Gener8 Maritime has been forced to restate financial statements for 2017 as a result of a technical accounting issue related to its violation of a bank-loan covenant.
While Gener8 was in compliance with all covenants at 31 December, “management has determined it was virtually certain” that it would break a covenant covering interest expense coverage by 31 March.
“As a result of the foregoing, management determined a material adjustment was required to correct the classification of approximately $1bn of the company’s outstanding indebtedness under its senior secured credit facilities… as current liabilities rather than noncurrent liabilities as of December 31, 2017.
