Investors

Genco Shipping & Trading Limited Takes Delivery of Capesize Newbuilding

Jul 22, 2009

Genco Commodus Commences Long-Term Time Charter

NEW YORK, July 22 /PRNewswire-FirstCall/ -- Genco Shipping & Trading Limited (NYSE: GNK) today announced that it has taken delivery of the Genco Commodus, a 170,500 dwt Capesize newbuilding. The Genco Commodus is the seventh vessel to be delivered to the Company under Genco's previously announced agreement on July 18, 2007 to acquire nine Capesize vessels from companies within the Metrostar Management Corporation group.

The Genco Commodus is expected to be delivered to its charterer, Morgan Stanley Capital Group Inc., on or about July 23, 2009 to commence a time charter for 23 to 25 months at a rate of $36,000 per day, less a 5% third party brokerage commission. Currently, Genco has approximately 68% of its fleet's estimated available days secured on contracts for the remainder of 2009 and 44% for 2010.

Genco has drawn upon its amended 10-year, $1.4 billion revolving credit facility to finance the remaining balance for the Genco Commodus. The Company expects the delivery of two additional newbuilding vessels by the end of 2009 and intends to utilize the undrawn portion of its $1.4 billion revolving credit facility as well as cash flow from operations to fund these acquisitions.

    The following table reflects the current employment of Genco's current
fleet as well as the employment or other status of vessels expected to join
Genco's fleet:


                                                                Net
                                       Charter       Cash    Revenue  Expected
                Year                  Expiration     Daily     Daily  Delivery
    Vessel      Built  Charterer         (1)         Rate (2)  Rate (3)  (4)
    --------------------------------------------------------------------------

    Capesize
     Vessels
    --------
    Genco
    Augustus    2007   Cargill
                       Inter-
                       national      December 2009
                       S.A.                            45,263    62,750     -
    Genco
    Tiberius    2007   Cargill
                       Inter-
                       national      January 2010
                       S.A.                            45,263    62,750     -
    Genco
    London      2007   SK Shipping
                       Co., Ltd      August 2010       57,500    64,250     -
    Genco
    Titus       2007   Cargill
                       Inter-
                       national      September 2011
                       S.A.                            45,000(5) 46,250     -

    Genco       2008   Cargill       August 2012
    Constantine        Inter-
                       national                        52,750(5)            -
                       S.A.
    Genco
    Hadrian     2008   Cargill
                       Inter-
                       national      October 2012
                       S.A.                            65,000(5)            -
    Genco
    Commodus    2009   Morgan
                       Stanley
                       Capital       June 2011
                       Group Inc.                      36,000               -
    Genco
    Maximus    2009(6) To Be
                       Determined
                       ("TBD")       TBD               TBD             Q3 2009
    Genco
    Claudius   2009(6) TBD           TBD               TBD             Q4 2009


    Panamax
     Vessels
    --------
    Genco
    Beauty      1999   Cargill
                       Inter-
                       national      August 2009
                       S.A.                            15,000(7)            -
    Genco
    Knight      1999   Swissmarine
                       Services
                       S.A.          September 2009    16,500(8)            -
    Genco
    Leader      1999   Baumarine AS  November 2009     20,742(9)            -

    Genco
    Vigour      1999   C Transport
                       Panamax Ltd.  October 2009      20,000(10)           -

    Genco
    Acheron     1999   Global
                       Chartering
                       Ltd (a        July 2011         55,250               -
                       subsidiary
                       of
                       ArcelorMittal
                       Group)
    Genco
    Surprise    1998   Hanjin
                       Shipping
                       Co., Ltd.     December 2010     42,100               -

    Genco
    Raptor      2007   COSCO Bulk
                       Carriers
                       Co., Ltd.     April 2012        52,800               -
    Genco
    Thunder     2007   Baumarine AS  October 2009      20,079(11)           -


    Supramax
     Vessels
    --------
    Genco
    Predator    2005   Bulkhandling
                       Handymax A/S  October 2009      Spot(12)

    Genco
    Warrior     2005   Hyundai
                       Merchant
                       Marine        November 2010
                       Co. Ltd.                        38,750               -
    Genco
    Hunter      2007   Pacific
                       Basin
                       Chartering    September 2009    16,000(13)           -
                       Ltd.
    Genco
    Cavalier    2007   Clipper
                       Bulk
                       Shipping NV   Aug / Nov 2009    12,000/              -
                                                       16,750(14)

    Handymax
     Vessels
    --------
    Genco
    Success     1997   Korea Line
                       Corporation   February 2011     33,000(15)           -
    Genco
    Carrier     1998   Louis Dreyfus
                       Corporation   March 2011        37,000               -

    Genco       1997   Pacific
    Prosperity         Basin
                       Chartering    June 2011
                       Ltd                             37,000               -
    Genco
    Wisdom      1997   Hyundai
                       Merchant
                       Marine        February 2011
                       Co. Ltd.                        34,500               -
    Genco
    Marine      1996   STX Pan
                       Ocean
                       Co. Ltd.      October 2009      13,750(16)           -
    Genco
    Muse        2001   Global
                       Maritime      Aug / Nov 2009     6,500/
                       Investments                     15,000(17)
                       Ltd.

    Handysize
     Vessels
    ---------
    Genco
    Explorer    1999   Lauritzen
                       Bulkers A/S   Aug 09/Nov 09   19,500/Spot(18)        -
    Genco
    Pioneer     1999   Lauritzen
                       Bulkers A/S   Aug 09/Nov 09   19,500/Spot(18)        -
    Genco
    Progress    1999   Lauritzen
                       Bulkers A/S   Aug 09/Nov 09   19,500/Spot(18)        -
    Genco
    Reliance    1999   Lauritzen
                       Bulkers A/S   Aug 09/Aug 10   19,500/Spot(18)        -
    Genco
    Sugar       1998   Lauritzen
                       Bulkers A/S   Aug 09/Aug 10   19,500/Spot(18)        -
    Genco
    Charger     2005   Pacific
                       Basin
                       Chartering    November 2010
                       Ltd.                             24,000              -

    Genco       2003   Pacific Basin
    Challenger         Chartering    November 2010
                       Ltd.                             24,000              -
    Genco
    Champion    2006   Pacific Basin
                       Chartering    December 2010
                       Ltd.                             24,000              -

(1) The charter expiration dates presented represent the earliest dates that our charters may be terminated in the ordinary course. Except for the Genco Titus, Genco Constantine, and Genco Hadrian under the terms of each contract, the charterer is entitled to extend the time charters from two to four months in order to complete the vessel's final voyage plus any time the vessel has been off-hire. The charterer of the Genco Titus and Genco Hadrian has the option to extend the charter for a period of one year. The Genco Constantine has the option to extend the charter for a period of eight months.

(2) Time charter rates presented are the gross daily charterhire rates before third-party commissions ranging from 1.25% to 6.25%. In a time charter, the charterer is responsible for voyage expenses such as bunkers, port expenses, agents' fees and canal dues.

(3) For the vessels acquired with a below-market time charter rate, the approximate amount of revenue on a daily basis to be recognized as revenues is displayed in the column named "Net Revenue Daily Rate" and is net of any third-party commissions. Since these vessels were acquired with existing time charters with below-market rates, we allocated the purchase price between the respective vessels and an intangible liability for the value assigned to the below-market charterhire. This intangible liability is amortized as an increase to voyage revenues over the minimum remaining term of the charter. For cash flow purposes, we will continue to receive the rate presented in the "Cash Daily Rate" column until the charter expires.

(4) Dates for vessels being delivered in the future are estimates based on guidance received from the sellers and/or the respective shipyards.

(5) These charters include a 50% index-based profit sharing component above the respective base rates listed in the table. The profit sharing between the charterer and us for each 15-day period is calculated by taking the average over that period of the published Baltic Cape Index of the four time charter routes, as reflected in daily reports. If such average is more than the base rate payable under the charter, the excess amount is allocable 50% to each of the charterer and us. A third-party brokerage commission of 3.75% based on the profit sharing amount due to us is payable out of our share.

(6) Year built for vessels being delivered in the future are estimates based on guidance received from the sellers and/or the respective shipyards.

(7) We reached an agreement to extend the time charter for an additional 3 to 5.5 months at a rate of $15,000 per day. The extended time charter commenced following the expiration of the current time charter on May 22, 2009.

(8) We have entered into a short-term time charter for approximately 3 to 5.5 months at a rate of $16,500 per day, less a 5% third-party commission. The vessel entered into the time charter following the completion of its previous time charter with SK Shipping Ltd. on June 1, 2009.

(9) We reached an agreement to enter the vessel into the Baumarine Pool with an option to convert the balance period of the charter party to a fixed rate, but only after June 1, 2009. We exercised the option to convert the balance period of the charter party to a fixed rate on June 3, 2009 at a gross rate of $20,742 per day.

(10) We have reached an agreement to charter the vessel for 3.5 to 6 months at a rate of $20,000 per day less a 5% third-party commission which commenced on July 10, 2009.

(11) We have reached an agreement to enter the vessel into the Baumarine Pool with an option to convert the balance period of the charter party to a fixed rate, but only after March 1, 2009. We exercised the option to convert the balance period of the charter party to a fixed rate on June 1, 2009 at a gross rate of $20,079 per day.

(12) We entered the vessel into the Bulkhandling Handymax Pool with an option to convert the balance period of the charter party to a fixed rate, but only after January 1, 2009. In addition to a 1.25% third-party brokerage commission, the charter party calls for a management fee.

(13) We have reached an agreement to enter into a time charter the vessel for 3 to 5 months at a rate of $16,000 per day less a 5% third-party commission which commenced on June 24, 2009.

(14) We have reached an agreement to extend the time charter for approximately 3 to 5..5 months at a rate of $16,750 per day, less a 5% third-party commission. The new time charter will commence following the expiration of the existing time charter on or about August 24, 2009.

(15) We extended the time charter for an additional 35 to 37.5 months at a rate of $40,000 per day for the first 12 months, $33,000 per day for the following 12 months, $26,000 per day for the next 12 months and $33,000 per day thereafter less a 5% third-party commission. In all cases, the rate for the duration of the time charter will average $33,000 per day. For purposes of revenue recognition, the time charter contract is reflected on a straight-line basis at approximately $33,000 per day for 35 to 37.5 months in accordance with U.S. GAAP.

(16) We have entered into a short-term time charter for approximately 3 to 5 months at a rate of $13,750 per day, less a 5% third-party commission. The vessel entered into the time charter following the completion of its previous time charter on July 6, 2009.

(17) We have reached an agreement to extend the time charter for approximately 3 to 4.5 months. The new time charter will commence following the expiration of the existing time charter on or about August 7, 2009.

(18) We have reached an agreement to enter these vessels into a spot pool managed by Lauritzen Bulkers beginning at the expiration of their current time charters in August 2009. Under the pool agreement, we can withdraw up to three vessels with three months' notice until December 31, 2009 and the remaining two vessels with 12 months' notice. After December 31, 2009, we can withdraw up to two vessels with three months' notice and the remaining three vessels with 12 months' notice.

About Genco Shipping & Trading Limited

Genco Shipping & Trading Limited transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes. Genco Shipping & Trading Limited currently owns a fleet of 33 drybulk vessels consisting of seven Capesize, eight Panamax, four Supramax, six Handymax and eight Handysize vessels, with an aggregate carrying capacity of approximately 2,567,000 dwt. After the expected delivery of two vessels the Company has agreed to acquire, Genco Shipping & Trading Limited will own a fleet of 35 drybulk vessels, consisting of nine Capesize, eight Panamax, four Supramax, six Handymax and eight Handysize vessels, with an aggregate carrying capacity of approximately 2,908,000 dwt.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements with respect to the commencement of time charters and expected delivery dates of newbuildings and are based on management's current expectations and observations. Included among the factors that, in our view, could cause actual results to differ materially from the forward looking statements contained in this press release are the following: (i) changes in demand or rates in the drybulk shipping industry; (ii) changes in the supply of or demand for drybulk products, generally or in particular regions; (iii) changes in the supply of drybulk carriers including newbuilding of vessels or lower than anticipated scrapping of older vessels; (iv) changes in rules and regulations applicable to the cargo industry, including, without limitation, legislation adopted by international organizations or by individual countries and actions taken by regulatory authorities; (v) increases in costs and expenses including but not limited to: crew wages, insurance, provisions, repairs, maintenance and general and administrative expenses; (vi) the adequacy of our insurance arrangements; (vii) changes in general domestic and international political conditions; (viii) changes in the condition of the Company's vessels or applicable maintenance or regulatory standards (which may affect, among other things, our anticipated drydocking or maintenance and repair costs) and unanticipated drydock expenditures; (ix) the number of offhire days needed to complete repairs on vessels and the timing and amount of any reimbursement by our insurance carriers for insurance claims including offhire days; (x) the Company's acquisition or disposition of vessels; (xi) the fulfillment of the closing conditions under, or the execution of customary additional documentation for, the Company's agreements to acquire a total of two drybulk vessels; (xii) the results of the investigation into the incident involving the collision of the Genco Hunter, the possible cause of and liability for such incident, and the scope of insurance coverage available to Genco for such incident; (xiii) the Company's ability to collect amounts due from and the outcome of its pending claim against Samsun Logix Corporation with respect to the terminated charter for the Genco Cavalier; (xiv) the Company's ability to collect on any damage claim for the recent collision involving the Genco Cavalier; (xv) the completion of definitive documentation with respect to time charters; and other factors listed from time to time under "Risk Factors" and other sections of our public filings with the Securities and Exchange Commission including, without limitation, the Company's Annual Report on Form 10-K for the year ended December 31, 2008 and its subsequently filed reports on Form 10-Q and Form 8-K.

SOURCE Genco Shipping & Trading Limited
07/22/2009

CONTACT: John C. Wobensmith,
Chief Financial Officer of Genco Shipping & Trading Limited,
+1-646-443-8555

Web Site: http://www.gencoshipping.com