Dubai-based Gulf Navigation Holding, a leading maritime and shipping company, has signed a settlement agreement with one of its major creditors, Nordic American Tankers Limited (NAT), Bermuda.

This was announced today in a formal statement delivered by Gulf Navigation to the Dubai Financial Market (DFM).

The settlement follows the company’s recent report of a net profit growth of 172 per cent to Dh10.042 million ($2.74 million) in the first half of 2015 amidst intensive efforts to address creditor issues. The company now has a total capital of Dh551.7 million ($150.2 million), it said.

Under the terms of the agreement with NAT, Gulf Navigation will issue Mandatory Convertible Bonds (MCBs) with a face value of Dh37.34 million ($10.17 million) as full and final settlement for claims made by NAT.

The MCBs will be issued prior to August 20, subject to approval from the Department of Economic Development and the Securities and Commodities Authority.

Gulf Navigation is currently engaged in negotiations with other creditors to reach mutually satisfactory outcomes, said the statement.

Gulf Navigation has recently appointed Capt Parag Jain as its acting CEO as part of the company’s restructuring efforts, it said.

Capt Jain is a seasoned maritime professional with over 20 years of diversified industry experience.

Hazza Baker Al Qahtani, founder and chairman of Gulf Navigation, said: “We appreciate the full support given by our shareholders, investors and government regulators in our efforts to resolve pending creditor concerns.

“They were all instrumental to our successful negotiations with NAT and will definitely be crucial to similar ongoing talks with other creditors,” he said.

“Our exceptional profit for the first half of this year validates our improving financial position and we expect to direct our focus more on future growth in the coming months,” he added. – TradeArabia News Service