Dahlman Updates On General Maritime After 10-K Extension Filing

Dahlman Rose has published a research report on General Maritime (NYSE: GMR) after the company filed for a 10-K extension and plans for a possible restructuring.

In the report, General Maritime writes "Management commented that an independent directors committee has been established to oversee the potential restructuring since Peter Georgiopoulos, the company's chairman, may have an economic interest in the counterparty expected to participate in the transaction. We believe this signals a potential issue of preferred equity to the Chairman, in addition to his private equity affiliates. We calculate Genmar's NAV at $2.20, but because of the company's high leverage ratio, NAV falls to below $1.50 if tanker values see 5% downside. As such, the pricing of any equity issue is unclear. Moreover, we note that the company's LTV ratio is estimated at above 80%, making an issuance of debt alone less probable."

Dahlman Rose maintains its Hold rating on General Maritime, which closed yesterday at $2.50.