Business
Receipt of letter from GMS' lending banks
Receipt of letter from GMS' lending banks.
About this update from Gulf Marine Services Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 7182E\n Gulf Marine Services PLC\n 09 November 2020\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n FOR IMMEDIATE RELEASE\n \n \n \n \n \n \n \n 9 November 2020\n \n \n \n \n \n \n \n \n Gulf Marine Services PLC\n \n \n ('GMS' or the 'Company')\n \n \n \n \n \n Receipt of letter from GMS' lending banks\n \n \n \n \n \n GMS announces that it has received a letter (the \"Bank Letter\"), a copy of which is attached hereto, from the agent on behalf of all six of its lenders (the \"Banks\") in relation, inter alia, to the votes of Seafox International Limited (\"Seafox\"), Mazrui Investments LLC (\"Mazrui\") and Horizon Energy LLC (\"Horizon\") at the Company's general meeting of shareholders held on 27 October 2020 against, and therefore defeating, the resolutions in respect of the Company's proposed issuance of warrants to the Banks by the end of 2020 pursuant to the terms of its financing documents (the \"Finance Documents\").\n \n \n \n \n \n In particular, the agent on behalf of the Banks has reiterated that the Banks \"… are not willing to renegotiate any of the terms of the Finance Documents and expect the Company and the Parent [the Obligors] to perform all of their respective obligations under the [Finance Documents]. This position continues to hold regardless of the composition of the Company's Board or the appointment of new directors. The Banks' primary concern remains the financial health of the Obligors and their ability to continue their business operations effectively and at the same time fulfil their contractual obligations to the Banks….\"\n \n \n \n \n \n In addition, the Company received a separate letter from ADCB, the second largest lender in the bank syndicate, relating to the same matter, in which it noted, \"… with significant concern, that the recent vote by the Activist Shareholders [Seafox, Mazrui and Horizon] against the issuance of the Warrants represents a repudiation of the [Finance Documents]. The actions by the Activist Shareholders will, if not properly challenged, cause [GMS] to breach [its] obligations under the [Finance Documents]….If this does occur and the Event of Default is not cured, ADCB has no option but to seek to enforce its rights under [the Finance Documents]. In all likelihood, this will force GMS t...