Dutch company JR Shipping Group has entered a deal with an undisclosed UK-based credit investment fund to refinance the JR Fleet Fund CV shipping fund, which has previously been used to finance the company’s 11 container feeders.
The UK-based financier has already taken over more than €126m in debt relating to JR Fleet Fund CV from German HSH Nordbank on behalf of JR Shipping Group.
The executive board of HSH Nordbank has been involved in the financing of all JR Fleet Fund CV vessels since the beginning of the fund, and granted its approval to the refinancing deal last month.
JR Shipping has been able to retain control of all 11 major vessels in its fleet as a result of the deal’s closing.
The JR Fleet Fund CV was originally established under a previous restructuring operation that was achieved in 2012 as part of a partnership between HSH Nordbank, JR Shipping Group and its CV partners.
The shipping fund is designed to facilitate the operation of all 11 vessels under one single roof in case of a crisis.
JR Shipping Group said in a statement: “A market recovery was required to make this solution sustainable, but this did not happen.
“In 2016, unfortunately, the container feeder market even experienced its fourth dip.
“Although, for a short time now the market has been improving, JR Fleet Fund CV has not yet sufficiently benefitted from it.”
JR Shipping and the credit investment fund aim to continue a long-term partnership in order to boost the shipping company’s foundation, as well as increase the possibility for banks to structure refinancing solutions for its vessels.