EX-12.1 5 a2224913zex-12_1.htm EX-12.1

EXHIBIT 12.1

 

GENCO SHIPPING & TRADING LIMITED

CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Amounts in thousands of dollars, except ratios)

 

 

 

Genco Predecessor Company (A)

 

Genco Successor Company (A)

 

 

 

Year Ended December 31,

 

Period from
January 1 to
July 9,

 

Period from
July 9 to
December 31,

 

Three Months
Ended March

 

 

 

2010

 

2011

 

2012

 

2013

 

2014

 

2014

 

31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

147,409

 

25,068

 

(157,776

)

(157,021

)

784,557

(B)

(213,358

)(C)

(79,115

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

73,252

 

87,359

 

88,498

 

88,766

 

41,613

 

8,308

 

4,599

 

Plus amortization of capitalized interest

 

452

 

466

 

475

 

474

 

245

 

1

(D)

4

(D)

Less capitalized interest

 

(446

)

(179

)

—

 

—

 

(295

)

(400

)

(124

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

$

220,667

 

$

112,714

 

$

(68,803

)

$

(67,781

)

$

826,120

 

$

(205,449

)

$

(74,636

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expensed and capitalized interest

 

71,119

 

83,713

 

82,145

 

79,100

 

36,895

 

7,175

 

3,961

 

Amortization of deferred financing costs

 

1,977

 

3,188

 

5,413

 

9,116

 

4,461

 

845

 

487

 

Interest component of rent expense

 

156

 

458

 

940

 

550

 

257

 

288

 

151

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fixed charges

 

$

73,252

 

$

87,359

 

$

88,498

 

$

88,766

 

$

41,613

 

$

8,308

 

$

4,599

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges (E) 

 

3.01

 

1.29

 

N/A

 

N/A

 

19.85

 

N/A

 

N/A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deficiency of earnings available to cover fixed charges (E)

 

 

 

 

 

$

157,301

 

$

156,547

 

 

 

$

213,757

 

$

79,235

 

 

(A) As a result of our bankruptcy, we adopted fresh start reporting on July 9, 2014 in accordance with provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 852, “Reorganizations” (“ASC 852”). The period from July 9 to December 31, 2014 (“Genco Successor Company”) and the period from January 1 to July 9, 2014 (“Genco Predecessor Company”) are distinct reporting periods as a result of our emergence from bankruptcy on July 9, 2014 as reported in our consolidated financial statements. Our financial condition and results of operations from and after July 9, 2014 are not comparable to the financial condition or results of operations reflected in its other historical financial statements shown due to the application of fresh start reporting.

 

(B) The net effect of all fresh start accounting adjustments and other reorganization items resulted in income of $882,167, which is reflected in the statement of operations for the period January 1, 2014 to July 9, 2014.

 

(C)The statement of operations includes a charge of $166,067 for impairment of goodwill, which is reflected in the statement of operations for the period July 9, 2014 to December 31, 2014.

 

(D) Assumed the amortization of capitalized interest incurred by the Predecessor was eliminated upon emergence due to the revaluation of all vessels to fair market value.

 

(E) The ratio of earnings for the quarter ended March 31, 2015, the period from July 9, 2014 to December 31, 2014 and the years ended December 31, 2013 and 2012 were inadequate to cover fixed charges.  The deficiency of earnings indicated for each period would have been necessary to bring the ratio of earnings to fixed charges to 1.0.