Collateral security maintenance test (as a percent) | 140.00% | 140.00% | |||||||||||||||||||||||||||||||||||
Minimum cash balance required per vessel owned | $ 750,000 | ||||||||||||||||||||||||||||||||||||
Payment of Credit Facility | $ 7,616,000 | ||||||||||||||||||||||||||||||||||||
Drawdowns during the period | 148,000,000 | ||||||||||||||||||||||||||||||||||||
Remaining borrowing capacity | $ 0 | 0 | |||||||||||||||||||||||||||||||||||
Long-term Debt | 140,383,000 | 140,383,000 | |||||||||||||||||||||||||||||||||||
Debt classified as current liability | $ 140,383,000 | $ 140,383,000 | |||||||||||||||||||||||||||||||||||
Commitment fee on unused daily average unutilized commitment (as a percent) | 1.20% | ||||||||||||||||||||||||||||||||||||
Number of vessels mortgaged | item | 9 | 9 | |||||||||||||||||||||||||||||||||||
Maintained Aggregate fair market value of the mortgaged vessels as a percentage of aggregate outstanding principal amount (as a percent) | 105.00% | ||||||||||||||||||||||||||||||||||||
Remedy period available to post additional collateral or reduce the amount of the revolving loans and/or letters of credit outstanding | 60 days | ||||||||||||||||||||||||||||||||||||
Number of unencumbered vessels adding as additional collateral to cover the shortfall of fair value | item | 2 | 2 | |||||||||||||||||||||||||||||||||||
Line of Credit facility | $148 Million Credit Facility | LIBOR | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Reference rate for interest payable | LIBOR | ||||||||||||||||||||||||||||||||||||
Applicable margin over reference rate (as a percent) | 3.00% | ||||||||||||||||||||||||||||||||||||
Line of Credit facility | 2007 Credit Facility | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Final payment amount | $ 381,182,000 | ||||||||||||||||||||||||||||||||||||
Consolidated leverage ratio | 5.5 | ||||||||||||||||||||||||||||||||||||
Line of Credit facility | 2007 Credit Facility | Minimum | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Ratio of EBITDA to interest expense | 2 | ||||||||||||||||||||||||||||||||||||
Line of Credit facility | $98 Million Credit Facility | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 98,000,000 | $ 98,000,000 | $ 98,000,000 | ||||||||||||||||||||||||||||||||||
Number of wholly owned subsidiaries | subsidiary | 13 | ||||||||||||||||||||||||||||||||||||
Drawdowns during the period | $ 98,271,000 | 98,271,000 | |||||||||||||||||||||||||||||||||||
Remaining borrowing capacity | 0 | 0 | |||||||||||||||||||||||||||||||||||
Long-term Debt | $ 0 | 98,271,000 | $ 0 | 98,271,000 | |||||||||||||||||||||||||||||||||
Debt classified as current liability | 98,271,000 | 98,271,000 | |||||||||||||||||||||||||||||||||||
Period without fixed amortization schedule | 2 years | ||||||||||||||||||||||||||||||||||||
Amount of periodic payment | $ 2,500,000 | ||||||||||||||||||||||||||||||||||||
Maximum collateral required for prepayment of loan (as a percent) | 182.00% | ||||||||||||||||||||||||||||||||||||
Number of collateral vessels | $ 13 | ||||||||||||||||||||||||||||||||||||
Restricted cash | $ 0 | 9,750,000 | $ 0 | 9,750,000 | |||||||||||||||||||||||||||||||||
Repayment of the outstanding debt | |||||||||||||||||||||||||||||||||||||
2,017 | 1,413,000 | 1,413,000 | |||||||||||||||||||||||||||||||||||
2,018 | 10,000,000 | 10,000,000 | |||||||||||||||||||||||||||||||||||
2,019 | 10,000,000 | 10,000,000 | |||||||||||||||||||||||||||||||||||
2,020 | 76,858,000 | 76,858,000 | |||||||||||||||||||||||||||||||||||
Long-term Line of Credit, Total | 98,271,000 | 98,271,000 | |||||||||||||||||||||||||||||||||||
Line of Credit facility | $98 Million Credit Facility | LIBOR | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Reference rate for interest payable | three-month LIBOR | ||||||||||||||||||||||||||||||||||||
Applicable margin over reference rate (as a percent) | 6.125% | ||||||||||||||||||||||||||||||||||||
Predecessor | 2007 Credit Facility | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Number of days after year end audited financial statements are to be furnished to lenders | 90 days | ||||||||||||||||||||||||||||||||||||
Predecessor | 2010 Notes | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Interest rate on convertible notes (as a percent) | 5.00% | ||||||||||||||||||||||||||||||||||||
Number of days after notice from trustee to cure default | 30 days | ||||||||||||||||||||||||||||||||||||
Predecessor | Secured Debt | $22 Million Term Loan Facility | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 22,000,000 | 22,000,000 | 22,000,000 | ||||||||||||||||||||||||||||||||||
Final payment amount | 13,375,000 | ||||||||||||||||||||||||||||||||||||
Proceeds from issuance of secured debt | $ 22,000,000 | ||||||||||||||||||||||||||||||||||||
Amount of periodic payment | $ 375,000 | ||||||||||||||||||||||||||||||||||||
Commitment fee on unused daily average unutilized commitment (as a percent) | 1.00% | ||||||||||||||||||||||||||||||||||||
Consolidated net worth threshold, base amount | $ 786,360,000 | ||||||||||||||||||||||||||||||||||||
Consolidated net worth threshold, percentage of the value of any subsequent primary equity offerings (as a percent) | 50.00% | ||||||||||||||||||||||||||||||||||||
Predecessor | Secured Debt | $22 Million Term Loan Facility | LIBOR | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Reference rate for interest payable | three-month LIBOR | ||||||||||||||||||||||||||||||||||||
Applicable margin over reference rate (as a percent) | 3.35% | ||||||||||||||||||||||||||||||||||||
Predecessor | Secured Debt | $22 Million Term Loan Facility | Baltic Hare | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Proceeds from issuance of secured debt | $ 10,730,000 | ||||||||||||||||||||||||||||||||||||
Predecessor | Secured Debt | $22 Million Term Loan Facility | Baltic Fox | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Proceeds from issuance of secured debt | $ 11,270,000 | ||||||||||||||||||||||||||||||||||||
Predecessor | Secured Debt | $100 Million and $253 Million Term Loan Facilities | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Minimum cash balance required per vessel owned | $ 750,000 | $ 750,000 | |||||||||||||||||||||||||||||||||||
Predecessor | Secured Debt | $100 Million and $253 Million Term Loan Facilities | LIBOR | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Applicable margin over reference rate for interest payable, before increase (as a percent) | 3.00% | 3.00% | |||||||||||||||||||||||||||||||||||
Predecessor | Secured Debt | $100 Million Term Loan Facility | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 100,000,000 | ||||||||||||||||||||||||||||||||||||
Drawdowns during the period | $ 20,000,000 | ||||||||||||||||||||||||||||||||||||
Reference rate for interest payable | Three-month LIBOR | ||||||||||||||||||||||||||||||||||||
Applicable margin over reference rate (as a percent) | 3.00% | ||||||||||||||||||||||||||||||||||||
Number of vessels acquired | item | 5 | ||||||||||||||||||||||||||||||||||||
Number of drawdowns | tranche | 5 | ||||||||||||||||||||||||||||||||||||
Number of drawdowns per vessel | tranche | 1 | ||||||||||||||||||||||||||||||||||||
Maturity term from the date of the first drawdown | 7 years | ||||||||||||||||||||||||||||||||||||
Commitment fee on unused daily average unutilized commitment (as a percent) | 1.35% | ||||||||||||||||||||||||||||||||||||
Profile for Amortization Period | 13 years | ||||||||||||||||||||||||||||||||||||
Paydown of debt | $ 1,923,000 | ||||||||||||||||||||||||||||||||||||
Number of vessels owned by each of the entity's wholly-owned ship-owning subsidiaries who act as guarantors | item | 1 | ||||||||||||||||||||||||||||||||||||
Predecessor | Secured Debt | $100 Million Term Loan Facility | Minimum | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Reference rate for interest payable | One-month LIBOR | ||||||||||||||||||||||||||||||||||||
Predecessor | Secured Debt | $100 Million Term Loan Facility | Maximum | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Reference rate for interest payable | Six-month LIBOR | ||||||||||||||||||||||||||||||||||||
Predecessor | Secured Debt | $253 Million Term Loan Facility | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 253,000,000 | 253,000,000 | 253,000,000 | ||||||||||||||||||||||||||||||||||
Number of vessels acquired | item | 13 | ||||||||||||||||||||||||||||||||||||
Number of drawdowns | tranche | 13 | ||||||||||||||||||||||||||||||||||||
Number of drawdowns per vessel | tranche | 1 | ||||||||||||||||||||||||||||||||||||
Commitment fee on unused daily average unutilized commitment (as a percent) | 1.25% | ||||||||||||||||||||||||||||||||||||
Paydown of debt | $ 5,075,000 | ||||||||||||||||||||||||||||||||||||
Number of vessels owned by each of the entity's wholly-owned ship-owning subsidiaries who act as guarantors | item | 1 | ||||||||||||||||||||||||||||||||||||
Number of vessels delivered pursuant to the agreement | item | 12 | ||||||||||||||||||||||||||||||||||||
Predecessor | Secured Debt | $253 Million Term Loan Facility | LIBOR | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Applicable margin over reference rate for interest payable, before increase (as a percent) | 3.00% | ||||||||||||||||||||||||||||||||||||
Predecessor | Line of Credit facility | Short-Term Line | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Payment of Credit Facility | $ 77,000,000 | ||||||||||||||||||||||||||||||||||||
Predecessor | Line of Credit facility | Standby letters of credit | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | 50,000,000 | ||||||||||||||||||||||||||||||||||||
Predecessor | Line of Credit facility | 2005 Credit Facility | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Payment of Credit Facility | $ 206,233,000 | ||||||||||||||||||||||||||||||||||||
Predecessor | Line of Credit facility | 2007 Credit Facility | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Number of credit facilities terminated | facility | 2 | 2 | |||||||||||||||||||||||||||||||||||
Minimum cash balances necessary to repay credit facility on a quarterly basis commencing September 30, 2012 | $ 100,000,000 | ||||||||||||||||||||||||||||||||||||
Percentage of repayments commencing September 30, 2012 to be allocated to the final payment at maturity (as a percent) | 25.00% | ||||||||||||||||||||||||||||||||||||
Percentage of repayments commencing September 30, 2012 to be allocated to the scheduled mandatory principal repayments (as a percent) | 75.00% | ||||||||||||||||||||||||||||||||||||
Facility fee (as a percent) | 1.00% | ||||||||||||||||||||||||||||||||||||
Prepayment fee (as a percent) | 1.25% | ||||||||||||||||||||||||||||||||||||
Long-term interest payable | 13,199,000 | ||||||||||||||||||||||||||||||||||||
Reference rate for interest payable | Three-month LIBOR | ||||||||||||||||||||||||||||||||||||
Applicable margin over reference rate for interest payable, before increase (as a percent) | 0.85% | ||||||||||||||||||||||||||||||||||||
Commitment fee on unused daily average unutilized commitment (as a percent) | 0.70% | 0.20% | 0.25% | ||||||||||||||||||||||||||||||||||
Maximum percentage of en bloc purchase price which may be financed by loans (as a percent) | 100.00% | ||||||||||||||||||||||||||||||||||||
Purchase price | $ 1,111,000,000 | $ 1,111,000,000 | |||||||||||||||||||||||||||||||||||
Number of vessels mortgaged | item | 35 | 35 | |||||||||||||||||||||||||||||||||||
Period collateral was pledged prior to effective date of Credit Facility | 30 days | ||||||||||||||||||||||||||||||||||||
Minimum cash balance required per vessel mortgaged, before increase | 500,000 | ||||||||||||||||||||||||||||||||||||
Minimum cash required to be maintained by each collateralized vessel | $ 750,000 | ||||||||||||||||||||||||||||||||||||
Remedy period available to post additional collateral or reduce the amount of the revolving loans and/or letters of credit outstanding | 30 days | ||||||||||||||||||||||||||||||||||||
Predecessor | Line of Credit facility | 2007 Credit Facility | Period from March 31, 2009 through March 31, 2012 | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Reduction in maximum borrowing capacity | $ 12,500,000 | ||||||||||||||||||||||||||||||||||||
Predecessor | Line of Credit facility | 2007 Credit Facility | Period from June 30, 2012 through July 20, 2017 | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Reduction in maximum borrowing capacity | $ 48,195,000 | ||||||||||||||||||||||||||||||||||||
Predecessor | Line of Credit facility | 2007 Credit Facility | Subsidiary guarantors | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Number of vessels in the fleet | item | 9 | ||||||||||||||||||||||||||||||||||||
Predecessor | Line of Credit facility | 2007 Credit Facility | Minimum | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Collateral security maintenance test (as a percent) | 130.00% | ||||||||||||||||||||||||||||||||||||
Appraised value of certain mortgaged vessels as percentage of the aggregate principal amount for ceasing of mandatory payment obligations (as a percent) | 100.00% | ||||||||||||||||||||||||||||||||||||
Capacity of vessels | item | 25,000 | ||||||||||||||||||||||||||||||||||||
Reference rate for interest payable | One-month LIBOR | ||||||||||||||||||||||||||||||||||||
Consolidated net worth threshold, base amount | $ 263,300,000 | ||||||||||||||||||||||||||||||||||||
Consolidated net worth threshold, percentage of the value of any subsequent primary equity offerings (as a percent) | 80.00% | ||||||||||||||||||||||||||||||||||||
Consolidated net worth based on equity offerings completed | $ 674,555,000 | ||||||||||||||||||||||||||||||||||||
Predecessor | Line of Credit facility | 2007 Credit Facility | Maximum | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Capacity of vessels | item | 180,000 | ||||||||||||||||||||||||||||||||||||
Age of drybulk carriers at the time of delivery | 10 years | ||||||||||||||||||||||||||||||||||||
Age of drybulk carriers at the time of maturity of the credit facility | 18 years | ||||||||||||||||||||||||||||||||||||
Reference rate for interest payable | Six-month LIBOR | ||||||||||||||||||||||||||||||||||||
Available working capital borrowings | $ 50,000 | ||||||||||||||||||||||||||||||||||||
Predecessor | Line of Credit facility | $100 Million Term Loan Facility | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 100,000,000 | $ 100,000,000 | |||||||||||||||||||||||||||||||||||
Payment of Credit Facility | $ 3,000,000 | $ 11,538,000 | |||||||||||||||||||||||||||||||||||
Predecessor | Line of Credit facility | $253 Million Term Loan Facility | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 253,000,000 | 253,000,000 | |||||||||||||||||||||||||||||||||||
Payment of Credit Facility | 7,000,000 | $ 30,450,000 | |||||||||||||||||||||||||||||||||||
Predecessor | Line of Credit facility | August 2012 Credit Facility Agreements | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 100,000,000 | ||||||||||||||||||||||||||||||||||||
Number of credit facilities with prepaid scheduled amortization payments | facility | 2 | ||||||||||||||||||||||||||||||||||||
Aggregate principal amount to be paid | $ 55,193,000 | $ 55,193,000 | |||||||||||||||||||||||||||||||||||
Number of credit facilities that will not increase the amount of principal indebtedness outstanding or change their maturity dates | facility | 3 | ||||||||||||||||||||||||||||||||||||
Number of credit facilities with vessels pledged being granted a second priority security interest | facility | 2 | ||||||||||||||||||||||||||||||||||||
Number of credit facilities in which the consenting lenders received an upfront fee | facility | 3 | ||||||||||||||||||||||||||||||||||||
Percentage of upfront fee received by consenting lenders (as a percent) | 0.25% | ||||||||||||||||||||||||||||||||||||
Payment of Credit Facility | $ 57,893,000 | ||||||||||||||||||||||||||||||||||||
Ratio of interest-bearing indebtedness to the sum of interest-bearing indebtedness and consolidated net worth (as a percent) | 62.50% | 62.50% | |||||||||||||||||||||||||||||||||||
Predecessor | Line of Credit facility | August 2012 Credit Facility Agreements | LIBOR | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Applicable margin over reference rate for interest payable, before increase (as a percent) | 2.00% | ||||||||||||||||||||||||||||||||||||
Applicable margin over reference rate (as a percent) | 3.00% | ||||||||||||||||||||||||||||||||||||
Predecessor | Line of Credit facility | August 2012 Credit Facility Agreements | Maximum | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Percentage of indebtedness allowed to be incurred for vessel acquisitions as percentage of the lesser of the vessel acquisition cost or fair market value (as a percent) | 60.00% | ||||||||||||||||||||||||||||||||||||
Predecessor | Line of Credit facility | December 2011 Credit Facility Agreements | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 100,000,000 | ||||||||||||||||||||||||||||||||||||
Percentage of upfront fee received by consenting lenders (as a percent) | 0.25% | ||||||||||||||||||||||||||||||||||||
Payment of Credit Facility | $ 52,500,000 | ||||||||||||||||||||||||||||||||||||
Facility fee (as a percent) | 2.00% | ||||||||||||||||||||||||||||||||||||
Reduction in facility fee if equity offering results in desired gross proceeds (as a percent) | 1.00% | ||||||||||||||||||||||||||||||||||||
Issuance of common stock (in shares) | shares | 7,500,000 | ||||||||||||||||||||||||||||||||||||
Ratio of interest-bearing indebtedness to the sum of interest-bearing indebtedness and consolidated net worth (as a percent) | 62.50% | ||||||||||||||||||||||||||||||||||||
Number of credit facilities not subject to facility fee | facility | 2 | ||||||||||||||||||||||||||||||||||||
Period from June 30, 2015 to December 30, 2015 | Secured Debt | 2014 Term Loan Facilities | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Collateral security maintenance test (as a percent) | 125.00% | ||||||||||||||||||||||||||||||||||||
Period from December 31, 2015 to March 30, 2016 | Secured Debt | 2014 Term Loan Facilities | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Collateral security maintenance test (as a percent) | 130.00% | ||||||||||||||||||||||||||||||||||||
Period from March 31, 2016 and thereafter | Secured Debt | 2014 Term Loan Facilities | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Collateral security maintenance test (as a percent) | 135.00% | ||||||||||||||||||||||||||||||||||||
Up to June 30, 2016 | Secured Debt | $22 Million Term Loan Facility | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Collateral security maintenance test (as a percent) | 110.00% | ||||||||||||||||||||||||||||||||||||
Up to December 31, 2015 | Line of Credit facility | $148 Million Credit Facility | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Collateral security maintenance test (as a percent) | 130.00% | ||||||||||||||||||||||||||||||||||||
After December 31, 2015 | Line of Credit facility | $148 Million Credit Facility | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Collateral security maintenance test (as a percent) | 140.00% | ||||||||||||||||||||||||||||||||||||
Forecast | Secured Debt | $253 Million Term Loan Facility | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||||||||||||||||||||
Prepayment of the outstanding indebtedness | $ 5,075,000 |
DEBT (Details 3)
DEBT (Details 3) $ in Thousands | Oct. 14, 2015USD ($) | Jul. 10, 2015USD ($) | Apr. 08, 2015USD ($) | Apr. 07, 2015USD ($)installment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Line of Credit Facility | ||||||
Debt classified as current liability | $ 588,434 | $ 34,324 | ||||
Revolving credit facility | 2015 Revolving Credit Facility | ||||||
Line of Credit Facility | ||||||
Maximum borrowing capacity | $ 59,500 | |||||
Quarterly reduction of total amount committed | $ 1,641 | |||||
Number of quarterly installments | installment | 20 | |||||
Commitment fee on unused daily average unutilized commitment (as a percent) | 1.50% | |||||
Period after agreement date for first periodic payment | 3 months | |||||
Drawdowns during the period | $ 21,218 | $ 10,000 | $ 25,000 | 56,218 | ||
Long-term debt | 56,218 | $ 0 | ||||
Debt classified as current liability | 56,218 | |||||
Repayment of the outstanding debt | ||||||
2,016 | 6,565 | |||||
2,017 | 6,565 | |||||
2,018 | 6,565 | |||||
2,019 | 6,565 | |||||
2,020 | 29,958 | |||||
Long-term Line of Credit, Total | $ 56,218 | |||||
Revolving credit facility | 2015 Revolving Credit Facility | LIBOR | ||||||
Line of Credit Facility | ||||||
Reference rate for interest payable | LIBOR | |||||
Revolving credit facility | 2015 Revolving Credit Facility | Minimum | LIBOR | ||||||
Line of Credit Facility | ||||||
Applicable margin over reference rate for interest payable | 3.40% | |||||
Revolving credit facility | 2015 Revolving Credit Facility | Maximum | LIBOR | ||||||
Line of Credit Facility | ||||||
Applicable margin over reference rate for interest payable | 4.25% |
DEBT (Details 4)
DEBT (Details 4) $ in Thousands | Dec. 23, 2013USD ($) | Dec. 03, 2013USD ($)item | Dec. 31, 2015USD ($) | Dec. 31, 2013 | Dec. 31, 2014USD ($) |
Line of Credit Facility | |||||
Debt classified as current liability | $ 588,434 | $ 34,324 | |||
Secured Debt | $44 Million Term Loan Facility | |||||
Line of Credit Facility | |||||
Maximum borrowing capacity | 44,000 | 44,000 | |||
Cash and cash equivalents and undrawn amount available for working capital required to be maintained | 750 | ||||
Remaining borrowing capacity | 0 | ||||
Long-term debt | 38,500 | $ 41,250 | |||
Debt classified as current liability | 38,500 | ||||
Repayment of the outstanding debt | |||||
2,016 | 2,750 | ||||
2,017 | 2,750 | ||||
2,018 | 2,750 | ||||
2,019 | 30,250 | ||||
Long-term Line of Credit, Total | 38,500 | ||||
Secured Debt | $44 Million Term Loan Facility | Baltic Tiger and Baltic Lion | |||||
Line of Credit Facility | |||||
Minimum cash required to be maintained by each collateralized vessel | $ 1,000 | ||||
Predecessor | Secured Debt | $44 Million Term Loan Facility | |||||
Line of Credit Facility | |||||
Maximum borrowing capacity | $ 44,000 | ||||
Term of facilities | 6 years | ||||
Commitment fee on unused daily average unutilized commitment (as a percent) | 0.75% | ||||
Number of quarterly installments | item | 23 | ||||
Amount of periodic payment | $ 688 | ||||
Period after last drawdown date for first periodic repayment | 3 months | ||||
Final payment amount | $ 28,188 | ||||
Amount of prepayments to have liens released | $ 18,000 | ||||
Maximum ratio of financial indebtedness to total assets (as a percent) | 70.00% | ||||
Consolidated net worth threshold, base amount | $ 786,360 | ||||
Consolidated net worth threshold, percentage of the value of any subsequent primary equity offerings (as a percent) | 50.00% | ||||
Collateral security maintenance test (as a percent) | 125.00% | ||||
Predecessor | Secured Debt | $44 Million Term Loan Facility | LIBOR | |||||
Line of Credit Facility | |||||
Reference rate for interest payable | three-month LIBOR | ||||
Applicable margin over reference rate (as a percent) | 3.35% | ||||
Predecessor | Secured Debt | $44 Million Term Loan Facility | Baltic Tiger | |||||
Repayment of the outstanding debt | |||||
Drawdowns during the period | $ 21,400 | ||||
Predecessor | Secured Debt | $44 Million Term Loan Facility | Baltic Lion | |||||
Repayment of the outstanding debt | |||||
Drawdowns during the period | $ 22,600 |
DEBT (Details 5)
DEBT (Details 5) - Line of Credit facility - 2010 Credit Facility $ in Thousands | Jan. 07, 2015USD ($) | Aug. 29, 2013USD ($)item | Dec. 31, 2015USD ($) | Dec. 31, 2013USD ($) | Nov. 30, 2010USD ($) | Apr. 16, 2010USD ($) |
Line of Credit Facility | ||||||
Payment of Credit Facility | $ 102,250 | $ 102,250 | ||||
Predecessor | ||||||
Line of Credit Facility | ||||||
Maximum borrowing capacity | $ 110,000 | $ 150,000 | $ 100,000 | |||
Amount of semi-annual reductions in maximum borrowing capacity through the maturity date | $ 5,000 | |||||
Number of consecutive semi-annual reductions in total commitment | item | 3 | |||||
Ratio of maximum facility amount to aggregate appraised value of vessels mortgaged (as a percent) | 55.00% | |||||
Applicable margin over reference rate for condition two (as a percent) | 3.35% | |||||
Drawdowns during the period | $ 1,000 | |||||
Predecessor | LIBOR | ||||||
Line of Credit Facility | ||||||
Reference rate for interest payable | LIBOR | |||||
Applicable margin over reference rate for condition one (as a percent) | 3.00% |
DEBT (Details 6)
DEBT (Details 6) $ in Thousands | Feb. 10, 2016USD ($) | Sep. 04, 2013 | Aug. 30, 2013USD ($)item | Dec. 31, 2015USD ($) | Jul. 14, 2015USD ($) | Dec. 31, 2014USD ($) |
Line of Credit Facility | ||||||
Debt classified as current liability | $ 588,434 | $ 34,324 | ||||
Secured Debt | $22 Million Term Loan Facility | ||||||
Line of Credit Facility | ||||||
Maximum borrowing capacity | 22,000 | $ 22,000 | 22,000 | |||
Remaining borrowing capacity | 0 | |||||
Long-term debt | 18,625 | $ 20,125 | ||||
Debt classified as current liability | 18,625 | |||||
Prepayment of outstanding debt | $ 220 | |||||
Repayment of the outstanding debt | ||||||
2,016 | 1,500 | |||||
2,017 | 1,500 | |||||
2,018 | 1,500 | |||||
2,019 | 14,125 | |||||
Long-term Line of Credit, Total | $ 18,625 | |||||
Remedy period available to post additional collateral or reduce the amount of the revolving loans and/or letters of credit outstanding | 30 days | |||||
Collateral security maintenance test (as a percent) | 110.00% | 110.00% | ||||
Maintained Aggregate fair market value of the mortgaged vessels as a percentage of aggregate outstanding principal amount (as a percent) | 108.70% | |||||
Prepayment of the outstanding indebtedness | $ 220 | |||||
Secured Debt | $22 Million Term Loan Facility | Baltic Fox and Baltic Hare | ||||||
Line of Credit Facility | ||||||
Minimum cash required to be maintained by each collateralized vessel | $ 500 | |||||
Cash and cash equivalents and undrawn amount available for working capital required to be maintained | 750 | |||||
Predecessor | Secured Debt | $22 Million Term Loan Facility | ||||||
Line of Credit Facility | ||||||
Maximum borrowing capacity | $ 22,000 | $ 22,000 | ||||
Term of facilities | 6 years | |||||
Commitment fee on unused daily average unutilized commitment (as a percent) | 1.00% | |||||
Number of quarterly installments | item | 23 | |||||
Amount of periodic payment | $ 375 | |||||
Final payment amount | $ 13,375 | |||||
Maximum ratio of financial indebtedness to total assets (as a percent) | 70.00% | |||||
Consolidated net worth threshold, base amount | $ 786,360 | |||||
Consolidated net worth threshold, percentage of the value of any subsequent primary equity offerings (as a percent) | 50.00% | |||||
Aggregate fair market value of the mortgaged vessels as a percentage of amount outstanding (as a percent) | 130.00% | |||||
Aggregate fair market value of the mortgaged vessels as a percentage of amount outstanding after August 30, 2016 (as a percent) | 135.00% | |||||
Repayment of the outstanding debt | ||||||
Period after latest vessel delivery date for first periodic repayment | 3 months | |||||
Predecessor | Secured Debt | $22 Million Term Loan Facility | LIBOR | ||||||
Line of Credit Facility | ||||||
Reference rate for interest payable | three-month LIBOR | |||||
Applicable margin over reference rate (as a percent) | 3.35% |
DEBT (Details 7)
DEBT (Details 7) $ in Thousands | Jan. 03, 2016 | Jan. 02, 2016USD ($) | Dec. 30, 2014USD ($) | Oct. 24, 2014USD ($) | Oct. 08, 2014USD ($)installment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Line of Credit Facility | |||||||
Debt classified as current liability | $ 588,434 | $ 34,324 | |||||
Secured Debt | 2014 Term Loan Facilities | |||||||
Line of Credit Facility | |||||||
Term of facilities | 10 years | ||||||
Maximum facility amount of delivered cost per vessel (as a percent) | 60.00% | ||||||
Maximum facility amount of delivered cost per vessel | $ 16,800 | ||||||
Maximum facility amount of fair market value per vessel at delivery (as a percent) | 60.00% | ||||||
Percentage of outstanding principal plus interest insured | 95.00% | ||||||
Number of semi-annual installments in which the credit facility is to be repaid | installment | 20 | ||||||
Amount due per installment (as a percent) | 4.16% | ||||||
Balloon payment of facility amount due at maturity (as a percent) | 16.67% | ||||||
Minimum cash required to be maintained by each collateralized vessel | 750 | ||||||
Remaining borrowing capacity | 0 | ||||||
Long-term debt | 31,069 | $ 33,150 | |||||
Debt classified as current liability | 31,069 | ||||||
Repayment of the outstanding debt | |||||||
2,016 | 2,763 | ||||||
2,017 | 2,763 | ||||||
2,018 | 2,763 | ||||||
2,019 | 2,763 | ||||||
2,020 | 2,763 | ||||||
Thereafter | 17,254 | ||||||
Long-term Line of Credit, Total | $ 31,069 | ||||||
Amount of periodic payment | $ 681 | ||||||
Collateral security maintenance test (as a percent) | 130.00% | ||||||
Maintained Aggregate fair market value of the mortgaged vessels as a percentage of aggregate outstanding principal amount (as a percent) | 132.50% | 129.60% | |||||
Secured Debt | 2014 Term Loan Facilities | LIBOR | |||||||
Line of Credit Facility | |||||||
Reference rate for interest payable | three or six-month LIBOR | ||||||
Applicable margin over reference rate (as a percent) | 2.50% | ||||||
Secured Debt | 2014 Term Loan Facilities | Baltic Hornet | |||||||
Line of Credit Facility | |||||||
Maximum borrowing capacity | $ 16,800 | ||||||
Period after latest vessel delivery date for first periodic repayment | 6 months | ||||||
Drawdowns during the period | $ 16,800 | ||||||
Secured Debt | 2014 Term Loan Facilities | Baltic Wasp | |||||||
Line of Credit Facility | |||||||
Maximum borrowing capacity | $ 16,800 | ||||||
Period after latest vessel delivery date for first periodic repayment | 6 months | ||||||
Drawdowns during the period | $ 16,350 |
DEBT (Details 8)
DEBT (Details 8) $ in Thousands | Oct. 07, 2015USD ($) | Aug. 03, 2015USD ($) | Feb. 27, 2015USD ($) | Jan. 07, 2015USD ($) | Dec. 31, 2014USD ($)item | Jul. 09, 2014USD ($)item | Jan. 26, 2009USD ($) | Jul. 20, 2007USD ($) | Dec. 31, 2015USD ($)item | Aug. 31, 2015item | Aug. 31, 2012 | Sep. 30, 2007 | Dec. 31, 2014USD ($)item | Jul. 09, 2014USD ($)item | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)item | Dec. 31, 2013 | Jul. 14, 2015USD ($) | Aug. 01, 2012USD ($) |
Line of Credit Facility | |||||||||||||||||||
Debt classified as current liability | $ 34,324 | $ 588,434 | $ 34,324 | $ 588,434 | $ 34,324 | ||||||||||||||
Interest rates on debt | |||||||||||||||||||
Effective Interest Rate (as a percent) | 3.60% | 3.65% | |||||||||||||||||
Range of Interest Rates, minimum (excluding impact of swaps and unused commitment fees) (as a percent) | 2.73% | 2.69% | |||||||||||||||||
Range of Interest Rates, maximum (excluding impact of swaps and unused commitment fees) (as a percent) | 3.76% | 6.73% | |||||||||||||||||
Secured Debt | Baltic Trading $33 Million Term Loan Facility | |||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||
Maximum borrowing capacity | $ 33,000 | $ 33,000 | 33,000 | ||||||||||||||||
Number of single term loans | item | 2 | ||||||||||||||||||
Number of vessels purchased by using term loan finance | item | 2 | ||||||||||||||||||
Period after latest vessel delivery date for first periodic repayment | 3 months | ||||||||||||||||||
Amount aggregate outstanding term loan due per installment (as a percent) | 1.667% | ||||||||||||||||||
Long-term debt | $ 0 | 32,725 | 0 | $ 32,725 | 0 | ||||||||||||||
Repayment of the outstanding debt | |||||||||||||||||||
2,016 | 2,200 | 2,200 | |||||||||||||||||
2,017 | 2,200 | 2,200 | |||||||||||||||||
2,018 | 2,200 | 2,200 | |||||||||||||||||
2,019 | 26,125 | 26,125 | |||||||||||||||||
Long-term Line of Credit, Total | 32,725 | 32,725 | |||||||||||||||||
Secured Debt | Baltic Trading $33 Million Term Loan Facility | Baltic Scorpion | |||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||
Maximum facility amount of delivered cost per vessel expected to be refinanced | 16,500 | ||||||||||||||||||
Drawdowns during the period | $ 16,500 | ||||||||||||||||||
Collateral security maintenance test (as a percent) | 140.00% | ||||||||||||||||||
Secured Debt | Baltic Trading $33 Million Term Loan Facility | Baltic Mantis | |||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||
Maximum facility amount of delivered cost per vessel expected to be refinanced | $ 16,500 | ||||||||||||||||||
Drawdowns during the period | $ 16,500 | ||||||||||||||||||
Line of Credit facility | $148 Million Credit Facility | |||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||
Maximum borrowing capacity | $ 148,000 | 148,000 | $ 148,000 | 148,000 | $ 148,000 | $ 148,000 | |||||||||||||
Commitment fee on unused daily average unutilized commitment (as a percent) | 1.20% | ||||||||||||||||||
Amount of consecutive quarterly reductions in maximum borrowing capacity | $ 2,447 | ||||||||||||||||||
Number of vessels mortgaged | item | 9 | 9 | 9 | ||||||||||||||||
Minimum period for future time charter contracts to be secured under lien | 36 months | ||||||||||||||||||
Remaining borrowing capacity | 0 | 0 | |||||||||||||||||
Long-term debt | 140,383 | 140,383 | |||||||||||||||||
Debt classified as current liability | $ 140,383 | 140,383 | |||||||||||||||||
Drawdowns during the period | $ 148,000 | ||||||||||||||||||
Collateral security maintenance test (as a percent) | 140.00% | 140.00% | |||||||||||||||||
Number of unencumbered vessels adding as additional collateral to cover the shortfall of fair value | item | 2 | 2 | |||||||||||||||||
Repayment of the outstanding debt | |||||||||||||||||||
Payment of Credit Facility | $ 7,616 | ||||||||||||||||||
Remedy period available to post additional collateral or reduce the amount of the revolving loans and/or letters of credit outstanding | 60 days | ||||||||||||||||||
Maintained Aggregate fair market value of the mortgaged vessels as a percentage of aggregate outstanding principal amount (as a percent) | 105.00% | ||||||||||||||||||
Line of Credit facility | $148 Million Credit Facility | LIBOR | |||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||
Reference rate for interest payable | LIBOR | ||||||||||||||||||
Applicable margin over reference rate (as a percent) | 3.00% | ||||||||||||||||||
Line of Credit facility | 2007 Credit Facility | |||||||||||||||||||
Repayment of the outstanding debt | |||||||||||||||||||
Final payment amount | $ 381,182 | ||||||||||||||||||
Line of Credit facility | 2007 Credit Facility | Minimum | |||||||||||||||||||
Repayment of the outstanding debt | |||||||||||||||||||
Ratio of EBITDA to interest expense | 2 | ||||||||||||||||||
Revolving credit facility | Baltic Trading $115 Million Revolving Credit Facility | |||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||
Maximum borrowing capacity | $ 115,000 | $ 115,000 | $ 115,000 | ||||||||||||||||
Long-term debt | 0 | $ 107,658 | 0 | $ 107,658 | 0 | ||||||||||||||
Drawdowns during the period | $ 10,500 | $ 104,500 | |||||||||||||||||
Repayment of the outstanding debt | |||||||||||||||||||
2,016 | 9,787 | 9,787 | |||||||||||||||||
2,017 | 9,787 | 9,787 | |||||||||||||||||
2,018 | 9,787 | 9,787 | |||||||||||||||||
2,019 | 78,297 | 78,297 | |||||||||||||||||
Long-term Line of Credit, Total | 107,658 | 107,658 | |||||||||||||||||
Predecessor | |||||||||||||||||||
Interest rates on debt | |||||||||||||||||||
Effective Interest Rate (as a percent) | 4.19% | 4.70% | |||||||||||||||||
Range of Interest Rates, minimum (excluding impact of swaps and unused commitment fees) (as a percent) | 3.15% | 3.16% | |||||||||||||||||
Range of Interest Rates, maximum (excluding impact of swaps and unused commitment fees) (as a percent) | 5.15% | 4.38% | |||||||||||||||||
Predecessor | Line of Credit facility | 2007 Credit Facility | |||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||
Reference rate for interest payable | Three-month LIBOR | ||||||||||||||||||
Commitment fee on unused daily average unutilized commitment (as a percent) | 0.70% | 0.20% | 0.25% | ||||||||||||||||
Number of vessels mortgaged | item | 35 | 35 | |||||||||||||||||
Repayment of the outstanding debt | |||||||||||||||||||
Minimum cash required to be maintained by each collateralized vessel | $ 750 | ||||||||||||||||||
Applicable margin over reference rate for interest payable, before increase (as a percent) | 0.85% | ||||||||||||||||||
Minimum cash balance required per vessel mortgaged, before increase | 500 | ||||||||||||||||||
Prepayment fee (as a percent) | 1.25% | ||||||||||||||||||
Long-term interest payable | $ 13,199 | ||||||||||||||||||
Facility fee (as a percent) | 1.00% | ||||||||||||||||||
Maximum percentage of en bloc purchase price which may be financed by loans (as a percent) | 100.00% | ||||||||||||||||||
Purchase price | $ 1,111,000 | $ 1,111,000 | |||||||||||||||||
Remedy period available to post additional collateral or reduce the amount of the revolving loans and/or letters of credit outstanding | 30 days | ||||||||||||||||||
Predecessor | Line of Credit facility | 2007 Credit Facility | Minimum | |||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||
Reference rate for interest payable | One-month LIBOR | ||||||||||||||||||
Collateral security maintenance test (as a percent) | 130.00% | ||||||||||||||||||
Repayment of the outstanding debt | |||||||||||||||||||
Consolidated net worth threshold, base amount | $ 263,300 | ||||||||||||||||||
Consolidated net worth threshold, percentage of the value of any subsequent primary equity offerings (as a percent) | 80.00% | ||||||||||||||||||
Consolidated net worth based on equity offerings completed | $ 674,555 | ||||||||||||||||||
Predecessor | Line of Credit facility | 2007 Credit Facility | Maximum | |||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||
Reference rate for interest payable | Six-month LIBOR | ||||||||||||||||||
Repayment of the outstanding debt | |||||||||||||||||||
Age of drybulk carriers at the time of delivery | 10 years | ||||||||||||||||||
Age of drybulk carriers at the time of maturity of the credit facility | 18 years | ||||||||||||||||||
Available working capital borrowings | $ 50 | ||||||||||||||||||
Predecessor | Letter of credit | |||||||||||||||||||
Repayment of the outstanding debt | |||||||||||||||||||
Restricted cash | 300 | 315 | 300 | $ 315 | $ 300 | ||||||||||||||
Letter of credit | |||||||||||||||||||
Fee on letter of credit (as a percent) | 1.375% | 1.00% | |||||||||||||||||
Amount of letters outstanding | $ 300 | $ 300 | $ 300 | $ 300 | $ 300 | ||||||||||||||
Predecessor | Letter of credit | Minimum | |||||||||||||||||||
Letter of credit | |||||||||||||||||||
Notice period for cancellation of line of credit | 30 days | ||||||||||||||||||
Up to December 31, 2015 | Line of Credit facility | $148 Million Credit Facility | |||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||
Collateral security maintenance test (as a percent) | 130.00% | ||||||||||||||||||
After December 31, 2015 | Line of Credit facility | $148 Million Credit Facility | |||||||||||||||||||
Line of Credit Facility | |||||||||||||||||||
Collateral security maintenance test (as a percent) | 140.00% |
CONVERTIBLE SENIOR NOTES (Detai
CONVERTIBLE SENIOR NOTES (Details) - USD ($) $ in Thousands | Jul. 27, 2010 | Dec. 31, 2014 | Jul. 09, 2014 | Dec. 31, 2015 | Dec. 31, 2013 |
Debt | |||||
Non-cash deferred financing amortization costs included in interest expense | $ 845 | $ 2,379 | |||
Predecessor | |||||
Debt | |||||
Non-cash interest expense recognized | $ 1,592 | $ 4,963 | |||
Non-cash deferred financing amortization costs included in interest expense | 4,461 | $ 9,116 | |||
Predecessor | 2010 Notes | |||||
Debt | |||||
Proceeds from convertible debt | $ 125,000 | ||||
Interest rate on convertible notes (as a percent) | 5.00% | ||||
Interest expense, including amortization of discount not recorded | $ 2,522 | ||||
Effective interest rate on liability component (as a percent) | 10.00% | 10.00% | |||
Cash interest expense recognized | $ 1,886 | $ 6,250 | |||
Non-cash interest expense recognized | 1,592 | 4,963 | |||
Non-cash deferred financing amortization costs included in interest expense | $ 216 | $ 720 |
INTEREST RATE SWAP AGREEMENTS82
INTEREST RATE SWAP AGREEMENTS (Details) $ in Thousands | Apr. 30, 2014USD ($) | Dec. 31, 2015derivative | Dec. 31, 2014derivative | Dec. 31, 2013derivative |
Interest rate swaps designated as cash flow hedges | ||||
Number of interest rate swap agreements outstanding | 0 | 0 | ||
Predecessor | ||||
Interest rate swaps designated as cash flow hedges | ||||
Number of interest rate swap agreements outstanding | 4 | |||
Chapter 11 | DNB Bank ASA | Predecessor | ||||
Interest rate swaps designated as cash flow hedges | ||||
Secured claim issued with the Bankruptcy Court | $ | $ 5,622 |
INTEREST RATE SWAP AGREEMENTS83
INTEREST RATE SWAP AGREEMENTS (Details 2) - Predecessor $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jul. 09, 2014USD ($)item | Dec. 31, 2013USD ($) | Jun. 30, 2014USD ($)item | |
Interest rate contracts | Derivatives in cash flow hedging relationships | |||
Impact of derivative instruments and their location within Condensed Consolidated Statement of Operations | |||
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | $ (179) | $ (882) | |
Interest rate contracts | Interest Expense. | Derivatives in cash flow hedging relationships | |||
Impact of derivative instruments and their location within Condensed Consolidated Statement of Operations | |||
Amount of Gain (Loss) Reclassified from AOCI into income (Effective Portion) | (2,580) | (9,963) | |
Interest rate contracts | Interest Expense. | Derivatives not designated as Hedging | |||
Impact of derivative instruments and their location within Condensed Consolidated Statement of Operations | |||
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | $ (225) | ||
Interest rate contracts | Other Expense | Derivatives in cash flow hedging relationships | |||
Impact of derivative instruments and their location within Condensed Consolidated Statement of Operations | |||
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | $ (4) | ||
2007 Credit Facility | Line of Credit facility | |||
Impact of derivative instruments and their location within Condensed Consolidated Statement of Operations | |||
Number of vessels mortgaged | item | 35 | ||
2007 Credit Facility | Line of Credit facility | Interest rate contracts | |||
Impact of derivative instruments and their location within Condensed Consolidated Statement of Operations | |||
Number of vessels mortgaged | item | 35 | ||
Aggregate amount of collateral | $ 100,000 |
ACCUMULATED OTHER COMPREHENSI84
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Jul. 09, 2014 | Dec. 31, 2015 | Dec. 31, 2013 | |
Changes in AOCI by Component | ||||
Balance at the beginning of the period | $ (25,317) | |||
Other comprehensive income (loss) | $ (25,317) | 25,296 | ||
Balance at the end of the period | (25,317) | (21) | ||
Net Unrealized Gain (Loss) on Investments | ||||
Changes in AOCI by Component | ||||
Balance at the beginning of the period | (25,317) | |||
OCI before reclassifications | (25,317) | (13,268) | ||
Amounts reclassified from AOCI | 38,564 | |||
Other comprehensive income (loss) | (25,317) | 25,296 | ||
Balance at the end of the period | (25,317) | $ (21) | ||
Predecessor | ||||
Changes in AOCI by Component | ||||
Balance at the beginning of the period | 30,357 | $ 53,722 | $ (11,841) | |
OCI before reclassifications | (25,945) | 75,526 | ||
Amounts reclassified from AOCI | 2,580 | (9,963) | ||
Other comprehensive income (loss) | (23,365) | 65,563 | ||
Balance at the end of the period | 30,357 | 53,722 | ||
Predecessor | Net Unrealized Gain (Loss) on Cash Flow Hedges | ||||
Changes in AOCI by Component | ||||
Balance at the beginning of the period | (4,575) | (6,976) | (16,057) | |
OCI before reclassifications | (179) | 19,044 | ||
Amounts reclassified from AOCI | 2,580 | (9,963) | ||
Other comprehensive income (loss) | 2,401 | 9,081 | ||
Balance at the end of the period | (4,575) | (6,976) | ||
Predecessor | Net Unrealized Gain (Loss) on Investments | ||||
Changes in AOCI by Component | ||||
Balance at the beginning of the period | $ 34,932 | 60,698 | 4,216 | |
OCI before reclassifications | (25,766) | 56,482 | ||
Other comprehensive income (loss) | (25,766) | 56,482 | ||
Balance at the end of the period | $ 34,932 | $ 60,698 |
ACCUMULATED OTHER COMPREHENSI85
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details 2) - USD ($) $ in Thousands | Jul. 09, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Jul. 09, 2014 | Dec. 31, 2015 | Dec. 31, 2013 |
Reclassifications Out of AOCI | |||||||||||||
Other (expense) income | $ (7,538) | $ (58,595) | |||||||||||
Impairment of investment | 0 | (37,877) | |||||||||||
Interest expense | (7,620) | (20,032) | |||||||||||
Net loss attributable to Genco Shipping& Trading Limited | $ (49,498) | $ (66,625) | $ (40,332) | $ (38,442) | $ (164,003) | $ (18,290) | $ (182,294) | (194,897) | |||||
Net Unrealized Gain (Loss) on Investments | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||||
Reclassifications Out of AOCI | |||||||||||||
Other (expense) income | (687) | ||||||||||||
Impairment of investment | (37,877) | ||||||||||||
Net loss attributable to Genco Shipping& Trading Limited | $ (38,564) | ||||||||||||
Predecessor | |||||||||||||
Reclassifications Out of AOCI | |||||||||||||
Other (expense) income | $ (41,122) | $ (88,217) | |||||||||||
Impairment of investment | 0 | 0 | |||||||||||
Interest expense | (41,061) | (88,216) | |||||||||||
Net loss attributable to Genco Shipping& Trading Limited | $ (851,520) | $ (60,524) | $ (39,105) | (951,149) | (147,741) | ||||||||
Predecessor | Net Unrealized Gain (Loss) on Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||||
Reclassifications Out of AOCI | |||||||||||||
Net loss attributable to Genco Shipping& Trading Limited | (2,580) | (9,963) | |||||||||||
Predecessor | Net Unrealized Gain (Loss) on Cash Flow Hedges | Interest rate contracts | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||||
Reclassifications Out of AOCI | |||||||||||||
Interest expense | $ (2,580) | $ (9,963) |
FAIR VALUE OF FINANCIAL INSTR86
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Nov. 04, 2015 | Jul. 14, 2015 | Dec. 31, 2014 |
Secured Debt | $100 Million Term Loan Facility | ||||
Fair value of financial instruments | ||||
Floating rate debt | $ 60,100 | $ 67,792 | ||
Face amount of term loan facility | 100,000 | 100,000 | ||
Secured Debt | $253 Million Term Loan Facility | ||||
Fair value of financial instruments | ||||
Restricted cash | 9,750 | 9,750 | ||
Floating rate debt | 145,268 | 165,568 | ||
Face amount of term loan facility | 253,000 | 253,000 | ||
Secured Debt | $44 Million Term Loan Facility | ||||
Fair value of financial instruments | ||||
Floating rate debt | 38,500 | 41,250 | ||
Face amount of term loan facility | 44,000 | 44,000 | ||
Secured Debt | $22 Million Term Loan Facility | ||||
Fair value of financial instruments | ||||
Floating rate debt | 18,625 | 20,125 | ||
Face amount of term loan facility | 22,000 | $ 22,000 | 22,000 | |
Line of Credit facility | $98 Million Credit Facility | ||||
Fair value of financial instruments | ||||
Restricted cash | 9,750 | 0 | ||
Floating rate debt | 98,271 | 0 | ||
Face amount of term loan facility | 98,000 | $ 98,000 | ||
Line of Credit facility | $148 Million Credit Facility | ||||
Fair value of financial instruments | ||||
Floating rate debt | 140,383 | |||
Face amount of term loan facility | 148,000 | $ 148,000 | 148,000 | |
Carrying Value | ||||
Fair value of financial instruments | ||||
Cash and cash equivalents | 121,074 | 83,414 | ||
Restricted cash | 19,815 | 29,695 | ||
Floating rate debt | 588,434 | 430,135 | ||
Estimate of Fair Value Measurement | ||||
Fair value of financial instruments | ||||
Cash and cash equivalents | 121,074 | 83,414 | ||
Restricted cash | 19,815 | 29,695 | ||
Floating rate debt | $ 588,434 | $ 430,135 |
FAIR VALUE OF FINANCIAL INSTR87
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair value of financial instruments | ||
Investments | $ 12,327 | $ 26,486 |
Quoted Market Prices in Active Markets (Level 1) | ||
Fair value of financial instruments | ||
Investments | $ 12,327 | $ 26,486 |
PREPAID EXPENSES AND OTHER CU88
PREPAID EXPENSES AND OTHER CURRENT AND NONCURRENT ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
PREPAID EXPENSES AND OTHER CURRENT AND NONCURRENT ASSETS | ||
Lubricant inventory, fuel oil and diesel oil inventory and other stores | $ 10,478 | $ 11,018 |
Prepaid items | 3,917 | 4,638 |
Insurance receivable | 2,738 | 1,951 |
Other | 4,236 | 4,816 |
Total prepaid expenses and other current assets | 21,369 | 22,423 |
Security deposit related to operating lease included in other noncurrent assets | $ 514 | $ 514 |
DEFERRED FINANCING COSTS (Detai
DEFERRED FINANCING COSTS (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2014 | Jul. 09, 2014 | Dec. 31, 2015 | Dec. 31, 2013 | Nov. 04, 2015 | Jul. 14, 2015 | Apr. 07, 2015 | Dec. 03, 2013 | Aug. 30, 2013 | Aug. 01, 2012 | Dec. 21, 2011 | Aug. 20, 2010 | Aug. 12, 2010 | |
Deferred financing costs | |||||||||||||
Total deferred financing costs | $ 11,000 | $ 15,812 | |||||||||||
Less: accumulated amortization | 729 | 3,107 | |||||||||||
Total | 10,271 | 12,705 | |||||||||||
Amortization of deferred financing costs | 845 | 2,379 | |||||||||||
Secured Debt | $100 Million Term Loan Facility | |||||||||||||
Deferred financing costs | |||||||||||||
Maximum borrowing capacity | 100,000 | 100,000 | |||||||||||
Total deferred financing costs | 1,492 | 1,656 | |||||||||||
Secured Debt | $253 Million Term Loan Facility | |||||||||||||
Deferred financing costs | |||||||||||||
Maximum borrowing capacity | 253,000 | 253,000 | |||||||||||
Total deferred financing costs | 3,135 | 3,485 | |||||||||||
Secured Debt | $44 Million Term Loan Facility | |||||||||||||
Deferred financing costs | |||||||||||||
Maximum borrowing capacity | 44,000 | 44,000 | |||||||||||
Total deferred financing costs | 758 | 861 | |||||||||||
Secured Debt | $22 Million Term Loan Facility | |||||||||||||
Deferred financing costs | |||||||||||||
Maximum borrowing capacity | 22,000 | 22,000 | $ 22,000 | ||||||||||
Total deferred financing costs | 529 | 593 | |||||||||||
Secured Debt | 2014 Term Loan Facilities | |||||||||||||
Deferred financing costs | |||||||||||||
Total deferred financing costs | 1,853 | 1,946 | |||||||||||
Revolving credit facility | 2015 Revolving Credit Facility | |||||||||||||
Deferred financing costs | |||||||||||||
Maximum borrowing capacity | $ 59,500 | ||||||||||||
Total deferred financing costs | 1,254 | ||||||||||||
Line of Credit facility | $98 Million Credit Facility | |||||||||||||
Deferred financing costs | |||||||||||||
Maximum borrowing capacity | 98,000 | $ 98,000 | |||||||||||
Total deferred financing costs | 2,447 | ||||||||||||
Line of Credit facility | $148 Million Credit Facility | |||||||||||||
Deferred financing costs | |||||||||||||
Maximum borrowing capacity | 148,000 | 148,000 | $ 148,000 | ||||||||||
Total deferred financing costs | $ 3,233 | 3,570 | |||||||||||
Predecessor | |||||||||||||
Deferred financing costs | |||||||||||||
Amortization of deferred financing costs | $ 4,461 | $ 9,116 | |||||||||||
Predecessor | Secured Debt | $100 Million Term Loan Facility | |||||||||||||
Deferred financing costs | |||||||||||||
Maximum borrowing capacity | $ 100,000 | ||||||||||||
Predecessor | Secured Debt | $253 Million Term Loan Facility | |||||||||||||
Deferred financing costs | |||||||||||||
Maximum borrowing capacity | 253,000 | $ 253,000 | |||||||||||
Predecessor | Secured Debt | $44 Million Term Loan Facility | |||||||||||||
Deferred financing costs | |||||||||||||
Maximum borrowing capacity | $ 44,000 | ||||||||||||
Predecessor | Secured Debt | $22 Million Term Loan Facility | |||||||||||||
Deferred financing costs | |||||||||||||
Maximum borrowing capacity | 22,000 | $ 22,000 | |||||||||||
Predecessor | Line of Credit facility | $100 Million Term Loan Facility | |||||||||||||
Deferred financing costs | |||||||||||||
Maximum borrowing capacity | $ 100,000 | ||||||||||||
Predecessor | Line of Credit facility | $253 Million Term Loan Facility | |||||||||||||
Deferred financing costs | |||||||||||||
Maximum borrowing capacity | $ 253,000 | $ 253,000 |
FIXED ASSETS (Details)
FIXED ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
FIXED ASSETS | ||
Total cost | $ 1,690 | $ 820 |
Less: accumulated depreciation and amortization | 404 | 119 |
Total | 1,286 | 701 |
Vessel Equipment | ||
FIXED ASSETS | ||
Total cost | 1,086 | 229 |
Furniture and Fixtures | ||
FIXED ASSETS | ||
Total cost | 462 | 462 |
Computer equipment | ||
FIXED ASSETS | ||
Total cost | $ 142 | $ 129 |
ACCOUNTS PAYABLE AND ACCRUED 91
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | ||
Accounts payable | $ 8,271 | $ 9,921 |
Accrued general and administrative expenses | 5,745 | 5,894 |
Accrued vessel operating expenses | 13,451 | 12,402 |
Total | $ 27,467 | $ 28,217 |
LIABILITIES SUBJECT TO COMPRO92
LIABILITIES SUBJECT TO COMPROMISE (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 09, 2014 | Aug. 01, 2012 | Dec. 21, 2011 | Aug. 20, 2010 | Aug. 12, 2010 |
Predecessor | Chapter 11 | |||||||
Liabilities subject to compromise | |||||||
Interest payable | $ 13,199 | ||||||
Terminated interest rate swap liability | 5,622 | ||||||
Lease obligation | 815 | ||||||
Pre-petition accounts payable | 41 | ||||||
Total | 1,443,446 | ||||||
Predecessor | Chapter 11 | 2010 Notes | |||||||
Liabilities subject to compromise | |||||||
Discharge of Predecessor equity | 117,473 | ||||||
Bond coupon interest payable | 1,105 | ||||||
Line of Credit facility | Predecessor | 2007 Credit Facility | Chapter 11 | |||||||
Liabilities subject to compromise | |||||||
Discharge of Predecessor equity | 1,055,912 | ||||||
Line of Credit facility | Predecessor | $100 Million Term Loan Facility | |||||||
Liabilities subject to compromise | |||||||
Maximum borrowing capacity | $ 100,000 | ||||||
Line of Credit facility | Predecessor | $253 Million Term Loan Facility | |||||||
Liabilities subject to compromise | |||||||
Maximum borrowing capacity | $ 253,000 | $ 253,000 | |||||
Secured Debt | $100 Million Term Loan Facility | |||||||
Liabilities subject to compromise | |||||||
Maximum borrowing capacity | 100,000 | $ 100,000 | |||||
Secured Debt | $253 Million Term Loan Facility | |||||||
Liabilities subject to compromise | |||||||
Maximum borrowing capacity | 253,000 | $ 253,000 | |||||
Secured Debt | Predecessor | $100 Million Term Loan Facility | |||||||
Liabilities subject to compromise | |||||||
Maximum borrowing capacity | $ 100,000 | ||||||
Secured Debt | Predecessor | $100 Million Term Loan Facility | Chapter 11 | |||||||
Liabilities subject to compromise | |||||||
Discharge of Predecessor equity | 73,561 | ||||||
Secured Debt | Predecessor | $253 Million Term Loan Facility | |||||||
Liabilities subject to compromise | |||||||
Maximum borrowing capacity | $ 253,000 | $ 253,000 | |||||
Secured Debt | Predecessor | $253 Million Term Loan Facility | Chapter 11 | |||||||
Liabilities subject to compromise | |||||||
Discharge of Predecessor equity | $ 175,718 |
REVENUE FROM TIME CHARTERS (Det
REVENUE FROM TIME CHARTERS (Details) - USD ($) $ in Thousands | Jul. 09, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Jul. 09, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 23, 2016 |
Voyage revenues | $ 34,236 | $ 49,167 | $ 33,772 | $ 33,609 | $ 54,874 | $ 43,943 | $ 98,817 | $ 150,784 | |||||||
Profit sharing revenue | $ 0 | $ 0 | |||||||||||||
Future minimum time charter revenue | |||||||||||||||
Expected minimum time charter revenue | $ 6,151 | ||||||||||||||
Offhire period | 20 days | ||||||||||||||
Predecessor | |||||||||||||||
Voyage revenues | $ 4,034 | $ 51,545 | $ 63,180 | $ 118,759 | $ 224,179 | ||||||||||
Profit sharing revenue | $ 0 |
REORGANIZATION ITEMS, NET (Deta
REORGANIZATION ITEMS, NET (Details) - USD ($) $ in Thousands | Jul. 09, 2014 | Dec. 31, 2014 | Jul. 09, 2014 | Dec. 31, 2015 |
Reorganization items, net | ||||
Total reorganization fees | $ 1,591 | $ 1,085 | ||
Total reorganization items, net | 1,591 | 1,085 | ||
Chapter 11 | ||||
Reorganization items, net | ||||
Professional fees incurred | 968 | 708 | ||
Trustee fees incurred | 623 | 377 | ||
Total reorganization fees | 1,591 | 1,085 | ||
Total reorganization items, net | $ 1,591 | $ 1,085 | ||
Predecessor | ||||
Reorganization items, net | ||||
Total reorganization fees | $ 35,232 | |||
Gain on settlement of liabilities subject to compromise in exchange for equity issuance, net | (33,832) | |||
Total fresh-start adjustment | 880,408 | |||
Total reorganization items, net | 915,640 | |||
Predecessor | As Reported | ||||
Reorganization items, net | ||||
Total reorganization items, net | (882,167) | |||
Predecessor | Adjustment | ||||
Reorganization items, net | ||||
Total reorganization items, net | $ 1,797,807 | $ 1,797,807 | ||
Predecessor | Chapter 11 | ||||
Reorganization items, net | ||||
Professional fees incurred | 34,981 | |||
Trustee fees incurred | 251 | |||
Total reorganization fees | 35,232 | |||
Gain on settlement of liabilities subject to compromise in exchange for equity issuance, net | (33,832) | |||
Fresh-start reporting adjustments | 914,240 | |||
Total fresh-start adjustment | 880,408 | |||
Total reorganization items, net | 915,640 | |||
Predecessor | Chapter 11 | As Reported | ||||
Reorganization items, net | ||||
Professional fees incurred | 34,981 | |||
Trustee fees incurred | 251 | |||
Total reorganization fees | 35,232 | |||
Gain on settlement of liabilities subject to compromise | (1,187,689) | |||
Net gain on debt and equity discharge and issuance | (775,086) | |||
Fresh-start reporting adjustments | 1,045,376 | |||
Total fresh-start adjustment | (917,399) | |||
Total reorganization items, net | (882,167) | |||
Predecessor | Chapter 11 | Adjustment | ||||
Reorganization items, net | ||||
Gain on settlement of liabilities subject to compromise | 1,187,689 | |||
Net gain on debt and equity discharge and issuance | 775,086 | |||
Gain on settlement of liabilities subject to compromise in exchange for equity issuance, net | (33,832) | |||
Fresh-start reporting adjustments | (131,136) | |||
Total fresh-start adjustment | 1,797,807 | |||
Total reorganization items, net | $ 1,797,807 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | Jul. 09, 2014 | Jul. 09, 2014 | Apr. 04, 2011 | Sep. 30, 2005 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2013 |
Commitments and contingencies | |||||||
Long-term lease obligations | $ 390 | $ 1,149 | |||||
Lease agreement entered into April 2011 | |||||||
Commitments and contingencies | |||||||
Long-term lease obligations | 390 | 1,149 | |||||
Rent expense | $ 865 | 1,808 | |||||
Future minimum rental payments | |||||||
2,016 | 1,076 | ||||||
2,017 | 1,076 | ||||||
2,018 | 916 | ||||||
2,019 | 2,230 | ||||||
2,020 | 2,230 | ||||||
Remaining term of the lease | 11,130 | ||||||
Lease agreement entered into April 2011 | Period from October 1, 2018 to April 30, 2023 | |||||||
Commitments and contingencies | |||||||
Monthly rental payment | 186 | ||||||
Lease agreement entered into April 2011 | Period from May 1, 2023 to September 30, 2025 | |||||||
Commitments and contingencies | |||||||
Monthly rental payment | 204 | ||||||
Lease agreement entered into April 2011 | Period during July 9, 2014 to September 30, 2025 | |||||||
Commitments and contingencies | |||||||
Monthly straight-line rental expense | 150 | ||||||
Sub Sublease Agreement | Period until May 31, 2015 | |||||||
Commitments and contingencies | |||||||
Monthly rental payment | 82 | ||||||
Sub Sublease Agreement | Period after May 31, 2015 until April 30, 2022 | |||||||
Commitments and contingencies | |||||||
Monthly rental payment | $ 90 | ||||||
Predecessor | Lease agreement entered into September 2005 | |||||||
Commitments and contingencies | |||||||
Lease term | 15 years | ||||||
Rent expense, net | $ (41) | $ 1,264 | |||||
Predecessor | Lease agreement entered into April 2011 | |||||||
Commitments and contingencies | |||||||
Lease term | 7 years | ||||||
Obligation of sublessor towards the cost of alterations of office space | $ 472 | ||||||
Rent expense | 813 | $ 1,558 | |||||
Predecessor | Lease agreement entered into April 2011 | Period during June 1, 2011 to September 30, 2025 | |||||||
Commitments and contingencies | |||||||
Monthly straight-line rental expense | $ 130 | $ 130 |
COMMITMENTS AND CONTINGENCIES96
COMMITMENTS AND CONTINGENCIES (Details 2) - USD ($) $ in Thousands | Jul. 09, 2014 | Oct. 04, 2013 | Dec. 31, 2014 | Jul. 09, 2014 | Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2013 | Feb. 05, 2010 |
Bankruptcy settlement | ||||||||
Other operating income recognized | $ 530 | $ 0 | ||||||
Predecessor | ||||||||
Bankruptcy settlement | ||||||||
Other operating income recognized | $ 0 | $ 121 | ||||||
Samsun | ||||||||
Bankruptcy settlement | ||||||||
Other operating income recognized | 530 | |||||||
Korea Line Corporation | ||||||||
Bankruptcy settlement | ||||||||
Other operating income recognized | 0 | |||||||
Korea Line Corporation | Predecessor | ||||||||
Bankruptcy settlement | ||||||||
Other operating income recognized | $ 0 | $ 21 | ||||||
Settlement Payment | $ 21 | |||||||
Number of shares received related to the rehabilitation plan (in shares) | 3,355 | 3,355 | ||||||
Korea Line Corporation | Predecessor | Other Income | ||||||||
Bankruptcy settlement | ||||||||
Fair value of shares received | $ 100 | $ 100 | ||||||
Bankruptcy settlement due | Samsun | ||||||||
Bankruptcy settlement | ||||||||
2012 Bankruptcy claims received | 296 | |||||||
2013 Bankruptcy claims received | $ 234 | |||||||
Percentage of bankruptcy claim due remitted | 50.00% | |||||||
Other operating income recognized | $ 530 | |||||||
Bankruptcy Claims Amount Of Payments Due Remitted | $ 0 | |||||||
Bankruptcy settlement due | Samsun | Predecessor | ||||||||
Bankruptcy settlement | ||||||||
Amount of bankruptcy claim to be settled following the rehabilitation process | $ 17,212 | |||||||
Cash to be received to settle bankruptcy claim as percentage of total settlement | 34.00% | |||||||
Cash to be received to settle bankruptcy claim | $ 5,852 | |||||||
Bankruptcy claims settled by conversion into shares of entity (as a percent) | 66.00% | |||||||
Amount of bankruptcy claim settled through conversion into shares of entity | $ 11,360 | |||||||
Bankruptcy Claims Amount Of Payments Due Remitted | $ 0 | $ 0 | $ 0 | |||||
Bankruptcy settlement due | Samsun | Predecessor | Minimum | ||||||||
Bankruptcy settlement | ||||||||
Percentage of total cash settlement to be received annually | 8.00% | |||||||
Bankruptcy settlement due | Samsun | Predecessor | Maximum | ||||||||
Bankruptcy settlement | ||||||||
Percentage of total cash settlement to be received annually | 17.00% |
SAVINGS PLAN (Details)
SAVINGS PLAN (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Jul. 09, 2014 | Dec. 31, 2015 | Dec. 31, 2013 | |
Employer's dollar contribution for each employee percent to the 401(k) plan | $ 1.17 | |||
Employer's matching contribution (as a percent) | 6.00% | |||
Employer's matching contribution | $ 181,000 | $ 305,000 | ||
Predecessor | ||||
Employer's matching contribution | $ 131,000 | $ 301,000 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) | Feb. 17, 2016itemshares | Jul. 29, 2015shares | Jul. 17, 2015shares | Jul. 13, 2015shares | Dec. 18, 2014shares | Aug. 07, 2014USD ($)$ / sharesshares | Aug. 06, 2014shares | Jul. 10, 2014$ / sharesshares | Apr. 09, 2014shares | Dec. 19, 2013shares | May. 16, 2013shares | Dec. 13, 2012shares | Nov. 07, 2012shares | May. 17, 2012shares | Mar. 03, 2010itemshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Jul. 09, 2014USD ($)$ / sharesshares | Dec. 31, 2015USD ($)item$ / sharesshares | Dec. 31, 2014$ / sharesshares | Dec. 31, 2013USD ($)$ / sharesshares | Mar. 13, 2014shares | Jul. 12, 2005shares |
Number of Shares | |||||||||||||||||||||||
Balance at the end of the period (in shares) | 798,615 | 798,615 | |||||||||||||||||||||
Number of resignations from the Board of Directors | item | 2 | ||||||||||||||||||||||
Peter C. Georgiopoulos, Chairman of Board | Baltic Trading | |||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||
Granted (in shares) | 700,000 | ||||||||||||||||||||||
Restricted Stock Units | Directors | |||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||
Granted (in shares) | 58,215 | 16,188 | 74,403 | ||||||||||||||||||||
Vested/Exercisable (in shares) | (23,286) | (16,188) | 0 | (16,188) | |||||||||||||||||||
Balance at the end of the period (in shares) | 58,215 | 58,215 | |||||||||||||||||||||
Number of common shares outstanding in respect of RSUs | 0 | ||||||||||||||||||||||
Weighted Average Exercise price | |||||||||||||||||||||||
Weighted-average remaining contractual life | 4 months 13 days | ||||||||||||||||||||||
Weighted Average Grant Date Price | |||||||||||||||||||||||
Granted (in dollars per share) | $ / shares | $ 7.11 | ||||||||||||||||||||||
Vested/Exercisable (in dollars per share) | $ / shares | 7 | ||||||||||||||||||||||
Balance at the end of the period (in dollars per share) | $ / shares | $ 7.15 | $ 7.15 | |||||||||||||||||||||
Additional disclosures | |||||||||||||||||||||||
Total fair value of shares vested | $ | $ 116,000 | ||||||||||||||||||||||
Unrecognized compensation cost related to nonvested stock awards | |||||||||||||||||||||||
Unrecognized compensation cost | $ | $ 193,000 | $ 193,000 | |||||||||||||||||||||
Weighted-average period for recognition of unrecognized compensation cost | 4 months 13 days | ||||||||||||||||||||||
Predecessor | |||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||
Forfeited (in shares) | (21,500) | ||||||||||||||||||||||
Predecessor | Peter C. Georgiopoulos, Chairman of Board | Baltic Trading | |||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||
Granted (in shares) | 539,000 | ||||||||||||||||||||||
Predecessor | Directors | Baltic Trading | |||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||
Granted (in shares) | 36,345 | 59,680 | |||||||||||||||||||||
2005 and 2012 GS&T Plans | Predecessor | |||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||
Balance at the beginning of the period (in shares) | 880,465 | 880,465 | 1,108,762 | ||||||||||||||||||||
Granted (in shares) | 200,634 | ||||||||||||||||||||||
Vested/Exercisable (in shares) | (880,465) | (407,431) | |||||||||||||||||||||
Forfeited (in shares) | (21,500) | ||||||||||||||||||||||
Balance at the end of the period (in shares) | 880,465 | ||||||||||||||||||||||
Weighted Average Grant Date Price | |||||||||||||||||||||||
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 7.77 | $ 7.77 | $ 9.47 | ||||||||||||||||||||
Granted (in dollars per share) | $ / shares | 1.57 | ||||||||||||||||||||||
Vested/Exercisable (in dollars per share) | $ / shares | $ 7.77 | 9.46 | |||||||||||||||||||||
Forfeited (in dollars per share) | $ / shares | 5.53 | ||||||||||||||||||||||
Balance at the end of the period (in dollars per share) | $ / shares | $ 7.77 | ||||||||||||||||||||||
Additional disclosures | |||||||||||||||||||||||
Total fair value of shares vested | $ | $ 691,000 | $ 943,000 | |||||||||||||||||||||
Unrecognized compensation cost related to nonvested stock awards | |||||||||||||||||||||||
Number of anniversaries in which award vests | 4 years | ||||||||||||||||||||||
2005 and 2012 GS&T Plans | Predecessor | Peter C. Georgiopoulos, Chairman of Board | |||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||
Granted (in shares) | 100,000 | ||||||||||||||||||||||
Unrecognized compensation cost related to nonvested stock awards | |||||||||||||||||||||||
Number of anniversaries in which award vests, which are not granted as part of grants to all directors | 10 years | ||||||||||||||||||||||
2005 and 2012 GS&T Plans | Predecessor | Directors | |||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||
Granted (in shares) | 52,500 | 2,500 | 15,000 | ||||||||||||||||||||
2005 GS&T Plan | Predecessor | |||||||||||||||||||||||
Unrecognized compensation cost related to nonvested stock awards | |||||||||||||||||||||||
Aggregate number of shares of common stock available for awards | 2,000,000 | ||||||||||||||||||||||
2012 GS&T Plan | Predecessor | |||||||||||||||||||||||
Unrecognized compensation cost related to nonvested stock awards | |||||||||||||||||||||||
Aggregate number of shares of common stock available for awards | 3,000,000 | ||||||||||||||||||||||
2012 GS&T Plan | Predecessor | Directors | |||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||
Granted (in shares) | 200,634 | ||||||||||||||||||||||
2014 MIP Plan | |||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||
Balance at the beginning of the period (in shares) | 1,110,600 | ||||||||||||||||||||||
Granted (in shares) | 1,110,600 | ||||||||||||||||||||||
Vested/Exercisable (in shares) | (370,200) | ||||||||||||||||||||||
Balance at the end of the period (in shares) | 740,400 | 1,110,600 | 740,400 | 1,110,600 | |||||||||||||||||||
Weighted Average Grant Date Price | |||||||||||||||||||||||
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 20 | ||||||||||||||||||||||
Granted (in dollars per share) | $ / shares | $ 20 | ||||||||||||||||||||||
Vested/Exercisable (in dollars per share) | $ / shares | 20 | ||||||||||||||||||||||
Balance at the end of the period (in dollars per share) | $ / shares | $ 20 | $ 20 | $ 20 | $ 20 | |||||||||||||||||||
Additional disclosures | |||||||||||||||||||||||
Total fair value of shares vested | $ | $ 0 | $ 2,662,000 | |||||||||||||||||||||
Unrecognized compensation cost related to nonvested stock awards | |||||||||||||||||||||||
Unrecognized compensation cost | $ | $ 6,163,000 | $ 6,163,000 | |||||||||||||||||||||
Weighted-average period for recognition of unrecognized compensation cost | 1 year 7 months 6 days | ||||||||||||||||||||||
Aggregate number of shares of common stock available for awards | 250,000,000 | 9,668,061 | |||||||||||||||||||||
Percentage of common stock outstanding ( In percent) | 1.80% | ||||||||||||||||||||||
2014 MIP Plan | MIP Warrants | |||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||
Balance at the beginning of the period (in shares) | 8,557,461 | 8,557,461 | 8,557,461 | ||||||||||||||||||||
Vested/Exercisable (in shares) | (2,852,487) | ||||||||||||||||||||||
Balance at the end of the period (in shares) | 5,704,974 | 8,557,461 | 8,557,461 | 5,704,974 | 8,557,461 | ||||||||||||||||||
Weighted Average Exercise price | |||||||||||||||||||||||
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 30.31 | $ 30.31 | $ 30.31 | ||||||||||||||||||||
Exercisable (in dollars per share) | $ / shares | 30.31 | ||||||||||||||||||||||
Outstanding at the end of the period (in dollars per share) | $ / shares | $ 30.31 | 30.31 | $ 30.31 | $ 30.31 | $ 30.31 | ||||||||||||||||||
Weighted-average remaining contractual life | 4 years 7 months 6 days | ||||||||||||||||||||||
Weighted Average Grant Date Price | |||||||||||||||||||||||
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 6.36 | 6.36 | $ 6.36 | ||||||||||||||||||||
Vested/Exercisable (in dollars per share) | $ / shares | 6.36 | ||||||||||||||||||||||
Balance at the end of the period (in dollars per share) | $ / shares | $ 6.36 | $ 6.36 | $ 6.36 | $ 6.36 | $ 6.36 | ||||||||||||||||||
Weighted average remaining contractual life, exercisable | 4 years 7 months 6 days | ||||||||||||||||||||||
Additional disclosures | |||||||||||||||||||||||
Total fair value of outstanding awards upon emergence from bankruptcy | $ | $ 54,436,000 | ||||||||||||||||||||||
Unrecognized compensation cost related to nonvested stock awards | |||||||||||||||||||||||
Unrecognized compensation cost | $ | $ 15,105,000 | $ 15,105,000 | |||||||||||||||||||||
Number of anniversaries in which award vests | 3 years | ||||||||||||||||||||||
Volatility rate ( as a percent) | 43.91% | ||||||||||||||||||||||
Volatility rate term | 6 years | ||||||||||||||||||||||
Risk-free interest rate ( as a percent) | 1.85% | ||||||||||||||||||||||
Dividend rate ( as a percent) | 0.00% | ||||||||||||||||||||||
Percentage of warrant vest for anniversaries of the grant date | 33.33% | ||||||||||||||||||||||
Amortization | |||||||||||||||||||||||
2016 | $ | 11,496,000 | 11,496,000 | |||||||||||||||||||||
2017 | $ | $ 3,609,000 | $ 3,609,000 | |||||||||||||||||||||
2014 MIP Plan | MIP Warrants | $25.91 Warrants | |||||||||||||||||||||||
Unrecognized compensation cost related to nonvested stock awards | |||||||||||||||||||||||
Aggregate number of shares of common stock available for awards | 2,380,664 | ||||||||||||||||||||||
Strike price (in dollars per share) | $ / shares | $ 25.91 | ||||||||||||||||||||||
Fair value of warrant (in dollars per share) | $ / shares | $ 7.22 | ||||||||||||||||||||||
2014 MIP Plan | MIP Warrants | $28.73 Warrants | |||||||||||||||||||||||
Unrecognized compensation cost related to nonvested stock awards | |||||||||||||||||||||||
Aggregate number of shares of common stock available for awards | 2,467,009 | ||||||||||||||||||||||
Strike price (in dollars per share) | $ / shares | $ 28.73 | ||||||||||||||||||||||
Fair value of warrant (in dollars per share) | $ / shares | $ 6.63 | ||||||||||||||||||||||
2014 MIP Plan | MIP Warrants | $34.19 Warrants | |||||||||||||||||||||||
Unrecognized compensation cost related to nonvested stock awards | |||||||||||||||||||||||
Aggregate number of shares of common stock available for awards | 3,709,788 | ||||||||||||||||||||||
Strike price (in dollars per share) | $ / shares | $ 34.19 | ||||||||||||||||||||||
Fair value of warrant (in dollars per share) | $ / shares | $ 5.63 | ||||||||||||||||||||||
Baltic Trading Plan | Baltic Trading | |||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||
Balance at the beginning of the period (in shares) | 1,941,844 | ||||||||||||||||||||||
Granted (in shares) | 1,086,345 | ||||||||||||||||||||||
Vested/Exercisable (in shares) | (1,941,844) | (1,941,844) | (525,930) | ||||||||||||||||||||
Balance at the end of the period (in shares) | 1,941,844 | 1,941,844 | |||||||||||||||||||||
Weighted Average Grant Date Price | |||||||||||||||||||||||
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 3.80 | ||||||||||||||||||||||
Granted (in dollars per share) | $ / shares | $ 2.61 | ||||||||||||||||||||||
Vested/Exercisable (in dollars per share) | $ / shares | $ 3.80 | 7.21 | |||||||||||||||||||||
Balance at the end of the period (in dollars per share) | $ / shares | $ 3.80 | $ 3.80 | |||||||||||||||||||||
Additional disclosures | |||||||||||||||||||||||
Total fair value of shares vested | $ | $ 1,168,000 | $ 2,913,000 | |||||||||||||||||||||
Amortization | |||||||||||||||||||||||
Number of anniversaries in which award vests in connection with IPO | item | 4 | ||||||||||||||||||||||
Number of anniversaries in which award vests not in connection with IPO | item | 4 | ||||||||||||||||||||||
Baltic Trading Plan | Predecessor | Baltic Trading | |||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||
Balance at the beginning of the period (in shares) | 1,381,429 | 1,381,429 | 664,249 | ||||||||||||||||||||
Granted (in shares) | 998,680 | ||||||||||||||||||||||
Vested/Exercisable (in shares) | (281,500) | ||||||||||||||||||||||
Balance at the end of the period (in shares) | 1,381,429 | ||||||||||||||||||||||
Weighted Average Grant Date Price | |||||||||||||||||||||||
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 6.03 | $ 6.03 | $ 7.70 | ||||||||||||||||||||
Granted (in dollars per share) | $ / shares | 5.60 | ||||||||||||||||||||||
Vested/Exercisable (in dollars per share) | $ / shares | 8.48 | ||||||||||||||||||||||
Balance at the end of the period (in dollars per share) | $ / shares | $ 6.03 | ||||||||||||||||||||||
Additional disclosures | |||||||||||||||||||||||
Total fair value of shares vested | $ | $ 1,143,000 | $ 1,194,000 | |||||||||||||||||||||
Unrecognized compensation cost related to nonvested stock awards | |||||||||||||||||||||||
Aggregate number of shares of common stock available for awards | 2,000,000 | 6,000,000 |
STOCK-BASED COMPENSATION (Det99
STOCK-BASED COMPENSATION (Details 2) - General and Administrative Expense - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Jul. 09, 2014 | Dec. 31, 2015 | Dec. 31, 2013 | |
STOCK-BASED COMPENSATION | ||||
Recognized nonvested stock amortization expense | $ 237 | |||
2005 and 2012 GS&T Plans | Predecessor | ||||
STOCK-BASED COMPENSATION | ||||
Recognized nonvested stock amortization expense | $ 2,403 | $ 2,924 | ||
Baltic Trading Plan | Baltic Trading | ||||
STOCK-BASED COMPENSATION | ||||
Recognized nonvested stock amortization expense | $ 1,551 | 5,273 | ||
Baltic Trading Plan | Predecessor | Baltic Trading | ||||
STOCK-BASED COMPENSATION | ||||
Recognized nonvested stock amortization expense | $ 1,949 | $ 1,558 | ||
2014 MIP Plan | ||||
STOCK-BASED COMPENSATION | ||||
Recognized nonvested stock amortization expense | 5,464 | 10,585 | ||
2014 MIP Plan | MIP Warrants | ||||
STOCK-BASED COMPENSATION | ||||
Recognized nonvested stock amortization expense | $ 13,390 | $ 25,941 |
LEGAL PROCEEDINGS (Details)
LEGAL PROCEEDINGS (Details) $ in Thousands | Mar. 28, 2014item | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Apr. 03, 2014USD ($) | Aug. 20, 2010USD ($) |
Predecessor | |||||
Line of Credit Facility | |||||
Number of vessels in dispute | item | 1 | ||||
Cash collateralized bank guarantee | $ 900 | ||||
Secured Debt | $253 Million Term Loan Facility | |||||
Line of Credit Facility | |||||
Face amount of term loan facility | $ 253,000 | $ 253,000 | |||
Secured Debt | $253 Million Term Loan Facility | Predecessor | |||||
Line of Credit Facility | |||||
Face amount of term loan facility | $ 253,000 | $ 253,000 |
LEGAL PROCEEDINGS (Details 2)
LEGAL PROCEEDINGS (Details 2) - complaint | May. 26, 2015 | Apr. 27, 2015 |
LEGAL PROCEEDINGS | ||
Number of claims filed | 6 | |
Number of complaints consolidated | 6 |
RESTATEMENT OF CONSOLIDATED 102
RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS OF THE PREDECESSOR COMPANY (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 09, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Jul. 09, 2014 | Dec. 31, 2015 | Dec. 31, 2013 |
RESTATEMENT OF CONSOLIDATING FINANCIAL STATEMENTS OF THE PREDECESSOR COMPANY | |||||||||||||
Loss before reorganization items, net | $ (210,771) | $ (251,462) | |||||||||||
Reorganization items, net | (1,591) | (1,085) | |||||||||||
Loss before income taxes | (212,362) | (252,547) | |||||||||||
Income tax expense | (996) | (1,821) | |||||||||||
Net loss | $ (49,498) | $ (73,803) | $ (51,952) | $ (79,115) | $ (190,795) | $ (22,562) | (213,358) | (254,368) | |||||
Less: Net loss attributable to noncontrolling interest | (7,178) | (11,620) | (40,673) | (26,792) | (4,272) | (31,064) | (59,471) | ||||||
Net loss attributable to Genco Shipping & Trading Limited | $ (49,498) | $ (66,625) | $ (40,332) | $ (38,442) | $ (164,003) | $ (18,290) | $ (182,294) | $ (194,897) | |||||
Net (loss) income per share-basic | $ (0.69) | $ (0.95) | $ (0.67) | $ (0.64) | $ (2.72) | $ (0.30) | $ (3.02) | $ (2.96) | |||||
Net (loss) income per share-diluted | $ (0.69) | $ (0.95) | $ (0.67) | $ (0.64) | $ (2.72) | $ (0.30) | $ (3.02) | $ (2.96) | |||||
Weighted average common shares outstanding-basic | 72,174,041,000 | 69,824,338,000 | 60,487,189,000 | 60,430,789,000 | 60,415,981,000 | 60,299,766,000 | 60,360,515 | 65,831,637 | |||||
Weighted average common shares outstanding-diluted | 72,174,041,000 | 69,824,338,000 | 60,487,189,000 | 60,430,789,000 | 60,415,981,000 | 60,299,766,000 | 60,360,515 | 65,831,637 | |||||
Recording of goodwill in fresh-start accounting | $ 166,067 | $ 166,067 | |||||||||||
Total | $ (1,591) | $ (1,085) | |||||||||||
Predecessor | |||||||||||||
RESTATEMENT OF CONSOLIDATING FINANCIAL STATEMENTS OF THE PREDECESSOR COMPANY | |||||||||||||
Loss before reorganization items, net | (96,795) | $ (155,123) | |||||||||||
Reorganization items, net | (915,640) | ||||||||||||
Loss before income taxes | (1,012,435) | (155,123) | |||||||||||
Income tax expense | (815) | (1,898) | |||||||||||
Net loss | (905,455) | $ (65,557) | $ (42,238) | (1,013,250) | (157,021) | ||||||||
Less: Net loss attributable to noncontrolling interest | (53,935) | (5,033) | (3,133) | (62,101) | (9,280) | ||||||||
Net loss attributable to Genco Shipping & Trading Limited | $ (851,520) | $ (60,524) | $ (39,105) | $ (951,149) | $ (147,741) | ||||||||
Net (loss) income per share-basic | $ (19.54) | $ (1.39) | $ (0.90) | $ (21.83) | $ (3.42) | ||||||||
Net (loss) income per share-diluted | $ (19.54) | $ (1.39) | $ (0.90) | $ (21.83) | $ (3.42) | ||||||||
Weighted average common shares outstanding-basic | 43,568,942,000 | 43,568,942,000 | 43,568,942,000 | 43,568,942 | 43,249,070 | ||||||||
Weighted average common shares outstanding-diluted | 43,568,942,000 | 43,568,942,000 | 43,568,942,000 | 43,568,942 | 43,249,070 | ||||||||
Issuance of Successor equity | $ (1,133,900) | ||||||||||||
Total | (915,640) | ||||||||||||
As Reported | Predecessor | |||||||||||||
RESTATEMENT OF CONSOLIDATING FINANCIAL STATEMENTS OF THE PREDECESSOR COMPANY | |||||||||||||
Loss before reorganization items, net | (96,795) | ||||||||||||
Reorganization items, net | 882,167 | ||||||||||||
Loss before income taxes | 785,372 | ||||||||||||
Income tax expense | (815) | ||||||||||||
Net loss | 784,557 | ||||||||||||
Less: Net loss attributable to noncontrolling interest | (8,734) | ||||||||||||
Net loss attributable to Genco Shipping & Trading Limited | $ 793,291 | ||||||||||||
Net (loss) income per share-basic | $ 18.21 | ||||||||||||
Net (loss) income per share-diluted | $ 18.21 | ||||||||||||
Weighted average common shares outstanding-basic | 43,568,942 | ||||||||||||
Weighted average common shares outstanding-diluted | 43,568,942 | ||||||||||||
Total | $ 882,167 | ||||||||||||
Adjustment | Predecessor | |||||||||||||
RESTATEMENT OF CONSOLIDATING FINANCIAL STATEMENTS OF THE PREDECESSOR COMPANY | |||||||||||||
Reorganization items, net | $ (1,797,807) | (1,797,807) | |||||||||||
Loss before income taxes | (1,797,807) | ||||||||||||
Net loss | (1,797,807) | ||||||||||||
Less: Net loss attributable to noncontrolling interest | (53,367) | ||||||||||||
Net loss attributable to Genco Shipping & Trading Limited | (1,744,440) | ||||||||||||
Discharge of Predecessor equity | (829,974) | (829,974) | |||||||||||
Issuance of Successor equity | (1,133,900) | ||||||||||||
Recording of goodwill in fresh-start accounting | 166,067 | 166,067 | |||||||||||
Total | $ (1,797,807) | $ (1,797,807) |
RESTATEMENT OF CONSOLIDATED 103
RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS OF THE PREDECESSOR COMPANY (Details 2) - USD ($) $ in Thousands | Jul. 09, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Jul. 09, 2014 | Dec. 31, 2015 | Dec. 31, 2013 |
RESTATEMENT OF CONSOLIDATING FINANCIAL STATEMENTS OF THE PREDECESSOR COMPANY | |||||||||||||
Net (loss) income | $ (49,498) | $ (73,803) | $ (51,952) | $ (79,115) | $ (190,795) | $ (22,562) | $ (213,358) | $ (254,368) | |||||
Change in unrealized gain/loss on investments | (25,317) | 25,296 | |||||||||||
Other comprehensive income (loss) | (25,317) | 25,296 | |||||||||||
Comprehensive loss | (238,675) | (229,072) | |||||||||||
Less: Comprehensive loss attributable to noncontrolling interest | (31,064) | (59,471) | |||||||||||
Comprehensive loss attributable to Genco Shipping & Trading Limited | $ (207,611) | $ (169,601) | |||||||||||
Predecessor | |||||||||||||
RESTATEMENT OF CONSOLIDATING FINANCIAL STATEMENTS OF THE PREDECESSOR COMPANY | |||||||||||||
Net (loss) income | $ (905,455) | $ (65,557) | $ (42,238) | $ (1,013,250) | $ (157,021) | ||||||||
Change in unrealized gain/loss on investments | (25,766) | 56,482 | |||||||||||
Unrealized gain on cash flow hedges, net | 2,401 | 9,081 | |||||||||||
Other comprehensive income (loss) | (23,365) | 65,563 | |||||||||||
Comprehensive loss | (1,036,615) | (91,458) | |||||||||||
Less: Comprehensive loss attributable to noncontrolling interest | (62,101) | (9,280) | |||||||||||
Comprehensive loss attributable to Genco Shipping & Trading Limited | (974,514) | $ (82,178) | |||||||||||
As Reported | Predecessor | |||||||||||||
RESTATEMENT OF CONSOLIDATING FINANCIAL STATEMENTS OF THE PREDECESSOR COMPANY | |||||||||||||
Net (loss) income | 784,557 | ||||||||||||
Change in unrealized gain/loss on investments | (25,766) | ||||||||||||
Unrealized gain on cash flow hedges, net | 2,401 | ||||||||||||
Other comprehensive income (loss) | (23,365) | ||||||||||||
Comprehensive loss | 761,192 | ||||||||||||
Less: Comprehensive loss attributable to noncontrolling interest | (8,734) | ||||||||||||
Comprehensive loss attributable to Genco Shipping & Trading Limited | 769,926 | ||||||||||||
Adjustment | Predecessor | |||||||||||||
RESTATEMENT OF CONSOLIDATING FINANCIAL STATEMENTS OF THE PREDECESSOR COMPANY | |||||||||||||
Net (loss) income | (1,797,807) | ||||||||||||
Comprehensive loss | (1,797,807) | ||||||||||||
Less: Comprehensive loss attributable to noncontrolling interest | (53,367) | ||||||||||||
Comprehensive loss attributable to Genco Shipping & Trading Limited | $ (1,744,440) |
RESTATEMENT OF CONSOLIDATED 104
RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS OF THE PREDECESSOR COMPANY (Details 3) $ in Thousands | Jul. 09, 2014USD ($) |
Fresh-Start Adjustment, Increase (Decrease), Current Assets Abstract | |
Cash and cash equivalents | $ 136,077 |
Restricted cash | 9,975 |
Due from charterers, net | 13,194 |
Prepaid expenses and other current assets | 30,759 |
Time charters acquired | 450 |
Total current assets | 190,455 |
Noncurrent assets: | |
Vessels, net | 1,538,849 |
Deposits on vessels | 30,975 |
Deferred drydock, net | 188 |
Deferred financing costs, net | 7,060 |
Fixed assets, net | 610 |
Other noncurrent assets | 514 |
Restricted cash | 300 |
Investments | 51,804 |
Goodwill | 166,067 |
Total non current assets | 1,796,367 |
Total assets | 1,986,822 |
Current liabilities not subject to compromise: | |
Accounts payable and accrued expenses | 65,725 |
Current portion of long-term debt | 32,242 |
Deferred revenue | 997 |
Total current liabilities not subject to compromise | 98,964 |
Noncurrent liabilities not subject to compromise: | |
Long-term debt | 375,789 |
Total noncurrent liabilities not subject to compromises | 375,789 |
Total liabilities | 474,753 |
Equity: | |
Common stock | 603 |
Additional paid-in capital | 1,232,397 |
Total Genco Shipping & Trading Limited shareholders' equity | 1,233,000 |
Noncontrolling interest | 279,069 |
Total equity | 1,512,069 |
Total liabilities and equity | 1,986,822 |
Discharge of Debt | |
Fresh-Start Adjustment, Increase (Decrease), Current Assets Abstract | |
Cash and cash equivalents | 87,526 |
Total current assets | 87,526 |
Noncurrent assets: | |
Deferred financing costs, net | (11,893) |
Total non current assets | (11,893) |
Total assets | 75,633 |
Current liabilities not subject to compromise: | |
Accounts payable and accrued expenses | (1,086) |
Total current liabilities not subject to compromise | (1,086) |
Noncurrent liabilities not subject to compromise: | |
Total liabilities subject to compromise | (1,194,687) |
Total liabilities | (1,195,773) |
Equity: | |
Common stock | 603 |
Additional paid-in capital | 1,232,397 |
Accumulated other comprehensive income | (30,357) |
Retained (deficit) earnings | 918,338 |
Total Genco Shipping & Trading Limited shareholders' equity | 1,271,406 |
Total equity | 1,271,406 |
Total liabilities and equity | 75,633 |
Revaluation Of Assets And Liabilities | |
Fresh-Start Adjustment, Increase (Decrease), Current Assets Abstract | |
Prepaid expenses and other current assets | (41) |
Time charters acquired | 450 |
Total current assets | 409 |
Noncurrent assets: | |
Vessels, net | (1,065,882) |
Deposits on vessels | 2,317 |
Deferred drydock, net | (16,396) |
Fixed assets, net | (3,443) |
Goodwill | 166,067 |
Total non current assets | (917,337) |
Total assets | (916,928) |
Current liabilities not subject to compromise: | |
Time charters acquired | (16) |
Total current liabilities not subject to compromise | (16) |
Noncurrent liabilities not subject to compromise: | |
Long-term lease obligations | (2,670) |
Total noncurrent liabilities not subject to compromises | (2,670) |
Total liabilities | (2,686) |
Equity: | |
Retained (deficit) earnings | (860,875) |
Total Genco Shipping & Trading Limited shareholders' equity | (860,875) |
Noncontrolling interest | (53,367) |
Total equity | (914,242) |
Total liabilities and equity | (916,928) |
Predecessor | |
Fresh-Start Adjustment, Increase (Decrease), Current Assets Abstract | |
Cash and cash equivalents | 48,551 |
Restricted cash | 9,975 |
Due from charterers, net | 13,194 |
Prepaid expenses and other current assets | 30,800 |
Total current assets | 102,520 |
Noncurrent assets: | |
Vessels, net | 2,604,731 |
Deposits on vessels | 28,658 |
Deferred drydock, net | 16,584 |
Deferred financing costs, net | 18,953 |
Fixed assets, net | 4,053 |
Other noncurrent assets | 514 |
Restricted cash | 300 |
Investments | 51,804 |
Total non current assets | 2,725,597 |
Total assets | 2,828,117 |
Current liabilities not subject to compromise: | |
Accounts payable and accrued expenses | 60,333 |
Current portion of long-term debt | 4,250 |
Deferred revenue | 997 |
Time charters acquired | 16 |
Total current liabilities not subject to compromise | 65,596 |
Noncurrent liabilities not subject to compromise: | |
Long-term lease obligations | 2,670 |
Long-term debt | 161,500 |
Total noncurrent liabilities not subject to compromises | 164,170 |
Total liabilities subject to compromise | 1,443,446 |
Total liabilities | 1,673,212 |
Equity: | |
Common stock | 445 |
Additional paid-in capital | 849,130 |
Accumulated other comprehensive income | 30,357 |
Retained (deficit) earnings | (57,463) |
Total Genco Shipping & Trading Limited shareholders' equity | 822,469 |
Noncontrolling interest | 332,436 |
Total equity | 1,154,905 |
Total liabilities and equity | 2,828,117 |
Predecessor | Discharge of Debt | |
Equity: | |
Common stock | (445) |
Additional paid-in capital | (849,130) |
Predecessor | Revaluation Of Assets And Liabilities | |
Fresh-Start Adjustment, Increase (Decrease), Current Assets Abstract | |
Prepaid expenses and other current assets | 179 |
Time charters acquired | 434 |
As Reported | Discharge of Debt | |
Fresh-Start Adjustment, Increase (Decrease), Current Assets Abstract | |
Cash and cash equivalents | 87,526 |
Total current assets | 87,526 |
Noncurrent assets: | |
Deferred financing costs, net | (11,893) |
Total non current assets | (11,893) |
Total assets | 75,633 |
Current liabilities not subject to compromise: | |
Accounts payable and accrued expenses | (1,086) |
Total current liabilities not subject to compromise | (1,086) |
Noncurrent liabilities not subject to compromise: | |
Total liabilities subject to compromise | (1,194,687) |
Total liabilities | (1,195,773) |
Equity: | |
Common stock | 603 |
Additional paid-in capital | 1,232,397 |
Accumulated other comprehensive income | 4,574 |
Retained (deficit) earnings | 936,774 |
Total Genco Shipping & Trading Limited shareholders' equity | 1,324,773 |
Noncontrolling interest | (53,367) |
Total equity | 1,271,406 |
Total liabilities and equity | 75,633 |
As Reported | Revaluation Of Assets And Liabilities | |
Fresh-Start Adjustment, Increase (Decrease), Current Assets Abstract | |
Prepaid expenses and other current assets | (41) |
Time charters acquired | 450 |
Total current assets | 409 |
Noncurrent assets: | |
Vessels, net | (1,065,882) |
Deposits on vessels | 2,317 |
Deferred drydock, net | (16,396) |
Fixed assets, net | (3,443) |
Goodwill | 166,067 |
Total non current assets | (917,337) |
Total assets | (916,928) |
Current liabilities not subject to compromise: | |
Time charters acquired | (16) |
Total current liabilities not subject to compromise | (16) |
Noncurrent liabilities not subject to compromise: | |
Long-term lease obligations | (2,670) |
Total noncurrent liabilities not subject to compromises | (2,670) |
Total liabilities | (2,686) |
Equity: | |
Accumulated other comprehensive income | (34,931) |
Retained (deficit) earnings | (879,311) |
Total Genco Shipping & Trading Limited shareholders' equity | (914,242) |
Total equity | (914,242) |
Total liabilities and equity | (916,928) |
As Reported | Predecessor | Discharge of Debt | |
Equity: | |
Common stock | (445) |
Additional paid-in capital | (849,130) |
Adjustment | Discharge of Debt | |
Equity: | |
Accumulated other comprehensive income | (34,931) |
Retained (deficit) earnings | (18,436) |
Total Genco Shipping & Trading Limited shareholders' equity | (53,367) |
Noncontrolling interest | 53,367 |
Adjustment | Revaluation Of Assets And Liabilities | |
Equity: | |
Accumulated other comprehensive income | 34,931 |
Retained (deficit) earnings | 18,436 |
Total Genco Shipping & Trading Limited shareholders' equity | 53,367 |
Noncontrolling interest | (53,367) |
Adjustment | Predecessor | |
Noncurrent assets: | |
Goodwill | $ 166,067 |
RESTATEMENT OF CONSOLIDATING105
RESTATEMENT OF CONSOLIDATING FINANCIAL STATEMENTS OF THE SUCCESSOR COMPANY (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2015 | Jul. 09, 2014 | |
RESTATEMENT OF CONSOLIDATING FINANCIAL STATEMENTS OF THE PREDECESSOR COMPANY | |||||||||
Net loss attributable to GS&T | $ 49,498 | $ 66,625 | $ 40,332 | $ 38,442 | $ 164,003 | $ 18,290 | $ 182,294 | $ 194,897 | |
Net loss per share - basic and diluted | $ 3.02 | ||||||||
Net loss attributable to noncontrolling interest | 7,178 | 11,620 | 40,673 | 26,792 | 4,272 | $ 31,064 | 59,471 | ||
Net loss | 49,498 | $ 73,803 | $ 51,952 | $ 79,115 | 190,795 | $ 22,562 | 213,358 | 254,368 | |
GS&T shareholders' equity | 1,105,966 | 1,044,201 | 1,044,201 | 1,105,966 | |||||
Noncontrolling interest | 248,573 | 248,573 | |||||||
Total equity | $ 1,105,966 | 1,292,774 | 1,292,774 | $ 1,105,966 | $ 1,512,069 | ||||
As Reported | |||||||||
RESTATEMENT OF CONSOLIDATING FINANCIAL STATEMENTS OF THE PREDECESSOR COMPANY | |||||||||
Net loss attributable to GS&T | $ 204,117 | ||||||||
Net loss per share - basic and diluted | $ 3.38 | ||||||||
Net loss attributable to noncontrolling interest | $ 9,241 | ||||||||
GS&T shareholders' equity | 1,022,378 | 1,022,378 | |||||||
Noncontrolling interest | 270,396 | 270,396 | |||||||
Restatement Adjustment | |||||||||
RESTATEMENT OF CONSOLIDATING FINANCIAL STATEMENTS OF THE PREDECESSOR COMPANY | |||||||||
Net loss attributable to GS&T | (21,823) | ||||||||
Net loss attributable to noncontrolling interest | 21,823 | ||||||||
GS&T shareholders' equity | 21,823 | 21,823 | |||||||
Noncontrolling interest | $ (21,823) | $ (21,823) |
UNAUDITED QUARTERLY RESULTS 106
UNAUDITED QUARTERLY RESULTS OF OPERATIONS (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 09, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Jul. 09, 2014 | Dec. 31, 2015 | Dec. 31, 2013 |
UNAUDITED QUARTERLY RESULTS OF OPERATIONS | |||||||||||||
Goodwill impairment | $ 166,067 | $ 166,067 | |||||||||||
Impairment of investment | $ 32,536 | 0 | $ 39,893 | ||||||||||
Voyage revenues | $ 34,236 | 49,167 | $ 33,772 | $ 33,609 | 54,874 | $ 43,943 | 98,817 | 150,784 | |||||
Operating loss | (37,616) | (35,294) | (46,194) | (73,763) | (185,796) | (17,436) | (203,233) | (192,867) | |||||
Net loss | (49,498) | (73,803) | (51,952) | (79,115) | (190,795) | (22,562) | (213,358) | (254,368) | |||||
Net loss attributable to noncontrolling interest | (7,178) | (11,620) | (40,673) | (26,792) | (4,272) | (31,064) | (59,471) | ||||||
Net loss attributable to Genco Shipping& Trading Limited | $ (49,498) | $ (66,625) | $ (40,332) | $ (38,442) | $ (164,003) | $ (18,290) | $ (182,294) | $ (194,897) | |||||
Net loss per share-basic | $ (0.69) | $ (0.95) | $ (0.67) | $ (0.64) | $ (2.72) | $ (0.30) | $ (3.02) | $ (2.96) | |||||
Net loss per share-diluted | $ (0.69) | $ (0.95) | $ (0.67) | $ (0.64) | $ (2.72) | $ (0.30) | $ (3.02) | $ (2.96) | |||||
Weighted average common shares outstanding - Basic | 72,174,041,000 | 69,824,338,000 | 60,487,189,000 | 60,430,789,000 | 60,415,981,000 | 60,299,766,000 | 60,360,515 | 65,831,637 | |||||
Weighted average common shares outstanding - Diluted | 72,174,041,000 | 69,824,338,000 | 60,487,189,000 | 60,430,789,000 | 60,415,981,000 | 60,299,766,000 | 60,360,515 | 65,831,637 | |||||
Predecessor | |||||||||||||
UNAUDITED QUARTERLY RESULTS OF OPERATIONS | |||||||||||||
Impairment of investment | $ 0 | $ 0 | |||||||||||
Voyage revenues | $ 4,034 | $ 51,545 | $ 63,180 | 118,759 | 224,179 | ||||||||
Operating loss | (8,356) | (26,552) | (20,766) | (55,673) | (66,906) | ||||||||
Net loss | (905,455) | (65,557) | (42,238) | (1,013,250) | (157,021) | ||||||||
Net loss attributable to noncontrolling interest | (53,935) | (5,033) | (3,133) | (62,101) | (9,280) | ||||||||
Net loss attributable to Genco Shipping& Trading Limited | $ (851,520) | $ (60,524) | $ (39,105) | $ (951,149) | $ (147,741) | ||||||||
Net loss per share-basic | $ (19.54) | $ (1.39) | $ (0.90) | $ (21.83) | $ (3.42) | ||||||||
Net loss per share-diluted | $ (19.54) | $ (1.39) | $ (0.90) | $ (21.83) | $ (3.42) | ||||||||
Weighted average common shares outstanding - Basic | 43,568,942,000 | 43,568,942,000 | 43,568,942,000 | 43,568,942 | 43,249,070 | ||||||||
Weighted average common shares outstanding - Diluted | 43,568,942,000 | 43,568,942,000 | 43,568,942,000 | 43,568,942 | 43,249,070 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Secured Debt - $253 Million Term Loan Facility - USD ($) $ in Millions | Mar. 11, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Subsequent Events | |||
Maximum borrowing capacity | $ 253 | $ 253 | |
Subsequent event | |||
Subsequent Events | |||
Maximum borrowing capacity | $ 253 |
Uncategorized Items - gnk-20151
Label | Element | Value |
Cancellation Of Common Stock And Accumulated Deficit | gnk_CancellationOfCommonStockAndAccumulatedDeficit | $ (34,930,000) |
Issuance of new equity interests | gnk_IssuanceOfNewEquityInterests | 1,233,000,000 |
Elimination Of Accumulated Other Comprehensive Income | gnk_EliminationOfAccumulatedOtherComprehensiveIncome | 30,357,000 |
Accumulated Other Comprehensive Income [Member] | ||
Elimination Of Accumulated Other Comprehensive Income | gnk_EliminationOfAccumulatedOtherComprehensiveIncome | 30,357,000 |
Additional Paid In Capital [Member] | ||
Cancellation Of Common Stock And Accumulated Deficit | gnk_CancellationOfCommonStockAndAccumulatedDeficit | 849,130,000 |
Issuance of new equity interests | gnk_IssuanceOfNewEquityInterests | 1,232,397,000 |
Common Stock [Member] | ||
Cancellation Of Common Stock And Accumulated Deficit | gnk_CancellationOfCommonStockAndAccumulatedDeficit | 445,000 |
Issuance of new equity interests | gnk_IssuanceOfNewEquityInterests | 603,000 |
Parent [Member] | ||
Cancellation Of Common Stock And Accumulated Deficit | gnk_CancellationOfCommonStockAndAccumulatedDeficit | (34,930,000) |
Issuance of new equity interests | gnk_IssuanceOfNewEquityInterests | 1,233,000,000 |
Elimination Of Accumulated Other Comprehensive Income | gnk_EliminationOfAccumulatedOtherComprehensiveIncome | 30,357,000 |
Retained Earnings [Member] | ||
Cancellation Of Common Stock And Accumulated Deficit | gnk_CancellationOfCommonStockAndAccumulatedDeficit | $ (884,505,000) |