Navios Maritime Holdings and Navios Maritime Acquisition Corporation have terminated a controversial loan agreement signed by the two companies in March. No borrowings had been made under the revolver.
Under the loan agreement, Navios Maritime Acquisition Corporation agreed to provide a revolving loan facility of up to $50m to Navios Maritime Holdings, a move that sparked litigation threats from investors, who felt the move to shore up dry bulk operations by taking $50m from a tanker sister firm would hit the valuation of the latter. Ten days ago a lawsuit was tabled by two investors against the loan move, something that looks to have sparked the Angeliki Frangou-led group to recant.
Navios said in a release it was ditching the financial transaction as it was in both companies’ “best interests to avoid expensive and unnecessary litigation”.
J Mintzmyer, president of Mintzmyer Investments, a vocal critic of the loan, told Splash: “This is victory for the small investor.”In a report last month for the website Seeking Alpha, Mintzmyer had described the loan as a “total disgrace”.
