Awilco amends LNG pair financial covenants

Awilco LNG has agreed certain amendments to financial covenants in the sale/leaseback deals for its LNG tanker pair.

The company said in its statement that it has agreed with CCB Financial Leasing (CCBFL) to make certain temporary amendments to financial covenants in the sale/leaseback facilities for the WilForce and the WilPride.

The required minimum consolidated cash and cash equivalents financial covenant of $10.0 million has been reduced to $2.0 millio.n

Additionally, the required consolidated positive working capital financial covenant has been waived, both effective for a six-month period from July 1, 2020, to December 31, 2020.

The amendments to covenants are a precautionary measure as a result of the current weak market conditions in LNG transportation as a consequence of Covid-19 leading to a temporary reduction in demand for energy.

Market analysts expect an improvement of the LNG shipping market in the second half of 2020 as the world reopens from lockdowns and economies recover.