Question · Q3 2016
Donald McLee of Wells Fargo Securities questioned the rationale behind the $118.9 million impairment on seven Panamax vessels, the likelihood of future write-downs, and the impact on loan covenants. He also inquired about the company's view on its recent stock price surge.
Answer
CFO Andreas Michalopoulos clarified that the impairment was a standard accounting test triggered by severe market deterioration and does not affect loan-to-value covenants, which are based on market values. President Anastasios Margaronis stated it is company policy not to comment on stock performance.