Gulf Navigation Holding PJSC , the Dubai-based shipping company, has signed a settlement agreement with one of its major creditors, Nordic American Tankers Limited, Bermuda (NAT). The positive development was announced today in a formal statement delivered by GULFNAV to the Dubai Financial Market (DFM). The settlement follows the company's recent report of a net profit growth of 172 per cent to AED 10.042 million (USD 2.74 million) in the first half of 2015 amidst intensive efforts to address creditor issues. GULFNAV now has a total capital of AED 551.7 million.
Under the terms of the agreement with Nordic American Tankers, GULFNAV will issue Mandatory Convertible Bonds (MCBs) with a face value of AED 37.34 million as full and final settlement for claims made by NAT. MCBs will be issued prior to 20`1' August 2015, subject to approval from the Department of Economic Development and the Securities and Commodities Authority. GULFNAV is currently engaged in negotiations with other creditors to reach mutually satisfactory outcomes.