September 24 (SeeNews) - A group of international banks, led by Credit Suisse AG, have granted Croatian shipping company Uljanik Plovidba [ZSE:ULPL-R-A] a significant debt relief and permission to refinance an existing syndicated loan issued for the purchase of two tankers, Kastav and Pomer, the company said on Monday.
The existing credit debt, reduced by the approved discount, will be repaid in two installments, Uljanik Plovidba said in a Zagreb bourse filing.
The first installment will amount to 95% of the total new debt and will be financed by a new credit facility to be granted by a new foreign lender, while the remaining 5% will be repaid by the end of the year.
"The company expects that the relevant contractual documentation related to the refinancing of the existing credit facility and the new loan facility shall be completed and signed within the next 45 days", it said.
This financial transaction significantly reduces the overall credit exposure of Uljanik Plovidba and creates favorable conditions for its long-term survival, it added.
Uljanik Plovidba d.d. is a privately-owned Croatian ship management company.
The company was established as an integrated part of the Uljanik group, but was privatised between 1994 and 2000.