Pangaea Logistics Solutions Announces Contract Amendment

NEWPORT, R.I., May 6, 2016 /PRNewswire/ -- Pangaea Logistics Solutions Ltd. ("Pangaea" or the "Company") PANL, a global provider of comprehensive maritime logistics solutions, today announced that the Company has agreed to amend the terms of its long term contract of affreightment ("COA") with a major aluminum producer, effective for cargo voyages commencing on or after May 1, 2016.

The customer filed for Chapter 11 bankruptcy protection on February 8, 2016.  Post-petition, the Company has continued to provide freight services.  During the bankruptcy case, Pangaea and the customer have agreed to, among other things: a lower, fixed cargo freight rate for the balance of the calendar year 2016; a freight escalation clause based on changes in the worldwide price of aluminum for years after 2016; adjustment of the freight rate by utilization of a fuel escalation clause; and settlement of pre-petition receivables outstanding from the customer for voyages prior to the Chapter 11 filing. The lower freight rates generated by the contract are expected to reduce Pangaea's revenues by approximately $4.2 million for 2016.

About Pangaea Logistics Solutions Ltd.

Pangaea Logistics Solutions Ltd. provides logistics services to a broad base of industrial customers who require the transportation of a wide variety of dry bulk cargoes including grains, pig iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite and limestone. The Company addresses the transportation needs of its customers with a comprehensive set of services and activities including cargo loading, cargo discharge, vessel chartering and voyage planning.  Learn more at www.pangaeals.com.

Contacts

Investor Relations Contacts
Thomas Rozycki
Prosek Partners
212-279-3115 ext. 208
trozycki@prosek.com

Josh Clarkson
Prosek Partners
212-279-3115 ext. 259
jclarkson@prosek.com

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/pangaea-logistics-solutions-announces-contract-amendment-300264589.html

SOURCE Pangaea Logistics Solutions Ltd.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Press Releases
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!