Seanergy Battles to Repay Debt, CFO Resigns
Two directors voluntarily resign to cut costs, debt as of June 30 at seven times market cap
Seanergy Maritime Holdings Corp said chief financial officer resigned and the dry bulk shipper repeated concerns about its ability to stay in business after posting another quarter of losses.
Shares of Seanergy, which sold three ships in July, were down 12 percent at $1.87 in morning trade on the Nasdaq.
The troubles at Athens-based Seanergy underscore the sector-wide slump in rates, which has forced several shippers to restructure or seek bankruptcy protection in the past two years.
CFO Christina Anagnostara will step down on Nov. 1 but will remain on the board.
In a cost-saving move, Chairman Dale Ploughman and director George Tsimpis voluntarily resigned from the board.
The company posted its seventh loss in 10 quarters as daily rates for transporting commodities such as coal, grains and cement remained low due to an oversupply of vessels and soft demand.
Revenue fell 62 percent in the second quarter as average rates earned declined to $6,992 from $8,763 a year earlier.
Seanergy's outstanding debt of $173.1 million is almost seven times its current market valuation.
The company sold three ship-owning units in July, halving its fleet size from the eight dry bulk carriers it owned at the beginning of the year.
Seanergy warned of its ability to carry on as a going concern in June.
The net loss narrowed to $14.8 million, or $1.23 per share, in the second quarter from $28.4 million, or $2.37 per share, a year earlier.
Stamatis Tsantanis has been appointed as chairman of the board, the company said.