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NNC signed a deal settling a USD240mlndebt with NBE

Monday 28 January 2019 07:54 AM


By Amany El-Azazi

National Navigation Company sealed a deal to settle USD240mln dues owed to the National Bank of Egypt.

"The deal, signed a few days ago, obligates NBE to funnel USD140mln into NNC's capital, placing the bank second among shareholders with a 39.9 percent stake," said chairman and managing director at NNC Tamer Abd El-Aleem, adding that the company is relying on its own revenues for the repayment of  the remaining amount of debt in the span of 10-year period.

NNC's general assembly meeting approved the settlement deal after modifying articles 6 and 7 of its articles of associations governing capital contributions, he explained.

NNC's  debts started to accumulate back in 2007 after it received a USD251mln loan in order to finance 4 ships  weighing as much as 81,000 ton  each as well as  two ships weighing 58,000 ton each against bi-annual installments worth USD12.58mln  wrapping up in 2011. The Financial Crisis of 2009  caused world trade to falter and the company to default on its debts.

NNC, founded in 1974, is engaged in the business of owning, selling, purchasing and renting various types of vessels, together with river, land and sea-based  transportation. 

NNC plans to refurbish a fleet of 13 ships, as renovation plans are laid out in accordance with available liquidity and in par with world standards, he elaborated.