GENCO SHIPPING & TRADING LTD, 10-K filed on 2/27/2020
Annual Report
v3.19.3.a.u2
Document and Entity Information - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Jun. 28, 2020
Feb. 27, 2020
Document and Entity Information      
Entity Registrant Name GENCO SHIPPING & TRADING LTD    
Entity Central Index Key 0001326200    
Document Type 10-K    
Document Period End Date Dec. 31, 2019    
Amendment Flag false    
Current Fiscal Year End Date --12-31    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Filer Category Accelerated Filer    
Entity Small Business true    
Entity Emerging Growth Company false    
Entity Shell Company false    
Entity Public Float   $ 129.6  
Entity Common Stock, Shares Outstanding     41,754,413
Document Fiscal Year Focus 2019    
Document Fiscal Period Focus FY    
v3.19.3.a.u2
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Current assets:    
Cash and cash equivalents $ 155,889 $ 197,499
Restricted cash 6,045 4,947
Due from charterers, net of a reserve of $1,064 and $669, respectively 13,701 22,306
Prepaid expenses and other current assets 10,049 10,449
Inventories 27,208 29,548
Vessels held for sale 10,303 5,702
Total current assets 223,195 270,451
Noncurrent assets:    
Vessels, net of accumulated depreciation of $288,373 and $244,529, respectively 1,273,861 1,344,870
Deferred drydock, net of accumulated amortization of $11,862 and $13,553 respectively 17,304 9,544
Fixed assets, net of accumulated depreciation and amortization of $2,154 and $1,281, respectively 5,976 2,290
Operating lease right-of-use assets 8,241  
Restricted cash 315 315
Total noncurrent assets 1,305,697 1,357,019
Total assets 1,528,892 1,627,470
Current liabilities:    
Accounts payable and accrued expenses 49,604 29,143
Current portion of long-term debt 69,747 66,320
Deferred revenue 6,627 6,404
Current operating lease liabilities 1,677  
Total current liabilities: 127,655 101,867
Noncurrent liabilities:    
Long-term operating lease liabilities 9,826  
Deferred rent   3,468
Long-term debt, net of deferred financing costs of $13,094 and $16,272, respectively 412,983 468,828
Total noncurrent liabilities 422,809 472,296
Total liabilities 550,464 574,163
Commitments and contingencies (Note 14)
Equity:    
Common stock, par value $0.01; 500,000,000 shares authorized; 41,754,413 and 41,644,470 shares issued and outstanding at December 31, 2019 and December 31, 2018, respectively 417 416
Additional paid-in capital 1,721,268 1,740,163
Retained deficit (743,257) (687,272)
Total equity 978,428 1,053,307
Total liabilities and equity $ 1,528,892 $ 1,627,470
v3.19.3.a.u2
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Current Assets:    
Due from charterers, reserve $ 1,064 $ 669
Noncurrent assets:    
Vessels, accumulated depreciation 288,373 244,529
Deferred drydock, accumulated amortization 11,862 13,553
Fixed assets, accumulated depreciation and amortization 2,154 1,281
Deferred financing costs, noncurrent $ 13,094 $ 16,272
Genco Shipping & Trading Limited shareholders' equity:    
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 500,000,000 500,000,000
Common stock, shares issued (in shares) 41,754,413 41,644,470
Common stock, shares outstanding (in shares) 41,754,413 41,644,470
v3.19.3.a.u2
Consolidated Statements of Operations - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Revenues:      
Revenues $ 389,496 $ 367,522 $ 209,698
Operating expenses:      
Voyage expenses 173,043 114,855 25,321
Vessel operating expenses 96,209 97,427 98,086
Charter hire expenses 16,179 1,534 0
General and administrative expenses (inclusive of nonvested stock amortization expense of $2,057, $2,231 and $4,053, respectively) 24,516 23,141 22,190
Technical management fees 7,567 8,000 7,659
Depreciation and amortization 72,824 68,976 71,776
Impairment of vessel assets 27,393 56,586 21,993
Loss (gain) on sale of vessels 168 (3,513) (7,712)
Total operating expenses 417,899 367,006 239,313
Operating (loss) income (28,403) 516 (29,615)
Other (expense) income:      
Other income (expense) 501 367 (164)
Interest income 4,095 3,801 1,551
Interest expense (31,955) (33,091) (30,497)
Impairment of right-of-use asset (223)    
Loss on debt extinguishment   (4,533)  
Other expense (27,582) (33,456) (29,110)
Net loss $ (55,985) $ (32,940) $ (58,725)
Net loss per share-basic $ (1.34) $ (0.86) $ (1.71)
Net loss per share-diluted $ (1.34) $ (0.86) $ (1.71)
Weighted average common shares outstanding-basic 41,762,893 38,382,599 34,242,631
Weighted average common shares outstanding-diluted 41,762,893 38,382,599 34,242,631
Dividends declared per share of common stock $ 0.50    
Voyage      
Revenues:      
Revenues $ 389,496 $ 367,522 $ 209,698
v3.19.3.a.u2
Consolidated Statements of Operations (Parenthetical) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Consolidated Statements of Operations      
Nonvested stock amortization expenses $ 2,057 $ 2,231 $ 4,053
v3.19.3.a.u2
Consolidated Statements of Comprehensive Loss - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Consolidated Statements of Comprehensive Loss      
Net loss $ (55,985) $ (32,940) $ (58,725)
Other comprehensive income 0 0 0
Comprehensive loss $ (55,985) $ (32,940) $ (58,725)
v3.19.3.a.u2
Consolidated Statements of Equity - USD ($)
$ in Thousands
Series A Preferred Stock
Preferred Stock
Common Stock
Additional Paid-in Capital
Retained Earnings
Total
Balance at the beginning at Dec. 31, 2016 $ 120,789 $ 74 $ 1,503,784 $ (594,948) $ 1,029,699
Increase (Decrease) in Shareholders' Equity          
Net loss       (58,725) (58,725)
Conversion of 27,061,856 shares of Series A Preferred Stock $ (120,789) 270 120,519    
Issuance of shares of vested RSUs   1 (1)    
Nonvested stock amortization     4,053   4,053
Balance at the end at Dec. 31, 2017   345 1,628,355 (653,673) 975,027
Increase (Decrease) in Shareholders' Equity          
Impact of adoption of ASC 606       (659) (659)
As adjusted balance — January 1, 2018   345 1,628,355 (654,332) 974,368
Net loss       (32,940) (32,940)
Issuance of 7,015,000 shares of common stock   70 109,578   109,648
Issuance of shares of vested RSUs   1 (1)    
Nonvested stock amortization     2,231   2,231
Balance at the end at Dec. 31, 2018   416 1,740,163 (687,272) 1,053,307
Increase (Decrease) in Shareholders' Equity          
Net loss       (55,985) (55,985)
Issuance of shares of vested RSUs   1 (1)    
Cash dividends declared ($0.50 per share)     (20,951)   (20,951)
Nonvested stock amortization     2,057   2,057
Balance at the end at Dec. 31, 2019   $ 417 $ 1,721,268 $ (743,257) $ 978,428
v3.19.3.a.u2
Consolidated Statements of Equity (Parenthetical) - $ / shares
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Issuance of shares of RSUs (in shares) 109,943 97,466 115,700
Dividends declared per share $ 0.50    
Common Stock      
Issuance of stock (in shares)   7,015,000  
Series A Preferred Stock | Preferred Stock      
Conversion of shares (in shares)     27,061,856
v3.19.3.a.u2
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Cash flows from operating activities:      
Net loss $ (55,985) $ (32,940) $ (58,725)
Adjustments to reconcile net loss to net cash provided by operating activities:      
Depreciation and amortization 72,824 68,976 71,776
Amortization of deferred financing costs 3,788 3,035 2,325
PIK interest, net     4,542
Payment of PIK interest 0 (5,341) 0
Noncash operating lease expense 1,246    
Amortization of nonvested stock compensation expense 2,057 2,231 4,053
Impairment of right-of-use asset 223    
Impairment of vessel assets 27,393 56,586 21,993
Loss (gain) on sale of vessels 168 (3,513) (7,712)
Loss on debt extinguishment   4,533  
Insurance proceeds for protection and indemnity claims 494 303 765
Insurance proceeds for loss of hire claims   58 2,230
Change in assets and liabilities:      
Decrease (increase) in due from charterers 8,605 (10,099) (2,482)
Increase in prepaid expenses and other current assets (789) (6,626) (5,875)
Decrease (increase) in inventories 2,340 (14,215) (6,485)
Decrease in other noncurrent assets   514  
Increase in accounts payable and accrued expenses 13,172 2,571 1,494
Increase in deferred revenue 223 1,190 3,234
Decrease in operating lease liabilities (1,592)    
Increase in deferred rent   880 720
Deferred drydock costs incurred (14,641) (2,236) (7,782)
Net cash provided by operating activities 59,526 65,907 24,071
Cash flows from investing activities:      
Purchase of vessels and ballast water treatment systems, including deposits (13,960) (241,872) (262)
Purchase of scrubbers (capitalized in Vessels) (31,750)    
Purchase of other fixed assets (4,714) (1,462) (290)
Net proceeds from sale of vessels 26,963 44,330 15,513
Insurance proceeds for hull and machinery claims 612 3,629 2,444
Net cash (used in) provided by investing activities (22,849) (195,375) 17,405
Cash flows from financing activities:      
Payment of debt extinguishment costs   (2,962)  
Proceeds from issuance of common stock   110,249  
Payment of common stock issuance costs (105) (496)  
Payment of Series A Preferred Stock issuance costs     (1,103)
Cash dividends paid (20,877)    
Payment of deferred financing costs (611) (11,845)  
Net cash (used in) provided by financing activities (77,189) 127,283 (5,598)
Net (decrease) increase in cash, cash equivalents and restricted cash (40,512) (2,185) 35,878
Cash, cash equivalents and restricted cash at beginning of period 202,761 204,946 169,068
Cash, cash equivalents and restricted cash at end of period 162,249 202,761 204,946
Secured Debt | $108 Million Credit Facility      
Cash flows from financing activities:      
Proceeds from credit facility   108,000  
Repayment of secured debt (6,320) (1,580) 0
Secured Debt | $495 Million Credit Facility      
Cash flows from financing activities:      
Proceeds from credit facility 21,500 460,000  
Repayment of secured debt (70,776) (15,000) 0
Secured Debt | $400 Million Credit Facility      
Adjustments to reconcile net loss to net cash provided by operating activities:      
Payment of PIK interest   (5,341)  
Cash flows from financing activities:      
Repayment of secured debt   (399,600) (400)
Secured Debt | 2014 Term Loan Facilities      
Cash flows from financing activities:      
Repayment of secured debt 0 (25,544) (2,763)
Line of Credit Facility | $98 Million Credit Facility      
Cash flows from financing activities:      
Repayments of Credit Facility $ 0 $ (93,939) $ (1,332)
v3.19.3.a.u2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2019
Feb. 28, 2019
Dec. 31, 2018
Aug. 14, 2018
Dec. 31, 2017
Nov. 15, 2016
Nov. 10, 2016
Nov. 04, 2015
Secured Debt | $108 Million Credit Facility                
Maximum borrowing capacity $ 108,000   $ 108,000 $ 108,000        
Secured Debt | $495 Million Credit Facility                
Maximum borrowing capacity $ 495,000 $ 495,000 495,000          
Secured Debt | $400 Million Credit Facility                
Maximum borrowing capacity     400,000   $ 400,000   $ 400,000  
Line of Credit Facility | $98 Million Credit Facility                
Maximum borrowing capacity     $ 98,000   $ 98,000 $ 98,000   $ 98,000
v3.19.3.a.u2
GENERAL INFORMATION
12 Months Ended
Dec. 31, 2019
GENERAL INFORMATION  
GENERAL INFORMATION

1 - GENERAL INFORMATION

 

The accompanying consolidated financial statements include the accounts of Genco Shipping & Trading Limited (“GS&T”) and its direct and indirect wholly-owned subsidiaries (collectively, the “Company”). The Company is engaged in the ocean transportation of drybulk cargoes worldwide through the ownership and operation of drybulk carrier vessels. GS&T is incorporated under the laws of the Marshall Islands and as of December 31, 2019, is the direct or indirect owner of all of the outstanding shares or limited liability company interests of the following subsidiaries: Genco Ship Management LLC; Genco Investments LLC; Genco RE Investments LLC; Genco Shipping Pte. Ltd.; Genco Shipping A/S; Baltic Trading Limited (“Baltic Trading”); and the ship-owning subsidiaries as set forth below under “Other General Information.” 

 

On June 19, 2018, the Company closed an equity offering of 7,015,000 shares of common stock at an offering price of $16.50 per share.  The Company received net proceeds of $109,648 after deducting underwriters’ discounts and commissions and other expenses.

 

 On November 15, 2016, pursuant to stock purchase agreements (the “Purchase Agreements”) effective as of October 4, 2016 with Centerbridge Partners, L/P, or its affiliates, Strategic Value Partners, LLC and funds managed by affiliates of Apollo Global Management, LLC, the Company completed the private placement of 27,061,856 shares of Series A Convertible Preferred Stock (“Series A Preferred Stock”) which included 25,773,196 shares at a price per share of $4.85 and an additional 1,288,660 shares issued as a commitment fee on a pro rata basis.  The Company received net proceeds of $120,789 after deducting placement agents’ fees and expenses.  On January 4, 2017, the Company’s shareholders approved at a Special Meeting of Shareholders the issuance of up to 27,061,856 shares of common stock of the Company upon the conversion of shares of the Series A Preferred Stock, par value $0.01 per share, which were purchased by certain investors in a private placement (the “Conversion Proposal”).  As a result of shareholder approval of the Conversion Proposal, all outstanding 27,061,856 shares of Series A Preferred Stock were automatically and mandatorily converted into 27,061,856 shares of common stock of the Company on January 4, 2017.

Other General Information

 

At December 31, 2019, 2018 and 2017, the Company’s fleet consisted of 55,  59 and 60 vessels, respectively.

 

Below is the list of Company’s wholly owned ship-owning subsidiaries as of December 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

Wholly Owned Subsidiaries

    

Vessel Acquired

    

Dwt

    

Delivery Date

    

Year Built

 

 

 

 

 

 

 

 

 

 

 

Genco Augustus Limited

 

Genco Augustus

 

180,151

 

8/17/07

 

2007

 

Genco Tiberius Limited

 

Genco Tiberius

 

175,874

 

8/28/07

 

2007

 

Genco London Limited

 

Genco London

 

177,833

 

9/28/07

 

2007

 

Genco Titus Limited

 

Genco Titus

 

177,729

 

11/15/07

 

2007

 

Genco Charger Limited

 

Genco Charger

 

28,398

 

12/14/07

(3)

2005

 

Genco Warrior Limited

 

Genco Warrior

 

55,435

 

12/17/07

 

2005

 

Genco Predator Limited

 

Genco Predator

 

55,407

 

12/20/07

 

2005

 

Genco Hunter Limited

 

Genco Hunter

 

58,729

 

12/20/07

 

2007

 

Genco Constantine Limited

 

Genco Constantine

 

180,183

 

2/21/08

 

2008

 

Genco Thunder LLC

 

Genco Thunder

 

76,588

 

9/25/08

 

2007

 

Genco Hadrian Limited

 

Genco Hadrian

 

169,025

 

12/29/08

 

2008

 

Genco Commodus Limited

 

Genco Commodus

 

169,098

 

7/22/09

 

2009

 

Genco Maximus Limited

 

Genco Maximus

 

169,025

 

9/18/09

 

2009

 

Genco Claudius Limited

 

Genco Claudius

 

169,001

 

12/30/09

 

2010

 

Genco Bay Limited

 

Genco Bay

 

34,296

 

8/24/10

 

2010

 

Genco Ocean Limited

 

Genco Ocean

 

34,409

 

7/26/10

 

2010

 

Genco Avra Limited

 

Genco Avra

 

34,391

 

5/12/11

 

2011

 

Genco Mare Limited

 

Genco Mare

 

34,428

 

7/20/11

 

2011

 

Genco Spirit Limited

 

Genco Spirit

 

34,432

 

11/10/11

 

2011

 

Genco Aquitaine Limited

 

Genco Aquitaine

 

57,981

 

8/18/10

 

2009

 

Genco Ardennes Limited

 

Genco Ardennes

 

58,018

 

8/31/10

 

2009

 

Genco Auvergne Limited

 

Genco Auvergne

 

58,020

 

8/16/10

 

2009

 

Genco Bourgogne Limited

 

Genco Bourgogne

 

58,018

 

8/24/10

 

2010

 

Genco Brittany Limited

 

Genco Brittany

 

58,018

 

9/23/10

 

2010

 

Genco Languedoc Limited

 

Genco Languedoc

 

58,018

 

9/29/10

 

2010

 

Genco Loire Limited

 

Genco Loire

 

53,430

 

8/4/10

 

2009

 

Genco Lorraine Limited

 

Genco Lorraine

 

53,417

 

7/29/10

 

2009

 

Genco Normandy Limited

 

Genco Normandy

 

53,596

 

8/10/10

 

2007

 

Genco Picardy Limited

 

Genco Picardy

 

55,257

 

8/16/10

 

2005

 

Genco Provence Limited

 

Genco Provence

 

55,317

 

8/23/10

 

2004

 

Genco Pyrenees Limited

 

Genco Pyrenees

 

58,018

 

8/10/10

 

2010

 

Genco Rhone Limited

 

Genco Rhone

 

58,018

 

3/29/11

 

2011

 

Genco Weatherly Limited

 

Genco Weatherly

 

61,556

 

7/26/18

 

2014

 

Genco Columbia Limited

 

Genco Columbia

 

60,294

 

9/10/18

 

2016

 

Genco Endeavour Limited

 

Genco Endeavour

 

181,060

 

8/15/18

 

2015

 

Genco Resolute Limited

 

Genco Resolute

 

181,060

 

8/14/18

 

2015

 

Genco Defender Limited

 

Genco Defender

 

180,021

 

9/6/18

 

2016

 

Genco Liberty Limited

 

Genco Liberty

 

180,032

 

9/11/18

 

2016

 

Baltic Lion Limited

 

Baltic Lion

 

179,185

 

4/8/15

(1)

2012

 

Baltic Tiger Limited

 

Genco Tiger

 

179,185

 

4/8/15

(1)

2011

 

Baltic Leopard Limited

 

Baltic Leopard

 

53,446

 

4/8/10

(2)

2009

 

Baltic Panther Limited

 

Baltic Panther

 

53,350

 

4/29/10

(2)

2009

 

Baltic Cougar Limited

 

Baltic Cougar

 

53,432

 

5/28/10

(2)

2009

 

Baltic Jaguar Limited

 

Baltic Jaguar

 

53,473

 

5/14/10

(2)

2009

 

Baltic Bear Limited

 

Baltic Bear

 

177,717

 

5/14/10

(2)

2010

 

Baltic Wolf Limited

 

Baltic Wolf

 

177,752

 

10/14/10

(2)

2010

 

Baltic Wind Limited

 

Baltic Wind

 

34,408

 

8/4/10

(2)

2009

 

Baltic Cove Limited

 

Baltic Cove

 

34,403

 

8/23/10

(2)

2010

 

Baltic Breeze Limited

 

Baltic Breeze

 

34,386

 

10/12/10

(2)

2010

 

Baltic Fox Limited

 

Baltic Fox

 

31,883

 

9/6/13

(2)

2010

 

Baltic Hare Limited

 

Baltic Hare

 

31,887

 

9/5/13

(2)

2009

 

Baltic Hornet Limited

 

Baltic Hornet

 

63,574

 

10/29/14

(2)

2014

 

Baltic Wasp Limited

 

Baltic Wasp

 

63,389

 

1/2/15

(2)

2015

 

Baltic Scorpion Limited

 

Baltic Scorpion

 

63,462

 

8/6/15

 

2015

 

Baltic Mantis Limited

 

Baltic Mantis

 

63,470

 

10/9/15

 

2015

 


(1)

The delivery date for these vessels represents the date that the vessel was purchased from Baltic Trading.

(2)

The delivery date for these vessels represents the date that the vessel was delivered to Baltic Trading.

(3)

The Genco Charger was sold on February 24, 2020.  Refer to Note 19 — Subsequent Events

v3.19.3.a.u2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
12 Months Ended
Dec. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Principles of consolidation

 

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) which includes the accounts of GS&T and its direct and indirect wholly-owned subsidiaries.  All intercompany accounts and transactions have been eliminated in consolidation.

 

Business geographics

 

The Company’s vessels regularly move between countries in international waters, over hundreds of trade routes and, as a result, the disclosure of geographic information is impracticable.

 

Vessel acquisitions

 

When the Company enters into an acquisition transaction, it determines whether the acquisition transaction was the purchase of an asset or a business based on the facts and circumstances of the transaction.  As is customary in the shipping industry, the purchase of a vessel is normally treated as a purchase of an asset as the historical operating data for the vessel is not reviewed nor is it material to the Company’s decision to make such acquisition.

 

When a vessel is acquired with an existing time charter, the Company allocates the purchase price to the vessel and the time charter based on, among other things, vessel market valuations and the present value (using an interest rate which reflects the risks associated with the acquired charters) of the difference between (i) the contractual amounts to be paid pursuant to the charter terms and (ii) management’s estimate of the fair market charter rate, measured over a period equal to the remaining term of the charter.  The capitalized above-market (assets) and below-market (liabilities) charters are amortized as a reduction or increase, respectively, to voyage revenues over the remaining term of the charter.

 

Segment reporting

 

The Company reports financial information and evaluates its operations by voyage revenues and not by the length of ship employment for its customers, i.e., spot or time charters.  Each of the Company’s vessels serve the same type of customer, have similar operation and maintenance requirements, operate in the same regulatory environment, and are subject to similar economic characteristics. Based on this, the Company has determined that it operates in one reportable segment, the ocean transportation of drybulk cargoes worldwide through the ownership and operation of drybulk carrier vessels.    

 

Revenue recognition

 

Since the Company’s inception, revenues have been generated from time charter agreements, spot market voyage charters, pool agreements and spot market-related time charters.  Voyage revenues also include the sale of bunkers consumed during short-term time charters pursuant to the terms of the time charter agreement.

 

Time charters

 

A time charter involves placing a vessel at the charterer’s disposal for a set period of time during which the charterer may use the vessel in return for the payment by the charterer of a specified daily hire rate, including any ballast bonus payments received pursuant to the time charter agreement.  Spot market-related time charters are the same as other time charter agreements, except the time charter rates are variable and are based on a percentage of the average daily rates as published by the Baltic Dry Index (“BDI”). 

 

The Company records time charter revenues, including spot market-related time charters, over the term of the charter as service is provided.  Revenues are recognized on a straight-line basis as the average revenue over the term of the respective time charter agreement for which the performance obligations are satisfied beginning when the vessel is delivered to the charterer until it is redelivered back to the Company.  The Company records spot market-related time charter revenues over the term of the charter as service is provided based on the rate determined based on the BDI for each respective billing period.  As such, the revenue earned by the Company’s vessels that are on spot market-related time charters is subject to fluctuations of the spot market.  Time charter contracts, including spot market-related time charters, are considered operating leases and therefore do not fall under the scope of ASC 606 (as defined under “Recent accounting pronouncements” below) because (i) the vessel is an identifiable asset; (ii) the Company does not have substantive substitution rights; and (iii) the charterer has the right to control the use of the vessel during the term of the contract and derives economic benefit from such use. 

 

The Company has identified that time charter agreements, including fixed rate time charters and spot market-related time charters, contain a lease in accordance with ASC 842 (as defined under “Recent accounting pronouncements” below).  Refer to Note 12 — Voyage Revenue for further discussion.

 

During the year ended December 31, 2017, six of the Company’s vessels were chartered under spot-market related time charters that included a profit-sharing element, the Genco Commodus, Baltic Lion, Genco London, Genco Maximus, Baltic Wasp and Baltic Wolf.  These time charters all ended during the year ended December 31, 2017.  Under these charter agreements, the rate for the spot market-related time charter was linked to a floor of $3 with a 50% index-based profit sharing component. During the years ended December 31, 2019 and 2018, there were no time charters with profit-sharing elements.

 

Spot market voyage charters

 

In a spot market voyage charter contract, the charterer hires the vessel to transport a specific agreed-upon cargo for a single voyage, which may contain multiple load ports and discharge ports. The consideration in such a contract is determined on the basis of a freight rate per metric ton of cargo carried or occasionally on a lump sum basis. The charter party generally has a minimum amount of cargo. The charterer is liable for any short loading of cargo or "dead" freight. The contract generally has a "demurrage" or "despatch" clause. As per this clause, the charterer reimburses the Company for any potential delays exceeding the allowed laytime as per the charter party clause at the ports visited which is recorded as demurrage revenue. Conversely, the charterer is given credit if the loading/discharging activities happen within the allowed laytime known as despatch resulting in a reduction in revenue. The voyage contracts generally have variable consideration in the form of demurrage or despatch. The amount of revenue earned as demurrage or despatch paid by the Company for the years ended December 31, 2019, 2018 and 2017 is not material.

 

Pursuant to the new revenue recognition guidance as disclosed in Note 12 — Voyage Revenue, which was adopted during the first quarter of 2018, revenue for spot market voyage charters is now recognized ratably over the total transit time of each voyage, which commences at the time the vessel arrives at the loading port and ends at the time the discharge of cargo is completed at the discharge port.  Prior to the adoption of the new guidance, revenue for spot market voyage charters was recognized ratably over the total transit time of the voyage, which previously commenced the latter of when the vessel departed from its last discharge port and when an agreement was entered into with the charterered, and ended at the time discharge of cargo was completed at the discharge port.

 

Vessel Pools

 

At December 31, 2019 and 2018, the Company did not have any of its vessels in vessel pools. Under pool arrangements, the vessels operate under a time charter agreement whereby the cost of bunkers and port expenses are borne by the pool and operating costs including crews, maintenance and insurance are typically paid by the owner of the vessel.  Since the members of the pool share in the revenue less voyage expenses generated by the entire group of vessels in the pool, and the pool operates in the spot market, the revenue earned by these vessels is subject to the fluctuations of the spot market.  The Company recognizes revenue from these pool arrangements based on its portion of the net distributions reported by the relevant pool, which represents the net voyage revenue of the pool after voyage expenses and pool manager fees.

 

Voyage expense recognition

 

In time charters, spot market-related time charters and pool agreements, operating costs including crews, maintenance and insurance are typically paid by the owner of the vessel and specified voyage costs such as fuel and port charges are paid by the charterer. These expenses are borne by the Company during spot market voyage charters.  As such, there are significantly higher voyage expenses for spot market voyage charters as compared to time charters, spot market-related time charters and pool agreements. There are certain other non-specified voyage expenses, such as commissions, which are typically borne by the Company. At the inception of a time charter, the Company records the difference between the cost of bunker fuel delivered by the terminating charterer and the bunker fuel sold to the new charterer as a gain or loss within voyage expenses. Additionally, the Company records lower of cost and net realizable value adjustments to re-value the bunker fuel on a quarterly basis for certain time charter agreements where the inventory is subject to gains and losses.  These differences in bunkers, including any lower of cost and net realizable value adjustments, resulted in a net (loss) gain of ($829),  $3,000 and $2,021 during the years ended December 31, 2019, 2018 and 2017, respectively. Additionally, voyage expenses include the cost of bunkers consumed during short-term time charters pursuant to the terms of the time charter agreement.    

 

Loss on debt extinguishment

 

During the year ended December 31, 2018, the Company recorded $4,533 related to the loss on the extinguishment of debt in accordance with Accounting Standards Codification (“ASC”) 470-50 — “Debt – Modifications and Extinguishments” (“ASC 470-50”). This loss was recognized as a result of the refinancing of the $400 Million Credit Facility, the $98 Million Credit Facility and the 2014 Term Loan Facilities with the $495 Million Credit Facility on June 5, 2018 as described in Note 7 — Debt.

 

Due from charterers, net

 

Due from charterers, net includes accounts receivable from charters, including receivables for spot market voyages, net of the provision for doubtful accounts.  At each balance sheet date, the Company records the provision based on a review of all outstanding charter receivables.  Included in the standard time charter contracts with the Company’s customers are certain performance parameters which, if not met, can result in customer claims.  As of December 31, 2019 and 2018, the Company had a reserve of $1,064 and $669, respectively, against the due from charterers balance and an additional accrual of $577 and $345, respectively, in deferred revenue, each of which is primarily associated with estimated customer claims against the Company including vessel performance issues under time charter agreements.

 

Revenue is based on contracted charterparties.  However, there is always the possibility of dispute over terms and payment of hires and freights.  In particular, disagreements may arise concerning the responsibility of lost time and revenue.  Accordingly, the Company periodically assesses the recoverability of amounts outstanding and estimates a provision if there is a possibility of non-recoverability.  The Company believes its provisions to be reasonable based on information available.

 

Inventories

 

Inventories consist of consumable bunkers and lubricants.  For bunkers that are subject to gains and losses as a result of certain time charter agreements, these inventories are stated at the lower of cost and net realizable value, and all others are stated at cost. Cost is determined by the first in, first out method.    

 

Vessel operating expenses

 

Vessel operating expenses include crew wages and related costs, the cost of insurance, expenses relating to repairs and maintenance, the cost of spares and consumable stores, and other miscellaneous expenses.  Vessel operating expenses are recognized when incurred.

 

Charter hire expenses

 

During the second quarter of 2018, the Company began chartering-in third party vessels.  The costs to charter-in these vessels, which primarily include the daily charter hire rate net of commissions or net freight revenue, are recorded as Charter hire expenses.  The Company recorded $16,179,  $1,534 and $0 of charter hire expenses during the years ended December 31, 2019, 2018 and 2017, respectively.

 

Vessels, net

 

Vessels, net is stated at cost less accumulated depreciation. Included in vessel costs are acquisition costs directly attributable to the acquisition of a vessel and expenditures made to prepare the vessel for its initial voyage. The Company also capitalizes interest costs for a vessel under construction as a cost that is directly attributable to the acquisition of a vessel. Vessels are depreciated on a straight-line basis over their estimated useful lives, determined to be 25 years from the date of initial delivery from the shipyard. Depreciation expense for vessels for the years ended December 31, 2019, 2018 and 2017 was $66,351,  $64,012 and $66,514, respectively. 

 

Depreciation expense is calculated based on cost less the estimated residual scrap value. The costs of significant replacements, renewals and betterments are capitalized and depreciated over the shorter of the vessel’s remaining estimated useful life or the estimated life of the renewal or betterment. Undepreciated cost of any asset component being replaced that was acquired after the initial vessel purchase is written off as a component of vessel operating expense. Expenditures for routine maintenance and repairs are expensed as incurred. Scrap value is estimated by the Company by taking the estimated scrap value of $310 per lightweight ton (“lwt”) times the weight of the vessel noted in lwt.

 

Vessels held for sale

On September 25, 2019, the Company entered into an agreement to sell the Genco Thunder, and the relevant vessel assets have been classified as held for sale in the Consolidated Balance Sheet as of December 31, 2019.  The vessel is expected to be sold during the first quarter of 2020.

 

On November 23, 2018, the Company reached an agreement to sell the Genco Vigour, and the relevant vessel assets have been classified as held for sale in the Consolidated Balance Sheet as of December 31, 2018. This vessel was sold on January 28, 2019.  Refer to Note 4 — Vessel Acquisitions and Dispositions for additional information.

           

Fixed assets, net

 

Fixed assets, net is stated at cost less accumulated depreciation and amortization.  Depreciation and amortization are based on a straight line basis over the estimated useful life of the specific asset placed in service.  The following table is used in determining the typical estimated useful lives:

 

 

 

 

 

 

 

Description

    

Useful lives

 

 

 

 

 

 

Leasehold improvements

 

Lesser of the estimated useful life of the asset or life of the lease

Furniture, fixtures & other equipment

 

5 years

Vessel equipment

 

2-15 years

Computer equipment

 

3 years

 

Depreciation and amortization expense for fixed assets for the years ended December 31, 2019, 2018 and 2017 was $989, $335 and $274, respectively. 

 

Deferred drydocking costs

 

The Company’s vessels are required to be drydocked approximately every 30 to 60 months for major repairs and maintenance that cannot be performed while the vessels are operating.  The Company defers the costs associated with the drydockings as they occur and amortizes these costs on a straight-line basis over the period between drydockings.  Costs deferred as part of a vessel’s drydocking include actual costs incurred at the drydocking yard; cost of travel, lodging and subsistence of personnel sent to the drydocking site to supervise; and the cost of hiring a third party to oversee the drydocking.  If the vessel is drydocked earlier than originally anticipated, any remaining deferred drydock costs that have not been amortized are expensed at the end of the next drydock.

 

Amortization expense for drydocking for the years ended December 31, 2019, 2018 and 2017 was $5,484,  $4,629 and $4,988, respectively, and is included in Depreciation and amortization expense in the Consolidated Statements of Operations.  All other costs incurred during drydocking are expensed as incurred.

 

Impairment of long-lived assets

 

During the years ended December 31, 2019, 2018 and 2017 the Company recorded $27,393,  $56,586 and $21,993, respectively, related to the impairment of vessel assets in accordance with ASC 360 — “Property, Plant and Equipment” (“ASC 360”).  ASC 360 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts.  If indicators of impairment are present, the Company performs an analysis of the anticipated undiscounted future net cash flows to be derived from the related long-lived assets. 

 

On February 3, 2020, the Company entered into an agreement to sell the Genco Charger, a 2005-built Handysize vessel, to a third party for $5,150 less a 1.0% commission payable to a third party.   As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessel as of December 31, 2019, the vessel value for the Genco Charger was adjusted to its net sales price of $5,099 as of December 31, 2019. This resulted in an impairment loss of $1,314 during the year ended December 31, 2019.  Refer to Note 19 — Subsequent Events for further detail regarding the sale.

 

On November 4, 2019, the Company entered into an agreement to sell the Genco Raptor, a 2007-built Panamax vessel, to a third party for $10,200 less a 2.0% commission payable to a third party.  As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessel as of September 30, 2019, the vessel value for the Genco Raptor was adjusted to its net sales price of $9,996 as of September 30, 2019. This resulted in an impairment loss of $5,812 during the year ended December 31, 2019.  Refer to Note 4 — Vessel Acquisitions and Dispositions for further detail regarding the sale.

 

On September 25, 2019, the Company entered into an agreement to sell the Genco Thunder, a 2007-built Panamax vessel, for $10,400 less a 2.0% broker commission payable to a third party.  Therefore, the vessel value for the Genco Thunder was adjusted to its net sales price of $10,192 as of September 30, 2019.  This resulted in an impairment loss of $5,749 during the year ended December 31, 2019.  Refer to Note 4 — Vessel Acquisitions and Dispositions for further detail regarding the sale.

 

 On September 20, 2019, the Company entered into an agreement to sell the Genco Champion, a 2006-built Handysize vessel, for $6,600 less a 3.0% broker commission payable to a third party.  Therefore, the vessel value for the Genco Champion was adjusted to its net sales price of $6,402 as of September 30, 2019.  This resulted in an impairment loss of $621 during the year ended December 31, 2019.  Refer to Note 4 — Vessel Acquisitions and Dispositions for further detail regarding the sale. 

 

On August 2, 2019, the Company entered into an agreement to sell the Genco Challenger, a 2003-built Handysize vessel, for $5,250 less a 2.0% broker commission payable to a third party.  As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessel as of June 30, 2019, the vessel value for the Genco Challenger was adjusted to its net sales price of $5,145 as of June 30, 2019.  This resulted in an impairment loss of $4,401 during the year ended December 31, 2019.  Refer to Note 4 — Vessel Acquisitions and Dispositions for further detail regarding the sale.

 

At June 30, 2019, the Company determined that the expected estimated future undiscounted cash flows for the Genco Champion, a 2006-built Handysize vessel, and the Genco Charger, a 2005-built Handysize vessel, did not exceed the net book value of these vessels as of June 30, 2019.  As such, the Company adjusted the value of these vessels to their respective fair market values as of June 30, 2019.  This resulted in an impairment loss of $9,496 during the year ended December 31, 2019. 

 

On July 24, 2018, the Company entered into an agreement to sell the Genco Surprise, a 1998-built Panamax vessel, for $5,300 less a 3.0% broker commission payable to a third party.  As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessel as of June 30, 2018, the vessel value for the Genco Surprise was adjusted to its net sales price of $5,141 as of June 30, 2018.  This resulted in an impairment loss of $184 during the year ended December 31, 2018.  Refer to Note 4 — Vessel Acquisitions and Dispositions for further detail regarding the sale. 

 

On February 27, 2018, the Board of Directors determined to dispose of the Company’s following nine vessels: the Genco Cavalier, the Genco Loire, the Genco Lorraine, the Genco Muse, the Genco Normandy, the Baltic Cougar, the Baltic Jaguar, the Baltic Leopard and the Baltic Panther, at times and on terms to be determined in the future.  Given this decision, and that the estimated future undiscounted cash flows for each of these older vessels did not exceed the net book value for each vessel, we adjusted the values of these older vessels to their respective fair market values during the year ended December 31, 2018.  This resulted in an impairment loss of $56,402 during the year ended December 31, 2018.

 

On August 4, 2017, the Board of Directors determined to dispose of the Company’s vessels built in 1999, namely the Genco Beauty, the Genco Explorer, the Genco Knight, the Genco Progress and the Genco Vigour, at times and on terms to be determined in the future.  Given this decision, and that the estimated future undiscounted cash flows for each of these older vessels did not exceed the net book value for each vessel, the Company has adjusted the values of these older vessels to their respective fair market values during the year ended December 31, 2017.  This resulted in an impairment loss of $18,654 during the year ended December 31, 2017. Refer to Note 4 — Vessel Acquisitions and Dispositions for further detail regarding the sale of these vessels.

 

At June 30, 2017, the Company determined that the sum of the estimated undiscounted future cash flows attributable to the Genco Surprise did not exceed the carrying value of the vessel at June 30, 2017 and reduced the carrying value of the Genco Surprise, a 1998-built Panamax vessel, to its fair market value as of June 30, 2017.  This resulted in an impairment loss of $3,339 during the year ended December 31, 2017.   

 

Loss (gain) on sale of vessels

 

During the years ended December 31, 2019, 2018 and 2017, the Company recorded net (losses) gains of ($168),  $3,513 and $7,712, respectively, related to the sale of vessels.  The ($168) net loss recognized during the year ended December 31, 2019 related primarily to the sale of the Genco Challenger, Genco Champion and Genco Raptor which was largely offset by a net gain related to the sale of the Genco Vigour. The $3,513 net gain recognized during the year ended December 31, 2018 related primarily to the sale of the Genco Progress, the Genco Cavalier, the Genco Explorer, the Genco Muse, the Genco Beauty and the Genco Knight.  The $7,712 net gain recognized during the year ended December 31, 2017 related primarily to the sale of the Genco Wisdom, the Genco Reliance, the Genco Carrier, the Genco Success and the Genco Prosperity.  Refer to Note 4 — Vessel Acquisitions and Dispositions for further detail regarding the sale of these vessels.

 

Deferred financing costs

 

Deferred financing costs, which are presented as a direct deduction within the outstanding debt balance in the Company’s Consolidated Balance Sheets, consist of fees, commissions and legal expenses associated with securing loan facilities and other debt offerings and amending existing loan facilities.  These costs are amortized over the life of the related debt and are included in Interest expense in the Consolidated Statement of Operations.

 

Cash and cash equivalents

 

The Company considers highly liquid investments, such as money market funds and certificates of deposit with an original maturity of three months or less to be cash equivalents.

 

Restricted Cash

 

Current and non-current restricted cash includes cash that is restricted pursuant to our credit facilities, refer to Note 7 — Debt.  The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same amounts shown in the Consolidated Statements of Cash Flows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 

 

December 31, 

 

December 31, 

 

December 31, 

 

 

    

2019

    

2018

 

2017

 

2016

 

Cash and cash equivalents

 

$

155,889

 

$

197,499

 

$

174,479

 

$

133,400

 

Restricted cash - current

 

 

6,045

 

 

4,947

 

 

7,234

 

 

8,242

 

Restricted cash - noncurrent

 

 

315

 

 

315

 

 

23,233

 

 

27,426

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash, cash equivalents and restricted cash

 

$

162,249

 

$

202,761

 

$

204,946

 

$

169,068

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States Gross Transportation Tax 

 

Pursuant to Section 883 of the U.S. Internal Revenue Code of 1986 (as amended) (the “Code”), qualified income derived from the international operations of ships is excluded from gross income and exempt from U.S. federal income tax if a company engaged in the international operation of ships meets certain requirements (the “Section 883 exemption”).  Among other things, in order to qualify, the Company must be incorporated in a country that grants an equivalent exemption to U.S. corporations and must satisfy certain qualified ownership requirements.

 

The Company is incorporated in the Marshall Islands.  Pursuant to the income tax laws of the Marshall Islands, the Company is not subject to Marshall Islands income tax.  The Marshall Islands has been officially recognized by the Internal Revenue Service as a qualified foreign country that currently grants the requisite equivalent exemption from tax.  The Company is not taxable in any other jurisdiction, with the exception of Genco Management (USA) Limited, Genco Shipping Pte. Ltd. and Genco Shipping A/S, as noted in the “Income taxes” section below.

 

The Company will qualify for the Section 883 exemption if, among other things, (i) the Company’s stock is treated as primarily and regularly traded on an established securities market in the United States (the “publicly traded test”) or (ii) the Company satisfies the qualified shareholder test or (iii) the Company satisfies the controlled foreign corporation test (the “CFC test”).  Under applicable Treasury Regulations, the publicly traded test cannot be satisfied in any taxable year in which persons who actually or constructively own 5% or more of the Company’s stock (which the Company sometimes refers to as “5% shareholders”), together own 50% or more of the Company’s stock (by vote and value) for more than half the days in such year (which the Company sometimes refers to as the “five percent override rule”), unless an exception applies.  A foreign corporation satisfies the qualified shareholder test if more than 50 percent of the value of its outstanding shares is owned (or treated as owned by applying certain attribution rules) for at least half of the number of days in the foreign corporation's taxable year by one or more “qualified shareholders.”  A qualified shareholder includes a foreign corporation that, among other things, satisfies the publicly traded test.  A foreign corporation satisfies the CFC test if it is a “controlled foreign corporation” and one or more qualified U.S. persons own more than 50 percent of the total value of all the outstanding stock.

 

Based on the publicly traded requirement of the Section 883 regulations, the Company believes that it qualified for exemption from income tax on income derived from the international operations of vessels during the years ended December 31, 2019 and 2018.  However, based on the ownership and trading of the Company’s stock in 2017, the Company believes that it did not satisfy the publicly traded test, the qualified shareholder test or the CFC test, and therefore did not qualify for the Section 883 exemption in 2017.  In order to meet the publicly traded requirement, the Company’s stock must be treated as being primarily and regularly traded for more than half the days of any such year.  Under the Section 883 regulations, the Company’s qualification for the publicly traded requirement may be jeopardized if 5% shareholders own, in the aggregate, 50% or more of the Company’s common stock for more than half the days of the year.  Management believes that during the year ended December 31, 2017, the combined ownership of its 5% shareholders equaled 50% or more of its common stock for more than half the days of that year. Management believes that during the years ended December 31, 2019 and 2018, the combined ownership of its 5% shareholders did not equal 50% or more of its common stock for more than half the days of each of those years. 

 

If the Company does not qualify for the Section 883 exemption, the Company’s U.S. source shipping income, i.e., 50% of its gross shipping income attributable to transportation beginning or ending in the U.S. (but not both beginning and ending in the U.S.) is subject to a 4% tax without allowance for deductions (the “U.S. gross transportation tax”).

 

During the year ended December 31, 2017, the Company recorded estimated U.S. gross transportation tax of $365 which was recorded in Voyages expenses in the Consolidated Statements of Operations.  During the years ended December 31, 2019 and 2018, the Company qualified for Section 883 exemption and, therefore, did not record any U.S. gross transportation tax. 

 

Income taxes

 

To the extent the Company’s U.S. source shipping income, or other U.S. source income, is considered to be effectively connected income, as described below, any such income, net of applicable deductions, would be subject to the U.S. federal corporate income tax, imposed at a 21% rate effective 2018. In addition, the Company may be subject to a 30% "branch profits" tax on such income, and on certain interest paid or deemed paid attributable to the conduct of such trade or business. Shipping income is generally sourced 100% to the United States if attributable to transportation exclusively between United States ports (the Company is prohibited from conducting such voyages), 50% to the United States if attributable to transportation that begins or ends, but does not both begin and end, in the United States (as described in “United States Gross Transportation Tax” above) and otherwise 0% to the United States.

 

The Company’s U.S. source shipping income would be considered effectively connected income only if:

 

·

the Company has, or is considered to have, a fixed place of business in the U.S. involved in the earning of U.S. source shipping income; and

 

·

substantially all of the Company’s U.S. source shipping income is attributable to regularly scheduled transportation, such as the operation of a vessel that follows a published schedule with repeated sailings at regular intervals between the same points for voyages that begin or end in the U.S.

 

The Company does not intend to have, or permit circumstances that would result in having, any vessel sailing to

or from the U.S. on a regularly scheduled basis. Based on the current shipping operations of the Company and the

Company’s expected future shipping operations and other activities, the Company believes that none of its U.S. source

shipping income will constitute effectively connected income. However, the Company may from time to time generate

non-shipping income that may be treated as effectively connected income.

 

The Company established Genco Shipping Pte. Ltd. (“GSPL”), which is based in Singapore, on September 8, 2017.  GSPL applied for and was awarded the Maritime Sector Incentive – Approved International Shipping Enterprise (“MSI-AIS”) status under Section 13F of the Singapore Income Tax Act (“SITA”) by the Maritime and Port Authority of Singapore.  The award is for an initial period of 10 years, commencing on August 15, 2018, and is subject to a review of performance at the end of the initial five year period.  The MSI-ASI status provides for a tax exemption on income derived by GSPL from qualifying shipping operations under Section 13F of the SITA.  Income from non-qualifying activities is taxable at the prevailing Singapore Corporate income tax rate (currently 17%).  During the years ended December 31, 2019, 2018 and 2017, there was no income tax recorded by GSPL.

 

During 2018, the Company established Genco Shipping A/S, which is a Danish-incorporated corporation which is based in Copenhagen and considered to be a resident for tax purposes in Denmark.  Genco Shipping A/S was subject to corporate taxes in Denmark a rate of 22% during 2018 and 2019.  During the years ended December 31, 2019 and 2018, Genco Shipping A/S recorded $241 and $79, respectively, of income tax in Other income (expense) in the Consolidated Statements of Operations.

 

Deferred revenue

 

Deferred revenue primarily relates to cash received from charterers prior to it being earned.  These amounts are recognized as income when earned.  Additionally, deferred revenue includes estimated customer claims mainly due to time charter performance issues.  Refer to “Revenue recognition” above for description of the Company’s revenue recognition policy.

 

Nonvested stock awards

 

The Company follows ASC Subtopic 718-10, “Compensation — Stock Compensation” (“ASC 718-10”), for nonvested stock issued under its equity incentive plans.  Stock-based compensation costs from nonvested stock have been classified as a component of additional paid-in capital in the Consolidated Statements of Equity.

 

Accounting estimates

 

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Significant estimates include vessel valuations, the valuation of amounts due from charterers, performance claims, residual value of vessels, useful life of vessels and the fair value of derivative instruments, if any.  Actual results could differ from those estimates.

 

Concentration of credit risk

 

Financial instruments that potentially subject the Company to concentrations of credit risk are amounts due from charterers and cash and cash equivalents.  With respect to amounts due from charterers, the Company attempts to limit its credit risk by performing ongoing credit evaluations and, when deemed necessary, requires letters of credit, guarantees or collateral.  The Company earned all of its voyage revenues from 170,  182 and 102 customers during the years ended December 31, 2019, 2018 and 2017. 

 

For the years ended December 31, 2019 and 2018, there were no customers that individually accounted for more than 10% of voyage revenues. For the year ended December 31, 2017, there were two customers that individually accounted for more than 10% of voyage revenues; Swissmarine Services S.A., including its subsidiaries (“Swissmarine”) and Clipper Group, including Clipper Bulk Shipping, the Clipper Logger Pool and the Clipper Sapphire Pool (“Clipper”), which represented 15.09% and 10.98% of voyage revenues, respectively.  

 

At December 31, 2019 and 2018, the Company maintains all of its cash and cash equivalents with four financial institutions.  None of the Company’s cash and cash equivalent balance is covered by insurance in the event of default by these financial institutions.

 

Fair value of financial instruments

 

The estimated fair values of the Company’s financial instruments, such as amounts due to / due from charterers, accounts payable and long-term debt, approximate their individual carrying amounts as of December 31, 2019 and 2018 due to their short-term maturity or the variable-rate nature of the respective borrowings under the credit facilities.  See Note 8 — Fair Value of Financial Instruments for additional disclosure on the fair value of long-term debt.

 

Recent accounting pronouncements

 

In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-13, “Disclosure Framework: Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”),” which change the disclosure requirements for fair value measurements by removing, adding, and modifying certain disclosures. This ASU is effective for fiscal years beginning after December 15, 2019, and for interim periods within that year.  Early adoption is permitted for any eliminated or modified disclosures upon issuance of this ASU.  The Company has evaluated the impact of the adoption of ASU 2018-03 and has determined that there is no effect on its consolidated financial statements.

 

In May 2017, the FASB issued ASU No. 2017-09, “Compensation – Stock Compensation (Topic 718), Scope of Modification Accounting” (“ASU 2017-09”).  This ASU provides guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting.  This ASU is effective for fiscal years beginning after December 15, 2017, and for interim periods within that year and early adoption is permitted.  ASU 2017-09 must be applied prospectively to an award modified on or after the adoption date.  The Company adopted ASU 2017-09 during the first quarter of 2018 and there was no effect on its consolidated financial statements.

 

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230):  Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”).  This ASU adds or clarifies the guidance in ASC 230 – Statement of Cash Flows regarding the classification of certain cash receipts and payments in the statement of cash flows.  This ASU is effective for fiscal years beginning after December 15, 2017, and for interim periods within those years and early adoption is permitted.  This ASU shall be applied retrospectively to all periods presented, but may be applied prospectively from the earliest date practicable if retrospective application would be impracticable.  The Company adopted ASU 2016-15 during the first quarter of 2018.  The retrospective application of ASU 2016-15 resulted in insurance proceeds for protection and indemnity claims and loss of hire claims to be separately disclosed in the cash flows from operating activities and resulted in insurance proceeds for hull and machinery claims to be separately disclosed in the cash flows from investing activities.  These amounts were previously recorded in the cash flows from operating activities as the change in prepaid expenses and other current assets.  Additionally, as part of ASU 2016-15, any cash payments for debt prepayment or debt extinguishment costs (including third party costs, premiums paid and other fees paid to lenders) must be classified as cash outflows for financing activities.  Lastly, for any debt instruments that contain interest payable in-kind, any cash payments attributable to the payment of in-kind interest will be classified as cash outflows for operating activities.  There were no cash payments for in-kind interest during the years ended December 31, 2019 and 2017.  Refer to the Consolidated Statements of Cash Flows.

 

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASC 842”), which replaced the existing guidance in ASC 840 – Leases (“ASC 840”).  This ASU requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases.  Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability for leases with lease terms of more than twelve months. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset and for operating leases, the lessee would recognize a straight-line total lease expense.  Accounting by lessors will remain largely unchanged from current U.S. GAAP.  The requirements of this standard include an increase in required disclosures.  This ASU was effective for fiscal years beginning after December 15, 2018, and for interim periods within those fiscal years.  Lessees and lessors were required to apply the new standard at the beginning of the earliest period presented in the financial statements in which they first apply the new guidance, using a modified retrospective transition method. In July 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements” which provided clarifications and improvements to ASC 842, including allowing entities to elect an additional transition method with which to adopt ASC 842.  The approved transition method enables entities to apply the transition requirements at the effective date of ASC 842 (rather than at the beginning of the earliest comparative period presented as currently required) with the effect of the initial application of ASC 842 recognized as a cumulative-effect adjustment to retained earnings in the period of adoption.  As a result, an entity’s reporting for the comparative periods presented in the year of adoption would continue to be in accordance with ASC 840, including the disclosure requirements of ASC 840.   The Company adopted ASC 842 on January 1, 2019 using this transition method. 

 

The new guidance provides a number of optional practical expedients in the transition.  The Company had elected the package of practical expedients, which among other things, allows the carryforward of the historical lease classification. Further, upon implementation of the new guidance, the Company has elected the practical expedients to combine lease and non-lease components and to not recognize right-of-use assets and lease liabilities for short-term leases.  Upon adoption of ASC 842 on January 1, 2019, the Company recorded a right-of-use asset of $9,710  and an operating lease liability of $13,095 in the Consolidated Balance Sheets.  Refer to Note 13 — Leases for further information regarding our operating lease agreement and the effect of the adoption of ASC 842 from a lessor perspective.  

 

Pursuant to ASC 842, the Company has identified revenue from its time charter agreements as lease revenue.  Refer to Note 12 — Voyage revenue for additional information regarding the adoption of ASC 842 from a lessor perspective. 

 

In January 2016, the FASB issued ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). This ASU requires that equity investments be measured at fair value with changes in fair value recognized in net income (loss). ASU 2016-01 is effective for annual periods beginning after December 15, 2017, and interim periods within those years. The Company adopted ASU 2016-01 during the first quarter of 2018 and there was no impact on the Company’s consolidated financial statements as the Company currently does not have any equity investments.

 

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09” or “ASC 606”), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle is that a company should recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASC 606 defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2017, and interim periods therein, and shall be applied either retrospectively to each period presented or as a cumulative effect adjustment as of the date of adoption (the “modified retrospective transition method”). The Company adopted ASC 606 during the first quarter of 2018 using the modified retrospective transition method applied to all contracts and determined that the only impact was to spot market voyage charter contracts that were not completed as of January 1, 2018. Upon adoption, the Company recognized the cumulative effect of adopting this guidance as an adjustment to its opening balance of retained deficit as of January 1, 2018. Prior periods were not retrospectively adjusted. The adoption of ASC 606 did not have a financial impact on the recognition of revenue generated from time charter agreements, spot market-related time charters and pool agreements. Refer to Note 12 — Voyage Revenue for further discussion of the financial impact on the Company’s consolidated financial statements.

v3.19.3.a.u2
CASH FLOW INFORMATION
12 Months Ended
Dec. 31, 2019
CASH FLOW INFORMATION  
CASH FLOW INFORMATION

3 - CASH FLOW INFORMATION

 

For the year ended December 31, 2019, the Company had non-cash investing activities not included in the Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expenses consisting of $548 for the Purchase of vessels and ballast water treatment systems, including deposits, $9,520 for the Purchase of scrubbers, $413 for the Purchase of other fixed assets and $118 for the Net proceeds from sale of vessels.  For the year ended December 31, 2019, the Company had non-cash financing activities not included in the Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expenses consisting of $74 for Cash dividends paid.

 

For the year ended December 31, 2018, the Company had non-cash investing activities not included in the Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expenses consisting of $2,228 for the Purchase of vessels and ballast water treatment systems, including deposits, $428 for the Purchase of Scrubbers, $262 for the Net proceeds from sale of vessels and $360 for the Purchase of other fixed assets.  For the year ended December 31, 2018, the Company had non-cash financing activities not included in the Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expenses consisting of $105 for the Payment of common stock issuance costs and $1 for Payment of deferred financing costs.

 

For the year ended December 31, 2017, the Company had non-cash investing activities not included in the Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expenses consisting of $36 for the Purchase of other fixed assets.

 

Professional fees and trustee fees incurred related to the Company’s emergence of bankruptcy on July 9, 2014 in the amount of $0 were recognized by the Company in Reorganization items, net for the year ended December 31, 2017.  During this period, $25 of professional fees and trustee fees were paid through December 31, 2017 and $0 is included in Accounts payable and accrued expenses as of December 31, 2017.

 

During the year ended December 31, 2019, the Company made a reclassification of $10,303 from Vessels, net of accumulated depreciation and Fixed assets, net of accumulated depreciation and amortization to Vessels held for sale due to the approval by the Board of Directors to sell the Genco Thunder prior to December 31, 2019.  Refer to Note 4 — Vessel Acquisitions and Dispositions.

 

During the year ended December 31, 2018, the Company made a reclassification of $5,702 from Vessels, net of accumulated depreciation to Vessels held for sale due to the approval by the Board of Directors to sell the Genco Vigour prior to December 31, 2018.  Refer to Note 4 — Vessel Acquisitions and Dispositions.

 

During the years ended December 31, 2019, 2018 and 2017, cash paid for interest, excluding the PIK interest paid as a result of the refinancing of the $400 Million Credit Facility, was $28,376,  $30,167 and $25,098, respectively.  Refer to Note 7 Debt. 

 

During the years ended December 31, 2019, 2018 and 2017, there was no cash paid for estimated income taxes.

 

On May 15, 2019, the Company issued 29,580 restricted stock units to certain members of the Board of Directors.  The aggregate fair value of these restricted stock units was $255.

 

On March 4, 2019, the Company issued 106,079 restricted stock units and options to purchase 240,540 shares of the Company’s stock at an exercise price of $8.065, as adjusted for the special dividend declared on November 5, 2019, to certain individuals. The fair value of these restricted stock units and stock options were $890 and $904, respectively.

 

On May 15, 2018, the Company issued 14,268 restricted stock units to certain members of the Board of Directors.  These restricted stock units vested on May 15, 2019.  The aggregate fair value of these restricted stock units was $255.

 

On February 27, 2018, the Company issued 37,436 restricted stock units and options to purchase 122,608 shares of the Company’s stock at an exercise price of $13.365, as adjusted for the special dividend declared on November 5, 2019, to certain individuals.  The fair value of these restricted stock units and stock options were $512 and $926, respectively.

 

On May 17, 2017, the Company issued 25,197 restricted stock units to certain members of the Board of Directors.  These restricted stock units vested on May 15, 2018.  The aggregate fair value of these restricted stock units was $255. 

 

On March 23, 2017, the Company issued 292,398 restricted stock units and options to purchase 133,000 shares with an exercise price of $10.805, as adjusted for the special dividend declared on November 5, 2019, per share to John C. Wobensmith, Chief Executive Officer and President.  The fair value of these restricted stock units and stock options were $3,254 and $853, respectively.

 

Refer to Note 16 — Stock-Based Compensation for further information regarding the aforementioned grants.

 

v3.19.3.a.u2
VESSEL ACQUISITIONS AND DISPOSITIONS
12 Months Ended
Dec. 31, 2019
VESSEL ACQUISITIONS AND DISPOSITIONS  
VESSEL ACQUISITIONS AND DISPOSITIONS

4 - VESSEL ACQUISITIONS AND DISPOSITIONS

 

Vessel Acquisitions

 

On June 6, 2018, the Company entered into an agreement for the en bloc purchase of four drybulk vessels, including two Capesize drybulk vessels and two Ultramax drybulk vessels for approximately $141,000.  Each vessel was built with a fuel-saving “eco” engine.  The Genco Resolute, a 2015-built Capesize vessel, was delivered on August 14, 2018 and the Genco Endeavour, a 2015-built Capesize vessel, was delivered on August 15, 2018.  The Genco Weatherly, a 2014-built Ultramax vessel, was delivered on July 26, 2018 and the Genco Columbia, a 2016-built Ultramax vessel, was delivered on September 10, 2018. The Company utilized a combination of cash on hand and proceeds from the $108 Million Credit Facility to finance the purchase.

 

On July 12, 2018, the Company entered into agreements to purchase two 2016-built Capesize drybulk vessels for an aggregate purchase price of $98,000.  The Genco Defender was delivered on September 6, 2018, and the Genco Liberty was delivered on September 11, 2018. The Company utilized a combination of cash on hand and proceeds from the $108 Million Credit Facility to finance the purchase.

 

Vessel Dispositions

 

On November 4, 2019, the Company entered into an agreement to sell the Genco Raptor, a 2007-built Panamax vessel, for $10,200 less a 2.0% broker commission payable to a third party.  The sale was completed on December 11, 2019.  The Genco Raptor served as collateral under the $495 Million Credit Facility; therefore, $6,045 of the net proceeds received from the sale will remain classified as restricted cash for 180 days following the sale date, which has been reflected as current restricted cash in the Consolidated Balance Sheets as of December 31, 2019.  That amount can be used to towards the financing of a replacement vessel or vessels meeting certain requirements and added as collateral under the facility.  If such a replacement vessel is not added as collateral within such 180 day period, the Company will be required to use the proceeds as a loan prepayment.  

 

On September 25, 2019, the Company entered into an agreement to sell the Genco Thunder, a 2007-built Panamax vessel, for $10,400 less a 2.0% broker commission payable to a third party.  The sale is expected to be completed during the first quarter of 2020.  The vessel assets have been classified as held for sale in the Consolidated Balance Sheets as of December 31, 2019.  The Genco Thunder serves as collateral under the $495 Million Credit Facility.

 

On September 20, 2019, the Company entered into an agreement to sell the Genco Champion, a 2006-built Handysize vessel, for $6,600 less a 3.0% broker commission payable to a third party.  The sale was completed on October 21, 2019.  On August 2, 2019, the Company entered into an agreement to sell the Genco Challenger, a 2003-built Handysize vessel, for $5,250 less a 2.0% broker commission payable to a third party.  The sale was completed on October 10, 2019.  The Genco Champion and Genco Challenger served as collateral under the $495 Million Credit Facility; therefore, $6,880 of the net proceeds from the sale of these two vessels was required to be used as a loan prepayment since a replacement vessel was not going to be added as collateral within 180 days following the sales dates. Refer to Note 7 — Debt for further information.

 

On November 23, 2018, the Company entered into an agreement to sell the Genco Vigour, a 1999-built Panamax vessel, to a third party for $6,550 less a 2.0% broker commission payable to a third party.  The sale was completed on January 28, 2019.  The vessel assets were classified as held for sale in the Consolidated Balance Sheets as of December 31, 2018.  

 

On November 21, 2018, the Company entered into an agreement to sell the Genco Knight, a 1999-built Panamax vessel, to a third party for $6,200 less a 3.0% broker commission payable to a third party.  The sale was completed on December 26, 2018.

 

On November 15, 2018, the Company entered into an agreement to sell the Genco Beauty, a 1999-built Panamax vessel, to a third party for $6,560 less a 3.0% broker commission payable to a third party.  The sale was completed on December 17, 2018.

 

On October 31, 2018, the Company entered into an agreement to sell the Genco Muse, a 2001-built Handymax vessel, to a third party for $6,660 less a 2.0% broker commission payable to a third party.  The sale was completed on December 5, 2018.

 

On August 30, 2018, the Company entered into an agreement to sell the Genco Cavalier, a 2007-built Supramax vessel, to a third party for $10,000 less a 2.5% broker commission payable to a third party.  The sale was completed on October 16, 2018.  This vessel served as collateral under the $495 Million Credit Facility; therefore, $4,947 of the net proceeds received from the sale remained classified as restricted cash for 180 days following the sale date which was reflected as current restricted cash in the Consolidated Balance Sheets as of December 31, 2018.  That amount could be used towards the financing of a replacement vessel or vessels meeting certain requirements and added as collateral under the facility.  If such a replacement vessel was not added as collateral within such 180 day period, the Company was required to use the proceeds as a loan prepayment.  On April 15, 2019, the Company utilized these proceeds as a loan prepayment under the $495 Million Credit Facility, refer to Note 7 — Debt. 

 

On July 24, 2018, the Company entered into an agreement to sell the Genco Surprise, a 1998-built Panamax vessel, for $5,300 less a 3.0% broker commission payable to a third party.  The sale was completed on August 7, 2018.

 

On June 27, 2018, the Company reached agreements to sell the Genco Explorer and the Genco Progress, both 1999-built Handysize vessels, to a third party for $5,600 each less a 3.0% broker commission payable to a third party.  The sale of the Genco Progress was completed on September 13, 2018 and the sale of the Genco Explorer was completed on November 13, 2018.

 

With the exception of the Genco Cavalier, the aforementioned six vessels that were sold during the year ended December 31, 2018 and the Genco Vigour do not serve as collateral under any of the Company’s credit facilities; therefore the Company was not required to pay down any indebtedness with the proceeds from the sales. 

 

On December 19, 2016, the Board of Directors unanimously approved selling the Genco Prosperity, a 1997-built Handymax vessel, and on December 21, 2016, the Company reached an agreement to sell the Genco Prosperity to a third party for $3,050 less a 3.5% broker commission payable to a third party.  The sale was completed on May 16, 2017.

 

On December 5, 2016, the Board of Directors unanimously approved selling the Genco Success, a 1997-built Handymax vessel, and on December 15, 2016, the Company reached an agreement to sell the Genco Success to a third party for $2,800 less a 3.0% broker commission payable to a third party.  The sale was completed on March 19, 2017. 

 

During January 2017, the Board of Directors unanimously approved selling the Genco Carrier, a 1998-built Handymax vessel, and on January 25, 2017, the Company reached an agreement to sell the Genco Carrier to a third party for $3,560 less a $92 broker commission payable to a third party.  The sale was completed on February 16, 2017. 

 

During January 2017, the Board of Directors unanimously approved selling the Genco Reliance, a 1999-built Handysize vessel, and on January 12, 2017, the Company reached an agreement to sell the Genco Reliance to a third party for $3,500 less a 3.5% broker commission payable to a third party.  The sale was completed on February 9, 2017.

 

On December 19, 2016, the Board of Directors unanimously approved selling the Genco Wisdom, a 1997-built Handymax vessel. On December 21, 2016, the Company reached an agreement to sell the Genco Wisdom to a third party for $3,250 less a 3.5% broker commission payable to a third party.  The sale was completed on January 9, 2017.

 

Refer to Note 1 — General Information for a listing of the delivery dates for the vessels in the Company’s fleet.

v3.19.3.a.u2
NET LOSS PER SHARE
12 Months Ended
Dec. 31, 2019
NET LOSS PER SHARE  
NET LOSS PER SHARE

5 - NET LOSS PER SHARE

 

The computation of basic net loss per share is based on the weighted-average number of common shares outstanding during the reporting period. The computation of diluted net loss per share assumes the vesting of nonvested stock awards and the exercise of stock options (refer to Note 16 — Stock-Based Compensation), for which the assumed proceeds upon vesting are deemed to be the amount of compensation cost attributable to future services and are not yet recognized using the treasury stock method, to the extent dilutive.  There were 162,097,  149,170 and 226,931 shares of restricted stock and restricted stock units excluded from the computation of diluted net loss per share during the years ended December 31, 2019, 2018 and 2017, respectively, because they were anti-dilutive.  There were 496,148,  255,608 and 133,000 stock options excluded from the computation of diluted net loss per share during the years ended December 31, 2019, 2018 and 2017, respectively, because they were anti-dilutive. (refer to Note 16 — Stock-Based Compensation)

 

The Company’s diluted net loss per share will also reflect the assumed conversion of the equity warrants issued when the Company emerged from bankruptcy on July 9, 2014 (the “Effective Date”) and MIP Warrants issued by the Company (refer to Note 16 — Stock-Based Compensation) if the impact is dilutive under the treasury stock method. The equity warrants have a 7-year term which commenced on the day following the Effective Date and are exercisable for one tenth of a share of the Company’s common stock.  There were no unvested MIP Warrants during the years ended December 31, 2019, 2018 and 2017 excluded from the computation of diluted net loss per share because they were anti-dilutive.  There were 3,936,761 equity warrants excluded from the computation of diluted net loss per share during the years ended December 31, 2019, 2018 and 2017 because they were anti-dilutive.  

 

 

The components of the denominator for the calculation of basic and diluted net loss per share are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended December 31,

 

 

 

 

2019

    

2018

  

2017

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding, basic:

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding, basic 

 

41,762,893

 

38,382,599

 

34,242,631

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding, diluted:

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding, basic 

 

41,762,893

 

38,382,599

 

34,242,631

 

 

 

 

 

 

 

 

 

 

 

Dilutive effect of warrants 

 

 —

 

 —

 

 —

 

 

 

 

 

 

 

 

 

 

 

Dilutive effect of stock options

 

 —

 

 —

 

 —

 

 

 

 

 

 

 

 

 

 

 

Dilutive effect of restricted stock awards 

 

 —

 

 —

 

 —

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding, diluted 

 

41,762,893

 

38,382,599

 

34,242,631

 

 

 

v3.19.3.a.u2
RELATED PARTY TRANSACTIONS
12 Months Ended
Dec. 31, 2019
RELATED PARTY TRANSACTIONS  
RELATED PARTY TRANSACTIONS

6 - RELATED PARTY TRANSACTIONS

 

During the years ended December 31, 2019, 2018 and 2017, the Company did not identify any related party transactions. 

v3.19.3.a.u2
DEBT
12 Months Ended
Dec. 31, 2019
DEBT  
DEBT

7 - DEBT

 

Long-term debt consists of the following:

 

 

 

 

 

 

 

 

 

 

 

December 31, 

 

December 31, 

 

 

    

2019

    

2018

 

Principal amount 

 

$

495,824

 

$

551,420

 

Less:  Unamortized debt financing costs 

 

 

(13,094)

 

 

(16,272)

 

Less: Current portion 

 

 

(69,747)

 

 

(66,320)

 

 

 

 

 

 

 

 

 

Long-term debt, net

 

$

412,983

 

$

468,828

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

 

December 31, 2018

 

 

 

 

 

 

Unamortized

 

 

 

 

Unamortized

 

 

 

 

 

 

Debt Issuance

 

 

 

 

Debt Issuance

 

 

    

Principal

    

Cost

    

Principal

    

Cost

 

$495 Million Credit Facility

 

$

395,724

 

$

11,642

 

$

445,000

 

$

14,423

 

$108 Million Credit Facility

 

 

100,100

 

 

1,452

 

 

106,420

 

 

1,849

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total debt

 

$

495,824

 

$

13,094

 

$

551,420

 

$

16,272

 

 

As of December 31, 2019 and 2018, $13,094 and $16,272 of deferred financing costs, respectively, were presented as a direct deduction within the outstanding debt balance in the Company’s Consolidated Balance Sheets.  Amortization expense for deferred financing costs for the years ended December 31, 2019, 2018 and 2017 was $3,788,  $3,035 and $2,325, respectively.  This amortization expense is recorded as a component of Interest expense in the Consolidated Statements of Operations.

 

Effective June 5, 2018, the portion of the unamortized deferred financing costs for the $400 Million Credit Facility and 2014 Term Loan Facilities that was identified as a debt modification, rather than an extinguishment of debt, is being amortized over the life of the $495 Million Credit Facility in accordance with ASC 470-50.  During the year ended December 31, 2018, the Company paid $2,962 of debt extinguishment costs in relation to the refinancing of the $400 Million Credit Facility, the $98 Million Credit Facility and the 2014 Term Loan Facilities with the $495 Million Credit Facility. 

 

On November 5, 2019, the Company entered into amendments with its lenders to the dividend covenants of the credit agreements for the $495 Million Credit Facility and the $108 Million Credit Facility.  Under the terms of these two facilities as so amended, dividends or repurchases of our stock are subject to customary conditions.  The Company may pay dividends or repurchase stock under these facilities to the extent its total cash and cash equivalents are greater than $100,000 and 18.75% of our total indebtedness, whichever is higher; if the Company cannot satisfy this condition, the Company is subject to a limitation of 50% of consolidated net income for the quarter preceding such dividend payment or stock repurchase if the collateral maintenance test ratio is 200% or less for such quarter, for which purpose the full commitment of up to $35,000 of the scrubber tranche under the $495 Million Credit Facility is assumed to be drawn.

 

$108 Million Credit Facility

 

On August 14, 2018, the Company entered into a five-year senior secured credit facility (the “$108 Million Credit Facility”) with Crédit Agricole Corporate & Investment Bank (“CACIB”), as Structurer and Bookrunner, CACIB and Skandinaviska Enskilda Banken AB (Publ) as Mandate Lead Arrangers, CACIB as Administrative Agent and as Security Agent, and the other lenders party thereto from time to time.  The Company has used proceeds from the $108 Million Credit Facility to finance a portion of the purchase price for the six vessels, including four Capesize Vessels and two Ultramax vessels, which were delivered to the Company during the three months ended September 30, 2018 (refer to Note 4 —  Vessel Acquisitions and Dispositions).  These six vessels also serve as collateral under the $108 Million Credit Facility.  The Company drew down a total of $108,000 during the third quarter of 2018, which represents 45% of the appraised value of the six vessels.

 

As of December 31, 2019, there was no availability under the $108 Million Credit Facility.  Total debt repayments of $6,320 and $1,580 were made during the years ended December 31, 2019 and 2018, respectively, under the $108 Million Credit Facility.  There were  no debt repayments made during the year ended December 31, 2017.  As of December 31, 2019 and 2018, the total outstanding net debt balance was $98,648 and $104,571, respectively.

 

The $108 Million Credit Facility provides for the following key terms:

 

·

The final maturity date of the $108 Million Credit Facility is August 14, 2023.

 

·

Borrowings under the $108 Million Credit Facility bear interest at London Interbank Offered Rate (“LIBOR”) plus 2.50% through September 30, 2019 and LIBOR plus a range of 2.25% to 2.75% thereafter, dependent upon the Company’s ratio of total net indebtedness to the last twelve months EBITDA.

 

·

Scheduled amortization payments under the $108 Million Credit Facility reflect a repayment profile whereby the facility shall have been repaid to nil when the average vessel aged of the collateral vessels reaches 20 years.  Based on this, the required repayments are $1,580 per quarter commencing on December 31, 2018, with a final balloon payment on the maturity date.

 

·

Mandatory prepayments are to be applied to remaining amortization payments pro rata, while voluntary prepayments are to be applied to remaining amortization payments in order of maturity.

 

·

Pursuant to the November 5, 2019 amendment, the Company may pay dividends or repurchase stock to the extent the Company’s total cash and cash equivalents are greater than $100,000 and 18.75% of its total indebtedness, whichever is higher; if the Company cannot satisfy this condition, the Company is subject to a limitation of 50% of consolidated net income for the quarter preceding such dividend payment or stock repurchase if the collateral maintenance test ratio is 200% or less for such quarter.

 

·

Acquisitions and additional indebtedness are allowed subject to compliance with financial covenants (including a collateral maintenance test) and other customary conditions.

 

·

Key financial covenants are substantially similar to those under the Company’s $495 Million Credit Facility and include:

 

·

minimum liquidity, with unrestricted cash and cash equivalents to equal or exceed the greater of $30,000 and 7.5% of total indebtedness;

 

·

minimum working capital, with consolidated current assets (excluding restricted cash) minus consolidated current liabilities (excluding the current portion of long-term indebtedness) to be not less than zero;

 

·

debt to capitalization, with the ratio of total indebtedness to total capitalization to be not more than 70%; and

 

·

collateral maintenance, with the aggregate appraised value of collateral vessels to be at least 135% of the principal amount of the loan outstanding under the $108 Million Credit Facility.

 

As of December 31, 2019, the Company was in compliance with all of the financial covenants under the $108  Million Credit Facility.

 

The following table sets forth the scheduled repayment of the outstanding principal debt of $100,100 at December 31, 2019 under the $108 Million Credit Facility:

 

 

 

 

 

 

Year Ending December 31, 

    

Total

 

 

 

 

 

 

2020

 

$

6,320

 

2021

 

 

6,320

 

2022

 

 

6,320

 

2023

 

 

81,140

 

 

 

 

 

 

Total debt

 

$

100,100

 

 

$495 Million Credit Facility

 

On May 31, 2018, the Company entered into a five-year senior secured credit facility for an aggregate amount of up to $460,000 with Nordea Bank AB (publ), New York Branch (“Nordea”), as Administrative Agent and Security Agency, the various lenders party thereto, and Nordea, Skandinaviska Enskilda Banken AB (publ), ABN AMRO Capital USA LLC, DVB Bank SE, Crédit Agricole Corporate & Investment Bank, and Danish Ship Finance A/S as Bookrunners and Mandated Lead Arrangers.  Deutsche Bank AG Filiale Deutschlandgeschäft, and CTBC Bank Co. Ltd. are Co-Arrangers under this facility.  On June 5, 2018, proceeds of $460,000 under this facility were used, together with cash on hand, to refinance all of the Company’s existing credit facilities (the $400 Million Credit Facility, $98 Million Credit Facility and 2014 Term Loan Facilities. as defined below) into one facility, and pay down the debt on seven of the Company’s oldest vessels, which have been identified for sale. 

 

On February 28, 2019, the Company entered into an Amendment and Restatement Agreement (the “Amendment”) for this credit facility (the “$495 Million Credit Facility”) with Nordea Bank AB (publ), New York Branch  (“Nordea”), as Administrative Agent and Security Agent, the various lenders party thereto, and Nordea, Skandinaviska Enskilda Banken AB (publ), ABN AMRO Capital USA LLC, DVB Bank SE, Crédit Agricole Corporate & Investment Bank, and Danish Ship Finance A/S  as Bookrunners and Mandated Lead Arrangers.  The Amendment provides for an additional tranche up to $35,000 to finance a portion of the acquisitions, installations, and related costs for scrubbers for 17 of the Company’s Capesize vessels.  On August 28, 2019 and September 23, 2019, the Company made total drawdowns of $9,300 and $12,200, respectively, under the $35 Million tranche of the $495 Million Credit Facility.

 

On November 15, 2019, the Company utilized $6,880 of the proceeds from the sale of the Genco Challenger and Genco Champion which were sold during the fourth quarter of 2019 as a loan prepayment under the $495 Million Credit Facility.  Additionally, on April 15, 2019, the Company utilized $4,947 of the proceeds from the sale of the Genco Cavalier that was classified as restricted cash as of December 31, 2018 as a loan prepayment under the $495 Million Credit Facility.  Under the terms of the $495 Million Credit Facility, the amount received from the proceeds of the sale of a collateralized vessel can be used towards the financing of a replacement vessel or vessels meeting certain requirements and added as collateral under the facility.  However, since a replacement vessel was not added as collateral within the 180 day period stipulated in the $495 Million Credit Facility, the Company was required to utilize the proceeds as a loan prepayment. 

 

On May 10, 2019 and July 5, 2019, the Company prepaid $15,000 for the amortization payment originally scheduled for June 30, 2019 and September 30, 2019, respectively.  As the prepayment amounts exceeded the revised scheduled quarterly amortization payment, the excess payment was applied to the next scheduled quarterly amortization payment due as per the repayment schedule.

 

As of December 31, 2019, there was $12,525 of availability under the $495 Million Credit Facility.  Total debt repayments of $70,776 and $15,000 were made during the years ended December 31, 2019 and 2018, respectively, under the $495 Million Credit Facility.  There were no debt repayments made during the year ended December 13, 2017.  As of December 31, 2019 and December 31, 2018, the total outstanding net debt balance was $384,082 and $430,577, respectively.

 

The $495 Million Credit Facility provides for the following key terms in relation to the $460,000 tranche:

 

·

The final maturity date is May 31, 2023.

 

·

Borrowings bear interest at LIBOR plus 3.25% through December 31, 2018 and LIBOR plus a range of 3.00% and 3.50% thereafter, dependent upon the Company’s ratio of total net indebtedness to the last twelve months EBITDA.  Original scheduled amortization payments were  $15,000 per quarter commencing on December 31, 2018, with a final payment of $190,000 due on the maturity date.  As a result of the loan prepayments for the vessel sales as noted above, scheduled amortization payments were recalculated in accordance with the terms of the facility.  Scheduled amortization payments were revised to $14,321 which commenced on December 30, 2019, with a final payment of $188,049 due on the maturity date.

 

·

Scheduled amortization payments may be recalculated upon the Company’s request based on changes in collateral vessels, prepayments of the loan made as a result of a collateral vessel disposition as part of the Company’s fleet renewal program, or voluntary prepayments, subject in each case to a minimum repayment profile under which the loan will be repaid to nil when the average age of the vessels serving as collateral from time to time reaches 17 years.  Mandatory prepayments are applied to remaining amortization payments pro rata, while voluntary prepayments are applied to remaining amortization payments in order of maturity.

 

·

Acquisitions and additional indebtedness are allowed subject to compliance with financial covenants, a collateral maintenance test, and other customary conditions.

 

The $495 Million Credit Facility provides for the following key terms in relation to the $35,000 tranche:

 

·

The final maturity date is May 31, 2023.

 

·

Borrowings under the tranche may be incurred pursuant to multiple drawings on or prior to March 30, 2020 in minimum amounts of $5,000 and may be used to finance up to 90% of the scrubber costs noted above.

 

·

Borrowings under the tranche will bear interest at LIBOR plus 2.50% through September 30, 2019 and LIBOR plus a range of 2.25% to 2.75% thereafter, dependent upon the Company’s ratio of total net indebtedness to the last twelve months’ EBITDA.

 

·

The tranche is subject to equal consecutive quarterly repayments commencing on the last day of the fiscal quarter ending March 31, 2020 in an amount reflecting a repayment profile whereby the loans shall have been repaid after four years calculated from March 31, 2020. Assuming that the full $35,000 is borrowed, each quarterly repayment amount was originally scheduled to be equal to $2,500.  However, as a result of the loan prepayments for the vessel sales as noted above, the availability under the $35,000 tranche was reduced to $34,025.  Assuming that the full $34,025 is borrowed, scheduled quarterly repayments would be approximately $2,430 commencing March 31, 2020. 

 

The $495 Million Credit Facility provides for the following key terms:

 

·

Pursuant to the November 5, 2019 amendment, the Company may pay dividends or repurchase stock to the extent the Company’s total cash and cash equivalents are greater than $100,000 and 18.75% of the Company’s total indebtedness, whichever is higher; if the Company cannot satisfy this condition, the Company is subject to a limitation of 50% of consolidated net income for the quarter preceding such dividend payment if the collateral maintenance test ratio is 200% or less for such quarter, with the full commitment of up to $35,000 of the scrubber tranche assumed to be drawn.

 

·

Collateral vessels can be sold or disposed of without prepayment of the loan if a replacement vessel or vessels meeting certain requirements are included as collateral within 120 days of such sale or disposition.  On February 13, 2019, the Company entered into an amendment with its lenders to extend this period to 180 days. In addition:

 

·

the Company must be in compliance with the collateral maintenance test;

 

·

the replacement vessels must become collateral for the loan; and either

 

·

the replacement vessels must have an equal or greater appraised value that the collateral vessels for which they are substituted, or

 

·

ratio of the aggregate appraised value of the collateral vessels (including replacement vessels) to the outstanding loan amount after the collateral disposition (accounting for any prepayments of the loan by the time the replacement vessels become collateral vessels) must equal or exceed the aggregate appraised value of the collateral vessels to the outstanding loan before the collateral disposition.

 

·

Key financial covenants include:

 

·

minimum liquidity, with unrestricted cash and cash equivalents to equal or exceed the greater of $30,000 and 7.5% of total indebtedness (no restricted cash is required);

 

·

minimum working capital, with consolidated current assets (excluding restricted cash) minus consolidated current liabilities (excluding the current portion of long-term indebtedness) to be not less than zero;

 

·

debt to capitalization, with the ratio of total indebtedness to total capitalization to be not more than 70%; and

 

·

collateral maintenance, with the aggregate appraised value of collateral vessels to be at least 135% of the principal amount of the loan outstanding under the $495 Million Credit Facility.

 

·

Collateral includes the current vessels in the Company’s fleet other than the seven oldest vessels in the fleet which have been identified for sale, collateral vessel earnings and insurance, and time charters in excess of 24 months in respect of the collateral vessels.

 

As of December 31, 2019, the Company was in compliance with all of the financial covenants under the $495 Million Credit Facility.

 

The following table sets forth the scheduled repayment of the outstanding principal debt of $395,724 at December 31, 2019 under the $495 Million Credit Facility:

   

 

 

 

 

 

Year Ending December 31, 

    

Total

 

 

 

 

 

 

2020

 

$

63,427

 

2021

 

 

63,427

 

2022

 

 

63,427

 

2023

 

 

205,443

 

 

 

 

 

 

Total debt

 

$

395,724

 

 

$400 Million Credit Facility

 

On November 10, 2016, the Company entered into a senior secured term loan facility, the $400 Million Credit Facility, in an aggregate principal amount of up to $400,000 with Nordea Bank Finland plc, New York Branch, Skandinaviska Enskilda Banken AB (publ), DVB Bank SE, ABN AMRO Capital USA LLC, Crédit Agricole Corporate and Investment Bank, Deutsche Bank AG Filiale Deutschlandgeschäft, Crédit Industriel et Commercial and BNP Paribas.  On November 15, 2016, the proceeds under the $400 Million Credit Facility were used to refinance six of the Company’s prior credit facilities.  The $400 Million Credit Facility was collateralized by 45 of the Company’s vessels and at December 31, 2016, required the Company to sell five remaining unencumbered vessels, which were sold during the year ended December 31, 2017.  On November 14, 2016, the Company borrowed the maximum available amount of $400,000. 

 

The $400 Million Credit Facility had a maturity date of November 15, 2021 and the principal borrowed under the facility bore interest at LIBOR for an interest period of three months plus a margin of 3.75%.  The Company had the option to pay 1.50% of such rate in-kind (“PIK interest”) through December 31, 2018, of which was payable on the maturity date of the facility.  The Company opted to make the PIK interest election through September 29, 2017. As of December 31, 2019 and 2018, the Company did not have any PIK interest recorded.  The $400 Million Credit Facility originally had scheduled amortization payments of (i) $100 per quarter through December 31, 2018, (ii) $7,610 per quarter from March 31, 2019 through December 31, 2020, (iii) $18,571 per quarter from March 31, 2021 through September 30, 2021 and (iv) $282,605 upon final maturity on November 15, 2021, which did not include PIK interest.   Pursuant to the credit facility agreement, upon the payment of any excess cash flow to the lenders (see below), the scheduled repayments were adjusted to reflect the reduction of future amortization amounts. 

 

There was no collateral maintenance testing for the $400 Million Credit Facility prior to June 30, 2018.  Thereafter, there was to be required collateral maintenance testing with a gradually increasing threshold calculated as the value of the collateral under the facility as a percentage of the loan outstanding as follows: 105% from June 30, 2018 to December 30, 2018, 115% from December 31, 2018 to December 30, 2020 and 135% thereafter. 

 

The $400 Million Credit Facility required the Company to comply with a number of covenants substantially similar to those in the Company’s other credit facilities, including financial covenants related to debt to total book capitalization, minimum working capital, minimum liquidity, and dividends; collateral maintenance requirements (as described above); and other customary covenants.  The Company was required to maintain a ratio of total indebtedness to total capitalization of not greater than 0.70 to 1.00 at all times.  Minimum working capital as defined in the $400 Million Credit Facility was not to be less than $0 at all times.  The $400 Million Credit Facility had minimum liquidity requirements at all times for all vessels in its fleet of (i) $250 per vessel to and including December 31, 2018, (ii) $400 per vessel from January 1, 2019 to and including December 31, 2019 and (iii) $700 per vessel from January 1, 2020 and thereafter. The Company was prohibited from paying dividends without lender consent through December 31, 2020.  The Company was able to establish non-recourse subsidiaries to incur indebtedness or make investments, but it was restricted from incurring indebtedness or making investments (other than through non-recourse subsidiaries).  Excess cash from the collateralized vessels under the $400 Million Credit Facility was subject to a cash sweep.  The cash flow sweep was 100% of excess cash flow through December 31, 2018, 75% through December 31, 2020 and the lesser of 50% of excess cash flow or an amount that would reflect a 15-year average vessel age repayment profile thereafter; provided no prepayment under the cash sweep was required from the first $10,000 in aggregate of the prepayments otherwise required under the cash sweep.  During the years ended December 31, 2019 and 2018, the Company repaid $0 and $15,428, respectively, for the excess cash flow sweep.

 

There were no debt repayments made during the year ended December 31, 2019 under the $400 Million Credit Facility.  Total debt repayments of $404,941 (which includes $5,341 of PIK interest) and $400 were made during the years ended December 31, 2018 and 2017, respectively, under the $400 Million Credit Facility. 

 

On June 5, 2018, the $400 Million Credit Facility was refinanced with the $495 Million Credit Facility; refer to the “$495 Million Credit Facility” section above.  At December 31, 2019 and 2018, there was no outstanding debt under the $400 Million Credit Facility.

 

$98 Million Credit Facility

 

On November 4, 2015, thirteen of the Company’s wholly-owned subsidiaries entered into a Facility Agreement, by and among such subsidiaries as borrowers (collectively, the “Borrowers”); Genco Holdings Limited, a newly formed direct subsidiary of Genco of which the Borrowers are direct subsidiaries (“Holdco”); certain funds managed or advised by Hayfin Capital Management, Breakwater Capital Ltd, or their nominee, as lenders; and Hayfin Services LLP, as agent and security agent (the “$98 Million Credit Facility”).  The Borrowers borrowed the maximum available amount of $98,271 under the facility on November 10, 2015.

 

Borrowings under the facility were available for working capital purposes.  The facility had a final maturity date of September 30, 2020, and the principal borrowed under the facility bore interest at LIBOR for an interest period of three months plus a margin of 6.125% per annum.  The facility had no fixed amortization payments for the first two years and fixed amortization payments of $2,500 per quarter thereafter.  To the extent the value of the collateral under the facility is 182% or less of the loan amount outstanding, the Borrowers were to prepay the loan from earnings received from operation of the thirteen collateral vessels after deduction of the following amounts:  costs, fees, expenses, interest, and fixed principal repayments under the facility; operating expenses relating to the thirteen vessels; and the Borrowers’ pro rata share of general and administrative expenses based on the number of vessels they own.

 

The Facility Agreement requires the Borrowers and, in certain cases, the Company and Holdco to comply with a number of covenants substantially similar to those in the other credit facilities of Genco and its subsidiaries, including financial covenants related to maximum leverage, minimum consolidated net worth, minimum liquidity, and dividends; collateral maintenance requirements; and other customary covenants. The Company was prohibited from paying dividends under this facility until December 31, 2018. Following December 31, 2018, the amount of dividends the Company could pay was limited based on the amount of the repayment of at least $25,000 of the loan under such facility, as well as the ratio of the value of vessels and certain other collateral pledged under such facility.  The Facility Agreement includes usual and customary events of default and remedies for facilities of this nature. 

 

Borrowings under the facility were secured by first priority mortgage on the vessels owned by the Borrowers, namely the Genco Constantine, the Genco Augustus, the Genco London, the Genco Titus, the Genco Tiberius, the Genco Hadrian, the Genco Knight, the Genco Beauty, the Genco Vigour, the Genco Predator, the Genco Cavalier, the Genco Champion, and the Genco Charger, and related collateral.  Pursuant to the Facility Agreement and a separate Guarantee executed by the Company, the Company and Holdco were acting as guarantors of the obligations of the Borrowers and each other under the Facility Agreement and its related documentation.

 

On November 15, 2016, the Company entered into an Amending and Restating Agreement which amended and restated the credit agreements and the guarantee for the $98 Million Credit Facility (the “Restated $98 Million Credit Facility”).  The Restated $98 Million Credit Facility provided for the following: reductions in the minimum liquidity requirements consistent with the $400 Million Credit Facility, except the minimum liquidity amount for the collateral vessels under this facility was $750 per vessel, which was reflected as restricted cash; netting of certain amounts against the measurements of the collateral maintenance covenant, which remained in place with a 140% value to loan threshold; a portion of amounts required to be maintained under the minimum liquidity covenant for this facility may, under certain circumstances, have been used to prepay the facility to maintain compliance with the collateral maintenance covenant; elimination of the original maximum leverage ratio and minimum net worth covenants; and restrictions on incurring indebtedness, making investments (other than through non-recourse subsidiaries) or paying dividends, similar to those provided for in the $400 Million Credit Facility.  The minimum working capital and the total indebtedness to total capitalization were the same as the $400 Million Credit Facility. 

 

There were no debt repayments made during the year ended December 31, 2019 under the $98 Million Credit Facility.  Total debt repayments of $93,939 and $1,332 were made during the years ended December 31, 2018 and 2017, respectively. 

 

On June 5, 2018, the $98 Million Credit Facility was refinanced with the $495 Million Credit Facility; refer to the “$495 Million Credit Facility” section above.  At December 31, 2019 and 2018, there was no outstanding debt under the $98 Million Credit Facility.

 

2014 Term Loan Facilities

 

On October 8, 2014, Baltic Trading and its wholly-owned subsidiaries, Baltic Hornet Limited and Baltic Wasp Limited, each entered into a loan agreement and related documentation for a credit facility in a principal amount of up to $16,800 with ABN AMRO Capital USA LLC and its affiliates (the “2014 Term Loan Facilities”) to partially finance the newbuilding Ultramax vessel that each subsidiary acquired, namely the Baltic Hornet and Baltic Wasp, respectively.  Amounts borrowed under the 2014 Term Loan Facilities were not allowed to be reborrowed.  The 2014 Term Loan Facilities had a ten-year term, and the facility amount was the lowest of 60% of the delivered cost per vessel, $16,800 per vessel, and 60% of the fair market value of each vessel at delivery.  The 2014 Term Loan Facilities were insured by the China Export & Credit Insurance Corporation (Sinosure) in order to cover political and commercial risks for 95% of the outstanding principal plus interest, which was recorded in deferred financing fees.  Borrowings under the 2014 Term Loan Facilities bore interest at the three or six-month LIBOR rate plus an applicable margin of 2.50% per annum.  Borrowings were to be repaid in 20 equal consecutive semi-annual installments of 1/24 of the facility amount plus a balloon payment of 1/6 of the facility amount at final maturity.  Principal repayments commenced six months after the actual delivery date for each respective vessel.

 

Borrowings under the 2014 Term Loan Facilities were secured by liens on the vessels acquired with borrowings under these facilities, namely the Baltic Hornet and Baltic Wasp, and other related assets. The Company guaranteed the obligations of the Baltic Hornet and Baltic Wasp under the 2014 Term Loan Facilities.

 

On November 15, 2016, the Company entered into Supplemental Agreements with lenders under our 2014 Term Loan Facilities which, among other things, amended the Company’s collateral maintenance covenants under the 2014 Term Loan Facilities to provide that such covenants would not be tested through December 30, 2017 and the minimum collateral value to loan ratio was 100% from December 31, 2017, 105% from June 30, 2018, 115% from December 31, 2018 and 135% from December 31, 2019.  These Supplemental Agreements also provided for certain other amendments to the 2014 Term Loan Facilities, which included reductions in the minimum liquidity requirements consistent with the $400 Million Credit Facility and restrictions on incurring indebtedness, making investments (other than through non-recourse subsidiaries) or paying dividends, similar to the $400 Million Credit Facility. Additionally, the minimum working capital required was the same as the $400 Million Credit Facility.  Lastly, the maximum leverage requirement was equivalent to the debt to total capitalization requirement in the $400 Million Credit Facility.

 

There were no debt repayments made during the year ended December 31, 2019 under the 2014 Term Loan Facilities.  Total debt repayments of $25,544 and $2,763 were made during the years ended December 31, 2018 and 2017, respectively, under the 2014 Term Loan Facilities. 

 

On June 5, 2018, the 2014 Term Loan Facilities were refinanced with the $495 Million Credit Facility; refer to the “$495 Million Credit Facility” section above.  At December 31, 2019 and 2018, there was no outstanding debt under the 2014 Term Loan Facilities. 

 

Interest rates

 

The following tables set forth the effective interest rate associated with the interest expense for the Company’s debt facilities noted above, including the costs associated with unused commitment fees, if applicable. The following tables also include the range of interest rates on the debt, excluding the impact of unused commitment fees, if applicable:

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended December 31,

 

 

    

2019

 

2018

 

2017

 

  

Effective Interest Rate 

 

5.31

%  

5.71

%  

5.29

%  

  

Range of Interest Rates (excluding unused commitment fees) 

 

4.05 % to 5.76

%  

3.83 % to 8.43

%  

3.36 % to 7.82

%  

  

 

Letter of credit

 

In conjunction with the Company entering into a long-term office space lease (See Note 13 — Leases), the Company was required to provide a letter of credit to the landlord in lieu of a security deposit.  As of September 21, 2005, the Company obtained an annually renewable unsecured letter of credit with DnB NOR Bank at a fee of 1% per annum.  During September 2015, the Company replaced the unsecured letter of credit with DnB NOR Bank with an unsecured letter of credit with Nordea Bank Finland Plc, New York and Cayman Island Branches (“Nordea”) in the same amount at a fee of 1.375% per annum.  The letter of credit outstanding was $300 as of December 31, 2019 and 2018 at a fee of 1.375% per annum.  The letter of credit is cancelable on each renewal date provided the landlord is given 30 days minimum notice.  As of December 31, 2019 and 2018, the letter of credit outstanding has been securitized by $315 that was paid by the Company to Nordea during the year ended December 31, 2015.  These amounts have been recorded as restricted cash included in total noncurrent assets in the Consolidated Balance Sheets as of December 31, 2019 and 2018.

v3.19.3.a.u2
FAIR VALUE OF FINANCIAL INSTRUMENTS
12 Months Ended
Dec. 31, 2019
FAIR VALUE OF FINANCIAL INSTRUMENTS  
FAIR VALUE OF FINANCIAL INSTRUMENTS

8 - FAIR VALUE OF FINANCIAL INSTRUMENTS

 

The fair values and carrying values of the Company’s financial instruments at December 31, 2019 and 2018 which are required to be disclosed at fair value, but not recorded at fair value, are noted below.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

 

December 31, 2018

 

 

    

Carrying

    

 

 

    

Carrying

    

 

 

 

 

    

Value

    

Fair Value

    

Value

    

Fair Value

 

Cash and cash equivalents

 

$

155,889

 

$

155,889

 

$

197,499

 

$

197,499

 

Restricted cash

 

 

6,360

 

 

6,360

 

 

5,262

 

 

5,262

 

Floating rate debt

 

 

495,824

 

 

495,824

 

 

551,420

 

 

551,420

 

 

The carrying value of the borrowings under the $495 Million Credit Facility and the $108 Million Credit Facility as of December 31, 2019 and 2018  approximate their fair value due to the variable interest nature thereof as each of these credit facilities represent floating rate loans.  Refer to Note 7 — Debt for further information regarding the Company’s credit facilities.  The $495 Million Credit Facility was utilized to refinance the $400 Million Credit Facility, $98 Million Credit Facility and 2014 Term Loan Facilities on June 5, 2018 and was subsequently amended on February 28, 2019 and November 5, 2019.  The carrying amounts of the Company’s other financial instruments at December 31, 2019 and 2018 (principally Due from charterers and Accounts payable and accrued expenses) approximate fair values because of the relatively short maturity of these instruments.

 

ASC Subtopic 820-10, “Fair Value Measurements & Disclosures” (“ASC 820-10”), applies to all assets and liabilities that are being measured and reported on a fair value basis.  This guidance enables the reader of the consolidated financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 requires significant management judgment. The three levels are defined as follows:

 

·

Level 1—Valuations based on quoted prices in active markets for identical instruments that the Company is able to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these instruments does not entail a significant degree of judgment.

 

·

Level 2—Valuations based on quoted prices in active markets for instruments that are similar, or quoted prices in markets that are not active for identical or similar instruments, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

 

·

Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

 

Cash and cash equivalents and restricted cash are considered Level 1 items as they represent liquid assets with short-term maturities. Floating rate debt is considered to be a Level 2 item as the Company considers the estimate of rates it could obtain for similar debt or based upon transactions amongst third parties.  Nonrecurring fair value measurements include vessel impairment assessments completed during the interim period and at year-end as determined based on third party quotes, which are based off of various data points, including comparable sales of similar vessels, which are Level 2 inputs.  During the year ended December 31, 2019, the vessel assets for five of the Company’s vessels were written down as part of the impairment recorded during the year ended December 31, 2019.  Additionally, during the year ended December 31, 2018, the vessels assets for ten of the Company’s vessels were written down as part of the impairment recorded during the year ended December 31, 2018.  Lastly, during the year ended December 31, 2017, the vessel assets for six of the Company’s vessels were written down as part of the impairment recorded during the year ended December 31, 2017.  The vessel held for sale as of December 31, 2019 was written down as part of the impairment recorded during the year ended December 31, 2019.  The vessel held for sale as of December 31, 2018 was written down as part of the impairment recorded during the year ended December 31, 2017 and there were no additional adjustments required as of December 31, 2018 when the held for sale criteria was met. Refer to “Impairment of long-lived assets” and “Vessels held for sale” sections in Note 2 — Summary of Significant Accounting Policies.    

 

Nonrecurring fair value measurements also include impairment tests conducted by the Company during the year ended December 31, 2019 of its operating lease right-of use asset.  The fair value determination for the operating lease right-of-use asset was based on third party quotes, which is considered a Level 2 input.  During the year ended December 31, 2019, the operating lease right-of-use asset was written down as part of the impairment of right-of-use asset recorded during the year ended December 31, 2019.  Refer to Note 13 — Leases. The Company did not have any Level 3 financial assets or liabilities during the years ended December 31, 2019 and 2018.

v3.19.3.a.u2
PREPAID EXPENSES AND OTHER CURRENT ASSETS
12 Months Ended
Dec. 31, 2019
PREPAID EXPENSES AND OTHER CURRENT ASSETS  
PREPAID EXPENSES AND OTHER CURRENT ASSETS

9 - PREPAID EXPENSES AND OTHER CURRENT ASSETS

 

Prepaid expenses and other current assets consist of the following:

 

 

 

 

 

 

 

 

 

 

    

December 31, 

    

December 31, 

 

 

    

2019

    

2018

 

Vessel stores

 

$

638

 

$

597

 

Capitalized contract costs

 

 

1,952

 

 

2,289

 

Prepaid items

 

 

2,870

 

 

3,426

 

Insurance receivable

 

 

2,039

 

 

851

 

Advance to agents

 

 

1,162

 

 

1,109

 

Other

 

 

1,388

 

 

2,177

 

Total prepaid expenses and other current assets

 

$

10,049

 

$

10,449

 

 

v3.19.3.a.u2
FIXED ASSETS
12 Months Ended
Dec. 31, 2019
FIXED ASSETS  
FIXED ASSETS

10 - FIXED ASSETS

 

Fixed assets consist of the following:

 

 

 

 

 

 

 

 

 

 

    

December 31, 

    

December 31, 

 

 

    

2019

    

2018

 

Fixed assets, at cost:

 

 

 

 

 

 

 

Vessel equipment

 

$

7,288

 

$

2,873

 

Furniture and fixtures

 

 

467

 

 

462

 

Leasehold improvements

 

 

100

 

 

 —

 

Computer equipment

 

 

275

 

 

236

 

Total costs

 

 

8,130

 

 

3,571

 

Less: accumulated depreciation and amortization

 

 

(2,154)

 

 

(1,281)

 

Total fixed assets, net

 

$

5,976

 

$

2,290

 

 

v3.19.3.a.u2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
12 Months Ended
Dec. 31, 2019
ACCOUNTS PAYABLE AND ACCRUED EXPENSES.  
ACCOUNTS PAYABLE AND ACCRUED EXPENSES

11 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES

 

Accounts payable and accrued expenses consist of the following:

 

 

 

 

 

 

 

 

 

 

    

December 31, 

    

December 31, 

 

 

    

2019

    

2018

 

Accounts payable

 

$

26,040

 

$

15,110

 

Accrued general and administrative expenses

 

 

4,105

 

 

4,298

 

Accrued vessel operating expenses

 

 

19,459

 

 

9,735

 

Total accounts payable and accrued expenses

 

$

49,604

 

$

29,143

 

 

v3.19.3.a.u2
VOYAGE REVENUE
12 Months Ended
Dec. 31, 2019
VOYAGE REVENUE  
VOYAGE REVENUE

12 – VOYAGE REVENUE

 

Total voyage revenue includes revenue earned on fixed rate time charters, spot market voyage charters, spot market-related time charters and vessel pools, as well as the sale of bunkers consumed during short-term time charters. For the years ended December 31, 2019, 2018 and 2017, the Company earned $389,496,  $367,522 and $209,698 of voyage revenue, respectively.  $2,325 of net profit sharing revenue was included in voyage revenue for the year ended December 31, 2017.  There was no profit sharing revenue earned during the years ended December 31, 2019 and 2018. 

 

On January 1, 2018, the Company adopted the revenue recognition guidance under ASC 606 (refer to Note 2 — Summary of Significant Accounting Policies) using the modified retrospective method applied to contracts that were not completed as of January 1, 2018.  The financial results for reporting periods beginning after January 1, 2018 are presented under the new guidance, while prior period amounts are not adjusted and will be continued to be reported under previous guidance. 

 

As a result of the adoption of the new revenue recognition guidance on January 1, 2018, the Company recorded a net increase to the opening retained deficit of $659 for the cumulative impact of adopting the new guidance.  The impact related primarily to the change in accounting for spot market voyage charters.  Prior to the adoption of the new guidance, revenue for spot market voyage charters was recognized ratably over the total transit time of the voyage, which previously commenced the latter of when the vessel departed from its last discharge port and when an agreement was entered into with the charterer, and ended at the time the discharge of cargo was completed at the discharge port.  As a result of the adoption of the new guidance, revenue for spot market voyage charters is now being recognized ratably over the total transit time of the voyage which now begins when the vessel arrives at the loading port and ends at the time the discharge of cargo is completed at the discharge port in accordance with ASC 606.  Spot market voyage charter agreements do not provide the charterers with substantive decision-making rights to direct how and for what purpose the vessel is used, therefore revenue from spot market voyage charters is not within the scope of ASC 842.  Additionally, the Company has identified that the contract fulfillment costs of spot market voyage charters consist primarily of the fuel consumption that is incurred by the Company from the latter of the end of the previous vessel employment and the contract date until the arrival at the loading port in addition to any port expenses incurred prior to arrival at the load port, as well as any charter hire expenses for third party vessels that are chartered-in.  The fuel consumption and any port expenses incurred prior to arrival at the load port during this period is capitalized and recorded in Prepaid expenses and other current assets in the Consolidated Balance Sheets and is amortized ratably over the total transit time of the voyage from arrival at the loading port until the vessel departs from the discharge port and expensed as part of Voyage Expenses.  Similarly, for any third party vessels that are chartered-in, the charter hire expenses during this period are capitalized and recorded in Prepaid expenses and other current assets in the Consolidated Balance Sheets and are amortized and expensed as part of Charter hire expenses. Refer also to Note 9 — Prepaid Expenses and Other Current Assets.  All of the revenue for spot market voyage charters that was included in Deferred revenue (contract liability) in the Consolidated Balance Sheet as of January 1, 2018 when ASC 606 was adopted has been recognized during the year ended December 31, 2018. 

 

During time charter agreements, including fixed rate time charters and spot market-related time charters, the charterers have substantive decision-making rights to direct how and for what purpose the vessel is used.  As such, the Company has identified that time charter agreements contain a lease in accordance with ASC 842.  During time charter agreements, the Company is responsible for operating and maintaining the vessels.  These costs are recorded as vessel operating expenses in the Consolidated Statements of Operations.  The Company has elected the practical expedient that allows the Company to combine lease and non-lease components under ASC 842 as the Company believes (1) the timing and pattern of recognizing revenues for operating the vessel is the same as the timing and pattern of recognizing vessel leasing revenue; and (2) the lease component, if accounted for separately, would be classified as an operating lease. 

 

Total voyage revenue recognized in the Consolidated Statements of Operations includes the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ended

 

 

 

 

December 31, 

 

 

    

2019

 

2018

 

2017

 

Lease revenue

 

$

108,096

 

$

168,392

 

$

181,249

 

Spot market voyage revenue

 

 

281,400

 

 

199,130

 

 

28,449

 

Total voyage revenues

 

$

389,496

 

$

367,522

 

$

209,698

 

 

v3.19.3.a.u2
LEASES
12 Months Ended
Dec. 31, 2019
LEASES  
LEASES

13 – LEASES

 

Effective April 4, 2011, the Company entered into a seven-year sub-sublease agreement for its main office in New York, New York.  The term of the sub-sublease commenced June 1, 2011, with a free base rental period until October 31, 2011. Following the expiration of the free base rental period, the monthly base rental payments were $82 per month until May 31, 2015 and thereafter were $90 per month until the end of the seven-year term.  Pursuant to the sub-sublease agreement, the sublessor was obligated to contribute $472 toward the cost of the Company’s alterations to the sub-subleased office space.  The Company has also entered into a direct lease with the over-landlord of such office space that commenced immediately upon the expiration of such sub-sublease agreement, for a term covering the period from May 1, 2018 to September 30, 2025; the direct lease provided for a free base rental period from May 1, 2018 to September 30, 2018.  Following the expiration of the free base rental period, the monthly base rental payments are $186 per month from October 1, 2018 to April 30, 2023 and $204 per month from May 1, 2023 to September 30, 2025.  For accounting purposes, the sub-sublease agreement and direct lease agreement with the landlord constitute one lease agreement. 

 

In addition, during October 2017 the Company entered into a lease for office space in Singapore that expired in January 2019.  A lease was signed for a new office space in Singapore effective January 17, 2019 for a three-year term.

 

Lastly, during July 2018, the Company entered into a lease for office space in Copenhagen, which commenced on July 1, 2018 and ended on April 30, 2019.  A lease was signed for a new office space in Copenhagen effective May 1, 2019 for a minimum period ending May 1, 2023.

 

The Company adopted ASC 842 using the transition method on January 1, 2019 (refer to Note 2 — Summary of Significant Accounting Policies) and has identified these leases as operating leases.  Variable rent expense, such as utilities and escalation expenses, are excluded from the determination of the operating lease liability and the Company has deemed these insignificant.  The Company used its incremental borrowing rate as the discount rate under ASC 842 since the rate implicit in the lease cannot be readily determined.

 

On June 14, 2019, the Company entered into a sublease agreement for a portion of the leased space for its main office in New York, New York that commenced on July 26, 2019 and will end on September 29, 2025.  There was a free base rental period for the first four and a half months commencing on July 26, 2019.  Following the expiration of the free base rental period, the monthly base sublease income will be $102 per month until September 29, 2025.  The sublease income for the portion of the leased space is less than the lease payments due for the space, which has been identified as an indicator of impairment under ASC 360.  As such, the right-of-use asset for the subleased portion of the space was written down to its fair value during the second quarter of 2019 which resulted in $223 of impairment charges which has been recorded in Impairment of right-of-asset in the Consolidated Statements of Operations during the year ended December 31, 2019.  Sublease income is recorded net with the total operating lease costs in General and administrative expenses in the Consolidated Statements of Operations.  There was $72 of sublease income recorded during the year ended December 31, 2019.  There was no sublease income recorded for this sublease agreement during the years ended December 31, 2018 and 2017.

 

There was $1,884 of operating lease costs recorded during the year ended December 31, 2019 which was recorded in General and administrative expenses in the Consolidated Statements of Operations. 

 

Supplemental Consolidated Balance Sheets information related to the Company’s operating leases as of December 31, 2019 is as follows:  

 

 

 

 

 

 

 

 

December 31, 

 

 

 

2019

 

Operating Lease:

 

 

 

 

Operating lease right-of-use asset

 

$

8,241

 

 

 

 

 

 

Current operating lease liabilities

 

$

1,677

 

Long-term operating lease liabilities

 

 

9,826

 

Total operating lease liabilities

 

$

11,503

 

 

 

 

 

 

Weighted average remaining lease term (years)

 

 

5.75

 

Weighted average discount rate

 

 

5.15

%

 

Maturities of operating lease liabilities as of December 31, 2019 are as follows:

 

 

 

 

 

 

 

 

December 31, 

 

 

 

2019

 

2020

 

$

2,230

 

2021

 

 

2,230

 

2022

 

 

2,230

 

2023

 

 

2,378

 

2024

 

 

2,453

 

Thereafter

 

 

1,839

 

Total lease payments

 

 

13,360

 

Less imputed interest

 

 

(1,857)

 

Present value of lease liabilities

 

$

11,503

 

 

Maturities of operating lease liabilities as of December 31, 2018 are as follows:

 

 

 

 

 

 

 

 

December 31,

 

 

 

2018

 

2019

 

$

2,230

 

2020

 

 

2,230

 

2021

 

 

2,230

 

2022

 

 

2,230

 

2023

 

 

2,378

 

Thereafter

 

 

4,292

 

Total lease payments

 

 

15,590

 

 

Supplemental Condensed Consolidated Cash Flow information related to leases are as follows:

 

 

 

 

 

 

 

 

For the

 

 

 

Year Ended

 

 

 

December 31, 

 

 

 

2019

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

Operating cash flows from operating lease

 

$

2,230

 

 

Under the previous leasing guidance under ASC 840, the Company had deferred rent at December 31, 2018 of $3,468.  Rent expense pertaining to this lease for the years ended December 31, 2018 and 2017 under ASC 840 was $1,808 during each year.

 

During the second quarter of 2018, the Company began chartering-in third-party vessels.  Under ASC 842, the Company is the lessee in these agreements.  The Company has elected the practical expedient under ASC 842 to not recognize right-of-use assets and lease liabilities for short-term leases.  During the year ended December 31, 2019, all charter-in agreements for third-party vessels were less than twelve months and considered short-term leases.  Refer to Note 2  Summary of Significant Accounting Policies for the charter hire expenses recorded during the years ended December 31, 2019 and 2018 for these charter-in agreements.

v3.19.3.a.u2
COMMITMENTS AND CONTINGENCIES
12 Months Ended
Dec. 31, 2019
COMMITMENTS AND CONTINGENCIES  
COMMITMENTS AND CONTINGENCIES

14 - COMMITMENTS AND CONTINGENCIES

 

During the second half of 2018, the Company entered into agreements for the purchase of ballast water treatments systems (“BWTS”) for 42 of its vessels.  The cost of these systems will vary based on the size and specifications of each vessel and whether the systems will be installed in China during the vessels’ scheduled drydockings.  Based on the contractual purchase price of the BWTS and the estimated installation fees, the Company estimates the cost of the systems to be approximately $0.9 million for Capesize vessels, $0.6 million for Supramax vessels and $0.5 million for Handysize vessels. These costs will be capitalized and depreciated over the remainder of the life of the vessel.  The Company recorded $12,783 and $1,804 in Vessel assets in the Consolidated Balance Sheets as of December 31, 2019 and December 31, 2018, respectively, related to BWTS additions.  

 

On December 21, 2018, the Company entered into agreements to install scrubbers on its 17 Capesize vessels.  The Company completed scrubber installation on 16 of its Capesize vessels during the year ended December 31, 2019 and the remaining one Capesize vessel on January 17, 2020. The cost of each scrubber varied according to the specifications of the Company’s vessels and technical aspects of the installation, among other variables.  These costs are being capitalized and depreciated over the remainder of the life of the vessel.  The Company recorded $41,270 and $428 in Vessel assets in the Consolidated Balance Sheets as of December 31, 2019 and December 31, 2018, respectively, related to scrubber additions.  The Company has entered into an amendment to the $495 Million Credit Facility to provide financing to cover a portion of these expenses, refer to Note 7 Debt for further information.

 

v3.19.3.a.u2
SAVINGS PLAN
12 Months Ended
Dec. 31, 2019
SAVINGS PLAN  
SAVINGS PLAN

15 - SAVINGS PLAN

 

In August 2005, the Company established a 401(k) plan that is available to U.S. based full-time employees who meet the plan’s eligibility requirements.  This 401(k) plan is a defined contribution plan, which permits employees to make contributions up to maximum percentage and dollar limits allowable by IRS Code Sections 401(k), 402(g), 404 and 415 with the Company matching $1.17 for each dollar contributed up to the first six percent of each employee’s salary.  The matching contribution vests immediately.  For the years ended December 31, 2019, 2018 and 2017, the Company’s matching contributions to this plan were $399,  $380 and $385, respectively. 

 

v3.19.3.a.u2
STOCK-BASED COMPENSATION
12 Months Ended
Dec. 31, 2019
STOCK-BASED COMPENSATION  
STOCK-BASED COMPENSATION

16 - STOCK-BASED COMPENSATION

 

 

2014 Management Incentive Plan

 

On the Effective Date, pursuant to the Chapter 11 Plan, the Company adopted the Genco Shipping & Trading Limited 2014 Management Incentive Plan (the “MIP”). An aggregate of 966,806 shares of Common Stock were available for award under the MIP. Awards under the MIP took the form of restricted stock grants and three tiers of MIP Warrants with staggered strike prices based on increasing equity values.  The number of shares of common stock available under the Plan represented approximately 1.8% of the shares of post-emergence common stock outstanding as of the Effective Date on a fully-diluted basis. Awards under the MIP were available to eligible employees, non-employee directors and/or officers of the Company and its subsidiaries (collectively, “Eligible Individuals”). Under the MIP, a committee appointed by the Board from time to time (or, in the absence of such a committee, the Board) (in either case, the “Plan Committee”) may grant a variety of stock-based incentive awards, as the Plan Committee deems appropriate, to Eligible Individuals. The MIP Warrants are exercisable on a cashless basis and contain customary anti-dilution protection in the event of any stock split, reverse stock split, stock dividend, reclassification, dividend or other distributions (including, but not limited to, cash dividends), or business combination transaction. 

 

On August 7, 2014, pursuant to the MIP, certain individuals were granted MIP Warrants whereby each warrant can be converted on a cashless basis for the amount in excess of the respective strike price. The MIP Warrants were issued in three tranches for 238,066,  246,701, and 370,979 and have exercise prices,  as adjusted for the special dividend declared on November 5, 2019, of $247.01511 (the “$247.02 Warrants”), $273.89981 (the “$273.90 Warrants”) and $325.95317 (the “$325.95 Warrants”) per whole share, respectively. The fair value of each warrant upon emergence from bankruptcy was $7.22 for the $247.02 Warrants, $6.63 for the $273.90 Warrants and $5.63 for the $325.95 Warrants. The warrant values were based upon a calculation using the Black-Scholes-Merton option pricing formula. This model uses inputs such as the underlying price of the shares issued when the warrant is exercised, volatility, cost of capital interest rate and expected life of the instrument. The Company has determined that the warrants should be classified within Level 3 of the fair value hierarchy by evaluating each input for the Black-Scholes-Merton option pricing formula against the fair value hierarchy criteria and using the lowest level of input as the basis for the fair value classification. The Black-Scholes-Merton option pricing formula used a volatility of 43.91% (representing the six-year volatility of a peer group), a risk-free interest rate of 1.85% and a dividend rate of 0%.  The aggregate fair value of these awards upon emergence from bankruptcy was $54,436. The warrants vested 33.33% on each of the first three anniversaries of the grant date, with accelerated vesting upon a change in control of the Company.

 

For the years ended December 31, 2019, 2018 and 2017 the Company recognized amortization expense of the fair value of these warrants, which is included in General and administrative expenses, as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended December 31,

 

 

 

2019

 

2018

 

2017

 

General and administrative expenses

 

$

 —

 

$

 —

 

$

902

 

 

As of December 31, 2019 and 2018, there was no unamortized stock-based compensation for the warrants and all warrants were vested. The following table summarizes the unvested warrant activity for the year ended December 31, 2017: 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ended December 31,

 

 

 

2017

 

 

 

 

 

Weighted

 

Weighted

 

 

 

 

 

Average

 

Average

 

 

 

Number of

 

 Exercise

 

Fair

 

 

    

Warrants

    

Price

 

Value

 

Outstanding at January 1 - Unvested

 

713,122

 

$

303.12

 

$

6.36

 

Granted

 

 —

 

 

 —

 

 

 —

 

Exercisable

 

(713,122)

 

 

303.12

 

 

6.36

 

Exercised

 

 —

 

 

 —

 

 

 —

 

Forfeited

 

 —

 

 

 —

 

 

 —

 

 

 

 

 

 

 

 

 

 

 

Outstanding at December 31 - Unvested

 

 —

 

$

 —

 

$

 —

 

 

 

The following table summarizes certain information about the warrants outstanding as of December 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warrants Outstanding and Unvested,

 

Warrants Outstanding and Exercisable,

 

December 31, 2019

 

December 31, 2019

 

 

 

 

 

Weighted

 

 

 

 

 

 

Weighted

 

 

 

Weighted

 

Average

 

 

 

Weighted

 

Average

 

 

 

Average

 

Remaining

 

 

 

Average

 

Remaining

 

Number of

 

Exercise

 

Contractual

 

Number of

 

Exercise

 

Contractual

 

Warrants

    

Price

    

Life

    

Warrants

    

Price

    

Life

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 —

 

$

 —

 

 —

 

8,557,461

 

$

288.99

 

0.60

 

 

As of December 31, 2019 and 2018, a total of 8,557,461 of warrants were outstanding. 

 

The nonvested stock awards granted under the MIP vested ratably on each of the three anniversaries of August 7, 2014.  The nonvested stock awards issued under the MIP have a grant date price that represents the stock price on that date. As of December 31, 2019 and 2018, all stock awards granted under the MIP were vested. 

 

The table below summarizes the Company’s nonvested stock awards for the year ended December 31, 2017 that were issued under the MIP:

 

 

 

 

 

 

 

 

 

 

 

For the Year Ended December 31,

 

 

 

2017

 

 

 

 

 

Weighted

 

 

 

Number of

 

Average Grant

 

 

 

Shares

 

Date Price

 

Outstanding at January 1

 

9,255

 

$

200.00

 

Granted

 

 —

 

 

 —

 

Vested

 

(9,255)

 

 

200.00

 

Forfeited

 

 —

 

 

 —

 

 

 

 

 

 

 

 

Outstanding at December 31

 

 —

 

$

 —

 

 

The total fair value of MIP restricted shares that vested during the years ended December 31, 2019, 2018 and 2017 was $0,  $0 and $106, respectively.  The total fair value is calculated as the number of shares vested during the period multiplied by the fair value on the vesting date.

 

For the years ended December 31, 2019, 2018 and 2017, the Company recognized nonvested stock amortization expense for the MIP restricted shares, which is included in General and administrative expenses, as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended December 31,

 

 

 

2019

 

2018

 

2017

 

General and administrative expenses

 

$

 —

 

$

 —

 

$

368

 

 

The Company amortized these grants over the applicable vesting periods, net of anticipated forfeitures.  As of December 31, 2019 and 2018, there was no unrecognized compensation cost.

 

2015 Equity Incentive Plan

 

On June 26, 2015, the Company’s Board of Directors approved the 2015 Equity Incentive Plan for awards with respect to an aggregate of 400,000 shares of common stock (the “2015 Plan”).  Under the 2015 Plan, the Company’s Board of Directors, the compensation committee, or another designated committee of the Board of Directors may grant a variety of stock-based incentive awards to the Company’s officers, directors, employees, and consultants.  Awards may consist of stock options, stock appreciation rights, dividend equivalent rights, restricted (nonvested) stock, restricted stock units, and unrestricted stock.  As of December 31, 2019, the Company has awarded restricted stock units,  restricted stock and stock options under the 2015 Plan.

 

On March 23, 2017, the Board of Directors approved an amendment and restatement of the 2015 Plan.  This amendment and restatement increased the number of shares available for awards under the plan from 400,000 to 2,750,000, subject to shareholder approval; set the annual limit for awards to non-employee directors and other individuals as 500,000 and 1,000,000 shares, respectively; and modified the change in control definition.  The Company’s shareholders approved the increase in the number of shares at the Company’s 2017 Annual Meeting of Shareholders on May 17, 2017.

 

Stock Options 

   

On March 23, 2017, the Company issued options to purchase 133,000 of the Company’s shares of common stock to John C. Wobensmith, Chief Executive Officer and President, with an exercise price of $10.805 per share,  as adjusted for the special dividend declared on November 5, 2019.  One third of the options become exercisable on each of the first three anniversaries of October 15, 2016, with accelerated vesting upon a change in control of the Company, and all unexercised options expire on the sixth anniversary of the grant date.  The fair value of each option was estimated on the date of the grant using the Black-Scholes-Merton pricing formula, resulting in a value of $6.41 per share, or $853 in the aggregate.  The assumptions used in the Black-Scholes-Merton option pricing formula are as follows: volatility of 79.80% (representing a blend of the Company’s historical volatility and a peer-based volatility estimate due to limited trading history since emergence from bankruptcy), a risk-free interest rate of 1.68%, a dividend yield of 0%, and expected life of 3.78 years (determined using the simplified method as outlined in Staff Accounting Bulletin 14 – Share-Based Payment (“SAB Topic 14”) due to lack of historical exercise data). 

 

On February 27, 2018, the Company issued options to purchase 122,608 of the Company’s shares of common stock to certain individuals with an exercise price of $13.365 per share, as adjusted for the special dividend declared on November 5, 2019.  One third of the options become exercisable on each of the first three anniversaries of February 27, 2018, with accelerated vesting that may occur following a change in control of the Company, and all unexercised options expire on the sixth anniversary of the grant date.  The fair value of each option was estimated on the date of the grant using the Black-Scholes-Merton pricing formula, resulting in a value of $7.55 per share, or $926 in the aggregate.  The assumptions used in the Black-Scholes-Merton option pricing formula are as follows: volatility of 71.94% (representing a blend of the Company’s historical volatility and a peer-based volatility estimate due to limited trading history post recapitalization of the Company in November 2016), a risk-free interest rate of 2.53%, a dividend yield of 0%, and expected life of 4.00 years (determined using the simplified method as outlined in SAB Topic 14 due to lack of historical exercise data). 

 

On March 4, 2019, the Company issued options to purchase 240,540 of the Company’s shares of common stock to certain individuals with an exercise price of $8.065 per share,  as adjusted for the special dividend declared on November 5, 2019.  One third of the options become exercisable on each of the first three anniversaries of March 4, 2019, with accelerated vesting that may occur following a change in control of the Company, and all unexercised options expire on the sixth anniversary of the grant date.  The fair value of each option was estimated on the date of the grant using the Black-Scholes-Merton pricing formula, resulting in a value of $3.76 per share, or $904 in the aggregate.  The assumptions used in the Black-Scholes-Merton option pricing formula are as follows: volatility of 55.23% (representing the Company’s historical volatility), a risk-free interest rate of 2.49%, a dividend yield of 0%, and expected life of 4.00 years (determined using the simplified method as outlined in SAB Topic 14 due to lack of historical exercise data). 

 

For the years ended December 31, 2019, 2018 and 2017, the Company recognized amortization expense of the fair value of these options, which is included in General and administrative expenses, as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended December 31,

 

 

 

2019

 

2018

 

2017

 

General and administrative expenses

 

$

850

 

$

731

 

$

512

 

 

Amortization of the unamortized stock-based compensation balance of $590 as of December 31, 2019 is expected to be expensed $431,  $142 and $17 during the years ended December 31, 2020, 2021 and 2022, respectively.  The following table summarizes the unvested option activity for the years ended December 31, 2019, 2018 and 2017:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended December 31,

 

 

 

 

2019

 

2018

 

2017

 

 

 

 

 

 

Weighted

 

Weighted

 

 

 

Weighted

 

Weighted

 

 

 

Weighted

 

Weighted

 

 

 

 

Number

 

Average

 

Average

 

Number

 

Average

 

Average

 

Number

 

Average

 

Average

 

 

 

 

of

 

Exercise

 

Fair

 

of

 

Exercise

 

Fair

 

of

 

Exercise

 

Fair

 

 

 

    

Options

    

Price

    

Price

    

Options

    

Price

    

Price

    

Options

    

Price

    

Price

 

 

Outstanding at January 1 - Unvested

 

166,942

 

$

13.01

 

 

7.25

 

88,667

 

$

11.13

 

 

6.41

 

 —

 

$

 —

 

 

 —

 

 

Granted

 

240,540

 

 

8.33

 

 

3.76

 

122,608

 

 

13.69

 

 

7.55

 

133,000

 

 

11.13

 

 

6.41

 

 

Exercisable

 

(85,203)

 

 

12.36

 

 

6.96

 

(44,333)

 

 

11.13

 

 

6.41

 

(44,333)

 

 

11.13

 

 

6.41

 

 

Exercised

 

 —

 

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

Forfeited

 

 —

 

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at December 31 - Unvested

 

322,279

 

$

9.41

 

$

4.72

 

166,942

 

$

13.01

 

$

7.25

 

88,667

 

$

11.13

 

$

6.41

 

 

 

The following table summarizes certain information about the options outstanding as of December 31, 2019, as adjusted for the special dividend declared on November 5, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Options Outstanding and Unvested,

 

Options Outstanding and Exercisable,

 

 

 

 

December 31, 2019

 

December 31, 2019

 

Weighted

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

Weighted

 

Average

 

 

 

Weighted

 

Average

 

 

 

Weighted

 

Average

 

Exercise Price of

 

 

 

Average

 

Remaining

 

 

 

Average

 

Remaining

 

Outstanding

 

Number of

 

Exercise

 

Contractual

 

Number of

 

Exercise

 

Contractual

 

Options

    

Options

    

Price

    

Life

    

Options

    

Price

    

Life

 

$

10.11

 

322,279

 

$

9.41

 

4.92

 

173,869

 

$

11.41

 

3.45

 

 

As of December 31, 2019 and 2018, a total of 496,148 and 255,608 stock options were outstanding, respectively.

 

Restricted Stock Units

 

The Company has issued restricted stock units (“RSUs”) to certain members of the Board of Directors and certain executives and employees of the Company, which represent the right to receive a share of common stock, or in the sole discretion of the Company’s Compensation Committee, the value of a share of common stock on the date that the RSU vests.  As of December 31, 2019 and 2018,  326,247 and 216,304 shares, respectively, of the Company’s common stock were outstanding in respect of the RSUs.  Such shares will only be issued in respect of vested RSUs issued to directors when the director’s service with the Company as a director terminates.  Such shares of common stock will only be issued to executives and employees when their RSUs vest under the terms of their grant agreements and the amended 2015 Plan described above.  On May 17, 2017, 18,234 shares of common stock were issued to Eugene Davis, the former Chairman of the Audit Committee, in respect to vested RSUs following his departure from the Board.

 

The RSUs that have been issued to certain members of the Board of Directors generally vest on the date of the annual shareholders meeting of the Company following the date of the grant. In lieu of cash dividends issued for vested and nonvested shares held by certain members of the Board of Directors, the Company will grant additional vested and nonvested RSUs, respectively, which are calculated by dividing the amount of the dividend by the closing price per share of the Company’s common stock on the dividend payment date and will have the same terms as other RSUs issued to members of the Board of Directors.  The RSUs that have been issued to other individuals vest ratably on each of the three anniversaries of the determined vesting date.  The table below summarizes the Company’s unvested RSUs for the years ended December 31, 2019, 2018 and 2017:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

2017

 

 

 

 

Weighted

 

 

 

Weighted

 

 

 

Weighted

 

 

Number of

 

Average Grant

 

Number of

 

Average Grant

 

Number of

 

Average Grant

 

 

RSUs

 

Date Price

 

RSUs

 

Date Price

 

RSUs

    

Date Price

 

Outstanding at January 1

149,170

 

$

12.42

 

220,129

 

$

11.01

 

66,666

 

$

5.10

 

Granted

140,914

 

 

8.50

 

51,704

 

 

14.84

 

317,595

 

 

11.05

 

Vested

(127,988)

 

 

12.10

 

(122,663)

 

 

10.92

 

(164,132)

 

 

8.68

 

Forfeited

 —

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at December 31

162,096

 

$

9.26

 

149,170

 

$

12.42

 

220,129

 

$

11.01

 

 

The total fair value of the RSUs that vested during the years ended December 31, 2019, 2018 and 2017 was $1,235, $1,694 and $1,858, respectively. The total fair value is calculated as the number of shares vested during the period multiplied by the fair value on the vesting date.    

 

The following table summarizes certain information of the RSUs unvested and vested as of December 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

Unvested RSUs

 

Vested RSUs

 

December 31, 2019

 

December 31, 2019

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

Weighted

 

Average

 

 

 

Weighted

 

 

 

Average

 

Remaining

 

 

 

Average

 

Number of

 

Grant Date

 

Contractual

 

Number of

 

Grant Date

 

RSUs

    

Price

    

Life

    

RSUs

    

Price

 

162,096

 

$

9.26

 

1.67

 

422,223

 

$

11.47

 

 

The Company is amortizing these grants over the applicable vesting periods, net of anticipated forfeitures.  As of December 31, 2019, unrecognized compensation cost of $613 related to RSUs will be recognized over a weighted-average period of 1.67 years.

 

For the years ended December 31, 2019, 2018 and 2017, the Company recognized nonvested stock amortization expense for the RSUs, which is included in General and administrative expenses as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended December 31,

 

 

 

2019

 

2018

 

2017

 

General and administrative expenses

 

$

1,207

 

$

1,489

 

$

2,241

 

 

Restricted Stock

 

Under the 2015 Plan, grants of restricted common stock issued to executives ordinarily vest ratably on each of the three anniversaries of the determined vesting date.  As of December 31, 2019, all restricted stock awards under the 2015 Plan were vested.  The table below summarizes the Company’s nonvested stock awards for the years ended December 31, 2018 and 2017 that were issued under the 2015 Plan:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For theYears Ended December 31,

 

 

2018

 

2017

 

 

 

 

 

Weighted

 

 

 

Weighted

 

 

 

Number of

 

Average Grant

 

Number of

 

Average Grant

 

 

 

Shares

 

Date Price

    

Shares

 

Date Price

 

Outstanding at January 1

 

6,802

 

$

5.20

 

13,605

 

$

5.20

 

Granted 

 

 —

 

 

 —

 

 —

 

 

 —

 

Vested 

 

(6,802)

 

 

5.20

 

(6,803)

 

 

5.20

 

Forfeited 

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at December 31

 

 —

 

$

 —

 

6,802

 

$

5.20

 

 

The total fair value of shares that vested under the 2015 Plan during the years ended December 31, 2018 and 2017 was $60  and $71, respectively.  The total fair value is calculated as the number of shares vested during the period multiplied by the fair value on the vesting date.

 

For the years ended December 31, 2019, 2018 and 2017, the Company recognized nonvested stock amortization expense for the 2015 Plan restricted shares, which is included in General and administrative expenses, as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended December 31,

 

 

 

2019

 

2018

 

2017

 

General and administrative expenses

 

$

 —

 

$

11

 

$

30

 

 

v3.19.3.a.u2
LEGAL PROCEEDINGS
12 Months Ended
Dec. 31, 2019
LEGAL PROCEEDINGS  
LEGAL PROCEEDINGS

17 - LEGAL PROCEEDINGS

 

From time to time, the Company may be subject to legal proceedings and claims in the ordinary course of its business, principally personal injury and property casualty claims. Such claims, even if lacking merit, could result in the expenditure of significant financial and managerial resources.  The Company is not aware of any legal proceedings or claims that it believes will have, individually or in the aggregate, a material effect on the Company, its financial condition, results of operations or cash flows.

v3.19.3.a.u2
UNAUDITED QUARTERLY RESULTS OF OPERATIONS
12 Months Ended
Dec. 31, 2019
UNAUDITED QUARTERLY RESULTS OF OPERATIONS  
UNAUDITED QUARTERLY RESULTS OF OPERATIONS

18 - UNAUDITED QUARTERLY RESULTS OF OPERATIONS

 

In the opinion of the Company’s management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation have been included on a quarterly basis. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

 

Quarter Ended (2)

 

(In thousands, except share and per share amounts)

    

March 31, 

    

June 30, 

    

September 30, 

    

December 31, 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Voyage Revenues

 

$

93,464

 

$

83,550

 

$

103,776

 

$

108,705

 

Operating (loss) income

 

 

(882)

 

 

(27,309)

 

 

(7,772)

 

 

7,560

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

 

(7,801)

 

 

(34,476)

 

 

(14,591)

 

 

882

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) earnings per share - basic (1)

 

$

(0.19)

 

$

(0.83)

 

$

(0.35)

 

$

0.02

 

Net (loss) earnings per share - diluted (1)

 

$

(0.19)

 

$

(0.83)

 

$

(0.35)

 

$

0.02

 

Dividends declared per share

 

$

 —

 

$

 —

 

$

 —

 

$

0.50

 

Weighted average common shares outstanding - basic

 

 

41,726,106

 

 

41,742,301

 

 

41,749,200

 

 

41,832,942

 

Weighted average common shares outstanding - diluted

 

 

41,726,106

 

 

41,742,301

 

 

41,749,200

 

 

41,989,553

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

 

Quarter Ended (2)

 

(In thousands, except share and per share amounts)

 

March 31, 

 

June 30, 

 

September 30, 

 

December 31, 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Voyage Revenues

 

$

76,916

 

$

86,157

 

$

92,263

 

$

112,185

 

Operating (loss) income

 

 

(48,398)

 

 

10,851

 

 

12,089

 

 

25,972

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

 

(55,813)

 

 

(1,120)

 

 

5,708

 

 

18,283

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) earnings per share - basic (1)

 

$

(1.61)

 

$

(0.03)

 

$

0.14

 

$

0.44

 

Net (loss) earnings per share - diluted (1)

 

$

(1.61)

 

$

(0.03)

 

$

0.14

 

$

0.44

 

Weighted average common shares outstanding - basic

 

 

34,577,990

 

 

35,516,058

 

 

41,618,187

 

 

41,704,296

 

Weighted average common shares outstanding - diluted

 

 

34,577,990

 

 

35,516,058

 

 

41,821,008

 

 

41,792,956

 


(1)

Amounts may not total to annual loss because each quarter and year are calculated separately based on basic and diluted weighted-average common shares outstanding during that period.

 

(2)

Amounts may not total to annual amounts for the years ended December 31, 2019 and 2018 as reported in the Consolidated Statements of Operations due to rounding.

v3.19.3.a.u2
SUBSEQUENT EVENTS
12 Months Ended
Dec. 31, 2019
SUBSEQUENT EVENTS  
SUBSEQUENT EVENTS

 19 - SUBSEQUENT EVENTS

 

On February 24, 2020, the Board of Directors determined to dispose of the Company’s ten Handysize vessels; the Baltic Hare, the Baltic Fox, the Baltic Wind, the Baltic Cove, the Baltic Breeze, the Genco Ocean, the Genco Bay, the Genco Avra, the Genco Mare and the Genco Spirit, at times and on terms to be determined in the future.  Given this decision, and that the estimated future undiscounted cash flows for each of these older vessels did not exceed the net book value for each vessel, we have adjusted the values of these older vessels to their respective fair market values during the first quarter of 2020 which will result in an impairment loss.  

 

On February 25, 2020, the Company announced a regular quarterly dividend of $0.175 per share to be paid on or about March 16, 2020, to shareholders of record as of March 6, 2020.  The aggregate amount of the dividend is expected to be approximately $7,400, which the Company anticipates will be funded from cash on hand at the time the payment is to be made.

 

On February 25, 2020, the Company’s Board of Directors awarded grants of 173,749 RSUs and options to purchase 344,568 shares of the Company’s stock at an exercise price of $7.06 to certain individuals under the 2015 Plan.  The awards generally vest ratably in one-third increments on the first three anniversaries of February 25, 2020.

 

On February 3, 2020, the Company entered into an agreement to sell the Genco Charger, a 2005-built Handysize vessel, to a third party for $5,150 less a 1.0% commission payable to a third party.  The sale of the Genco Charger was completed on February 24, 2020.  Refer to Note 2 — Summary of Significant Accounting Policies regarding the impairment recorded for this vessel during the year ended December 31, 2019.  This vessel served as collateral under the $495 Million Credit Facility; therefore, $3,471 of the net proceeds received from the sale will remain classified as restricted cash for 180 days following the sale date.  The amount can be used towards a loan prepayment under the facility or for the financing of a replacement vessel or vessels meeting certain requirements and added as collateral under the facility.  If such a replacement vessel is not added as collateral within such 180 day period, the Company will be required to use the proceeds as a loan prepayment. 

 

v3.19.3.a.u2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
12 Months Ended
Dec. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  
Principles of consolidation

Principles of consolidation

 

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) which includes the accounts of GS&T and its direct and indirect wholly-owned subsidiaries.  All intercompany accounts and transactions have been eliminated in consolidation.

Business geographics

Business geographics

 

The Company’s vessels regularly move between countries in international waters, over hundreds of trade routes and, as a result, the disclosure of geographic information is impracticable.

Vessel acquisitions

Vessel acquisitions

 

When the Company enters into an acquisition transaction, it determines whether the acquisition transaction was the purchase of an asset or a business based on the facts and circumstances of the transaction.  As is customary in the shipping industry, the purchase of a vessel is normally treated as a purchase of an asset as the historical operating data for the vessel is not reviewed nor is it material to the Company’s decision to make such acquisition.

 

When a vessel is acquired with an existing time charter, the Company allocates the purchase price to the vessel and the time charter based on, among other things, vessel market valuations and the present value (using an interest rate which reflects the risks associated with the acquired charters) of the difference between (i) the contractual amounts to be paid pursuant to the charter terms and (ii) management’s estimate of the fair market charter rate, measured over a period equal to the remaining term of the charter.  The capitalized above-market (assets) and below-market (liabilities) charters are amortized as a reduction or increase, respectively, to voyage revenues over the remaining term of the charter.

Segment reporting

Segment reporting

 

The Company reports financial information and evaluates its operations by voyage revenues and not by the length of ship employment for its customers, i.e., spot or time charters.  Each of the Company’s vessels serve the same type of customer, have similar operation and maintenance requirements, operate in the same regulatory environment, and are subject to similar economic characteristics. Based on this, the Company has determined that it operates in one reportable segment, the ocean transportation of drybulk cargoes worldwide through the ownership and operation of drybulk carrier vessels.

Revenue recognition

Revenue recognition

 

Since the Company’s inception, revenues have been generated from time charter agreements, spot market voyage charters, pool agreements and spot market-related time charters.  Voyage revenues also include the sale of bunkers consumed during short-term time charters pursuant to the terms of the time charter agreement.

 

Time charters

 

A time charter involves placing a vessel at the charterer’s disposal for a set period of time during which the charterer may use the vessel in return for the payment by the charterer of a specified daily hire rate, including any ballast bonus payments received pursuant to the time charter agreement.  Spot market-related time charters are the same as other time charter agreements, except the time charter rates are variable and are based on a percentage of the average daily rates as published by the Baltic Dry Index (“BDI”). 

 

The Company records time charter revenues, including spot market-related time charters, over the term of the charter as service is provided.  Revenues are recognized on a straight-line basis as the average revenue over the term of the respective time charter agreement for which the performance obligations are satisfied beginning when the vessel is delivered to the charterer until it is redelivered back to the Company.  The Company records spot market-related time charter revenues over the term of the charter as service is provided based on the rate determined based on the BDI for each respective billing period.  As such, the revenue earned by the Company’s vessels that are on spot market-related time charters is subject to fluctuations of the spot market.  Time charter contracts, including spot market-related time charters, are considered operating leases and therefore do not fall under the scope of ASC 606 (as defined under “Recent accounting pronouncements” below) because (i) the vessel is an identifiable asset; (ii) the Company does not have substantive substitution rights; and (iii) the charterer has the right to control the use of the vessel during the term of the contract and derives economic benefit from such use. 

 

The Company has identified that time charter agreements, including fixed rate time charters and spot market-related time charters, contain a lease in accordance with ASC 842 (as defined under “Recent accounting pronouncements” below).  Refer to Note 12 — Voyage Revenue for further discussion.

 

During the year ended December 31, 2017, six of the Company’s vessels were chartered under spot-market related time charters that included a profit-sharing element, the Genco Commodus, Baltic Lion, Genco London, Genco Maximus, Baltic Wasp and Baltic Wolf.  These time charters all ended during the year ended December 31, 2017.  Under these charter agreements, the rate for the spot market-related time charter was linked to a floor of $3 with a 50% index-based profit sharing component. During the years ended December 31, 2019 and 2018, there were no time charters with profit-sharing elements.

 

Spot market voyage charters

 

In a spot market voyage charter contract, the charterer hires the vessel to transport a specific agreed-upon cargo for a single voyage, which may contain multiple load ports and discharge ports. The consideration in such a contract is determined on the basis of a freight rate per metric ton of cargo carried or occasionally on a lump sum basis. The charter party generally has a minimum amount of cargo. The charterer is liable for any short loading of cargo or "dead" freight. The contract generally has a "demurrage" or "despatch" clause. As per this clause, the charterer reimburses the Company for any potential delays exceeding the allowed laytime as per the charter party clause at the ports visited which is recorded as demurrage revenue. Conversely, the charterer is given credit if the loading/discharging activities happen within the allowed laytime known as despatch resulting in a reduction in revenue. The voyage contracts generally have variable consideration in the form of demurrage or despatch. The amount of revenue earned as demurrage or despatch paid by the Company for the years ended December 31, 2019, 2018 and 2017 is not material.

 

Pursuant to the new revenue recognition guidance as disclosed in Note 12 — Voyage Revenue, which was adopted during the first quarter of 2018, revenue for spot market voyage charters is now recognized ratably over the total transit time of each voyage, which commences at the time the vessel arrives at the loading port and ends at the time the discharge of cargo is completed at the discharge port.  Prior to the adoption of the new guidance, revenue for spot market voyage charters was recognized ratably over the total transit time of the voyage, which previously commenced the latter of when the vessel departed from its last discharge port and when an agreement was entered into with the charterered, and ended at the time discharge of cargo was completed at the discharge port.

 

Vessel Pools

 

At December 31, 2019 and 2018, the Company did not have any of its vessels in vessel pools. Under pool arrangements, the vessels operate under a time charter agreement whereby the cost of bunkers and port expenses are borne by the pool and operating costs including crews, maintenance and insurance are typically paid by the owner of the vessel.  Since the members of the pool share in the revenue less voyage expenses generated by the entire group of vessels in the pool, and the pool operates in the spot market, the revenue earned by these vessels is subject to the fluctuations of the spot market.  The Company recognizes revenue from these pool arrangements based on its portion of the net distributions reported by the relevant pool, which represents the net voyage revenue of the pool after voyage expenses and pool manager fees.

Voyage expense recognition

Voyage expense recognition

 

In time charters, spot market-related time charters and pool agreements, operating costs including crews, maintenance and insurance are typically paid by the owner of the vessel and specified voyage costs such as fuel and port charges are paid by the charterer. These expenses are borne by the Company during spot market voyage charters.  As such, there are significantly higher voyage expenses for spot market voyage charters as compared to time charters, spot market-related time charters and pool agreements. There are certain other non-specified voyage expenses, such as commissions, which are typically borne by the Company. At the inception of a time charter, the Company records the difference between the cost of bunker fuel delivered by the terminating charterer and the bunker fuel sold to the new charterer as a gain or loss within voyage expenses. Additionally, the Company records lower of cost and net realizable value adjustments to re-value the bunker fuel on a quarterly basis for certain time charter agreements where the inventory is subject to gains and losses.  These differences in bunkers, including any lower of cost and net realizable value adjustments, resulted in a net (loss) gain of ($829),  $3,000 and $2,021 during the years ended December 31, 2019, 2018 and 2017, respectively. Additionally, voyage expenses include the cost of bunkers consumed during short-term time charters pursuant to the terms of the time charter agreement.

Loss on debt extinguishment

Loss on debt extinguishment

 

During the year ended December 31, 2018, the Company recorded $4,533 related to the loss on the extinguishment of debt in accordance with Accounting Standards Codification (“ASC”) 470-50 — “Debt – Modifications and Extinguishments” (“ASC 470-50”). This loss was recognized as a result of the refinancing of the $400 Million Credit Facility, the $98 Million Credit Facility and the 2014 Term Loan Facilities with the $495 Million Credit Facility on June 5, 2018 as described in Note 7 — Debt.

Due from charterers, net

Due from charterers, net

 

Due from charterers, net includes accounts receivable from charters, including receivables for spot market voyages, net of the provision for doubtful accounts.  At each balance sheet date, the Company records the provision based on a review of all outstanding charter receivables.  Included in the standard time charter contracts with the Company’s customers are certain performance parameters which, if not met, can result in customer claims.  As of December 31, 2019 and 2018, the Company had a reserve of $1,064 and $669, respectively, against the due from charterers balance and an additional accrual of $577 and $345, respectively, in deferred revenue, each of which is primarily associated with estimated customer claims against the Company including vessel performance issues under time charter agreements.

 

Revenue is based on contracted charterparties.  However, there is always the possibility of dispute over terms and payment of hires and freights.  In particular, disagreements may arise concerning the responsibility of lost time and revenue.  Accordingly, the Company periodically assesses the recoverability of amounts outstanding and estimates a provision if there is a possibility of non-recoverability.  The Company believes its provisions to be reasonable based on information available.

Inventories

Inventories

 

Inventories consist of consumable bunkers and lubricants.  For bunkers that are subject to gains and losses as a result of certain time charter agreements, these inventories are stated at the lower of cost and net realizable value, and all others are stated at cost. Cost is determined by the first in, first out method.

Vessel operating expenses

Vessel operating expenses

 

Vessel operating expenses include crew wages and related costs, the cost of insurance, expenses relating to repairs and maintenance, the cost of spares and consumable stores, and other miscellaneous expenses.  Vessel operating expenses are recognized when incurred.

Charter hire expenses

Charter hire expenses

 

During the second quarter of 2018, the Company began chartering-in third party vessels.  The costs to charter-in these vessels, which primarily include the daily charter hire rate net of commissions or net freight revenue, are recorded as Charter hire expenses.  The Company recorded $16,179,  $1,534 and $0 of charter hire expenses during the years ended December 31, 2019, 2018 and 2017, respectively.

Vessels, net

Vessels, net

 

Vessels, net is stated at cost less accumulated depreciation. Included in vessel costs are acquisition costs directly attributable to the acquisition of a vessel and expenditures made to prepare the vessel for its initial voyage. The Company also capitalizes interest costs for a vessel under construction as a cost that is directly attributable to the acquisition of a vessel. Vessels are depreciated on a straight-line basis over their estimated useful lives, determined to be 25 years from the date of initial delivery from the shipyard. Depreciation expense for vessels for the years ended December 31, 2019, 2018 and 2017 was $66,351,  $64,012 and $66,514, respectively. 

 

Depreciation expense is calculated based on cost less the estimated residual scrap value. The costs of significant replacements, renewals and betterments are capitalized and depreciated over the shorter of the vessel’s remaining estimated useful life or the estimated life of the renewal or betterment. Undepreciated cost of any asset component being replaced that was acquired after the initial vessel purchase is written off as a component of vessel operating expense. Expenditures for routine maintenance and repairs are expensed as incurred. Scrap value is estimated by the Company by taking the estimated scrap value of $310 per lightweight ton (“lwt”) times the weight of the vessel noted in lwt.

Vessels held for sale

Vessels held for sale

On September 25, 2019, the Company entered into an agreement to sell the Genco Thunder, and the relevant vessel assets have been classified as held for sale in the Consolidated Balance Sheet as of December 31, 2019.  The vessel is expected to be sold during the first quarter of 2020.

 

On November 23, 2018, the Company reached an agreement to sell the Genco Vigour, and the relevant vessel assets have been classified as held for sale in the Consolidated Balance Sheet as of December 31, 2018. This vessel was sold on January 28, 2019.  Refer to Note 4 — Vessel Acquisitions and Dispositions for additional information.

Fixed assets, net

Fixed assets, net

 

Fixed assets, net is stated at cost less accumulated depreciation and amortization.  Depreciation and amortization are based on a straight line basis over the estimated useful life of the specific asset placed in service.  The following table is used in determining the typical estimated useful lives:

 

 

 

 

 

 

 

Description

    

Useful lives

 

 

 

 

 

 

Leasehold improvements

 

Lesser of the estimated useful life of the asset or life of the lease

Furniture, fixtures & other equipment

 

5 years

Vessel equipment

 

2-15 years

Computer equipment

 

3 years

 

Depreciation and amortization expense for fixed assets for the years ended December 31, 2019, 2018 and 2017 was $989, $335 and $274, respectively. 

Deferred drydocking costs

Deferred drydocking costs

 

The Company’s vessels are required to be drydocked approximately every 30 to 60 months for major repairs and maintenance that cannot be performed while the vessels are operating.  The Company defers the costs associated with the drydockings as they occur and amortizes these costs on a straight-line basis over the period between drydockings.  Costs deferred as part of a vessel’s drydocking include actual costs incurred at the drydocking yard; cost of travel, lodging and subsistence of personnel sent to the drydocking site to supervise; and the cost of hiring a third party to oversee the drydocking.  If the vessel is drydocked earlier than originally anticipated, any remaining deferred drydock costs that have not been amortized are expensed at the end of the next drydock.

 

Amortization expense for drydocking for the years ended December 31, 2019, 2018 and 2017 was $5,484,  $4,629 and $4,988, respectively, and is included in Depreciation and amortization expense in the Consolidated Statements of Operations.  All other costs incurred during drydocking are expensed as incurred.

Impairment of vessel assets

Impairment of long-lived assets

 

During the years ended December 31, 2019, 2018 and 2017 the Company recorded $27,393,  $56,586 and $21,993, respectively, related to the impairment of vessel assets in accordance with ASC 360 — “Property, Plant and Equipment” (“ASC 360”).  ASC 360 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts.  If indicators of impairment are present, the Company performs an analysis of the anticipated undiscounted future net cash flows to be derived from the related long-lived assets. 

 

On February 3, 2020, the Company entered into an agreement to sell the Genco Charger, a 2005-built Handysize vessel, to a third party for $5,150 less a 1.0% commission payable to a third party.   As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessel as of December 31, 2019, the vessel value for the Genco Charger was adjusted to its net sales price of $5,099 as of December 31, 2019. This resulted in an impairment loss of $1,314 during the year ended December 31, 2019.  Refer to Note 19 — Subsequent Events for further detail regarding the sale.

 

On November 4, 2019, the Company entered into an agreement to sell the Genco Raptor, a 2007-built Panamax vessel, to a third party for $10,200 less a 2.0% commission payable to a third party.  As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessel as of September 30, 2019, the vessel value for the Genco Raptor was adjusted to its net sales price of $9,996 as of September 30, 2019. This resulted in an impairment loss of $5,812 during the year ended December 31, 2019.  Refer to Note 4 — Vessel Acquisitions and Dispositions for further detail regarding the sale.

 

On September 25, 2019, the Company entered into an agreement to sell the Genco Thunder, a 2007-built Panamax vessel, for $10,400 less a 2.0% broker commission payable to a third party.  Therefore, the vessel value for the Genco Thunder was adjusted to its net sales price of $10,192 as of September 30, 2019.  This resulted in an impairment loss of $5,749 during the year ended December 31, 2019.  Refer to Note 4 — Vessel Acquisitions and Dispositions for further detail regarding the sale.

 

 On September 20, 2019, the Company entered into an agreement to sell the Genco Champion, a 2006-built Handysize vessel, for $6,600 less a 3.0% broker commission payable to a third party.  Therefore, the vessel value for the Genco Champion was adjusted to its net sales price of $6,402 as of September 30, 2019.  This resulted in an impairment loss of $621 during the year ended December 31, 2019.  Refer to Note 4 — Vessel Acquisitions and Dispositions for further detail regarding the sale. 

 

On August 2, 2019, the Company entered into an agreement to sell the Genco Challenger, a 2003-built Handysize vessel, for $5,250 less a 2.0% broker commission payable to a third party.  As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessel as of June 30, 2019, the vessel value for the Genco Challenger was adjusted to its net sales price of $5,145 as of June 30, 2019.  This resulted in an impairment loss of $4,401 during the year ended December 31, 2019.  Refer to Note 4 — Vessel Acquisitions and Dispositions for further detail regarding the sale.

 

At June 30, 2019, the Company determined that the expected estimated future undiscounted cash flows for the Genco Champion, a 2006-built Handysize vessel, and the Genco Charger, a 2005-built Handysize vessel, did not exceed the net book value of these vessels as of June 30, 2019.  As such, the Company adjusted the value of these vessels to their respective fair market values as of June 30, 2019.  This resulted in an impairment loss of $9,496 during the year ended December 31, 2019. 

 

On July 24, 2018, the Company entered into an agreement to sell the Genco Surprise, a 1998-built Panamax vessel, for $5,300 less a 3.0% broker commission payable to a third party.  As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessel as of June 30, 2018, the vessel value for the Genco Surprise was adjusted to its net sales price of $5,141 as of June 30, 2018.  This resulted in an impairment loss of $184 during the year ended December 31, 2018.  Refer to Note 4 — Vessel Acquisitions and Dispositions for further detail regarding the sale. 

 

On February 27, 2018, the Board of Directors determined to dispose of the Company’s following nine vessels: the Genco Cavalier, the Genco Loire, the Genco Lorraine, the Genco Muse, the Genco Normandy, the Baltic Cougar, the Baltic Jaguar, the Baltic Leopard and the Baltic Panther, at times and on terms to be determined in the future.  Given this decision, and that the estimated future undiscounted cash flows for each of these older vessels did not exceed the net book value for each vessel, we adjusted the values of these older vessels to their respective fair market values during the year ended December 31, 2018.  This resulted in an impairment loss of $56,402 during the year ended December 31, 2018.

 

On August 4, 2017, the Board of Directors determined to dispose of the Company’s vessels built in 1999, namely the Genco Beauty, the Genco Explorer, the Genco Knight, the Genco Progress and the Genco Vigour, at times and on terms to be determined in the future.  Given this decision, and that the estimated future undiscounted cash flows for each of these older vessels did not exceed the net book value for each vessel, the Company has adjusted the values of these older vessels to their respective fair market values during the year ended December 31, 2017.  This resulted in an impairment loss of $18,654 during the year ended December 31, 2017. Refer to Note 4 — Vessel Acquisitions and Dispositions for further detail regarding the sale of these vessels.

 

At June 30, 2017, the Company determined that the sum of the estimated undiscounted future cash flows attributable to the Genco Surprise did not exceed the carrying value of the vessel at June 30, 2017 and reduced the carrying value of the Genco Surprise, a 1998-built Panamax vessel, to its fair market value as of June 30, 2017.  This resulted in an impairment loss of $3,339 during the year ended December 31, 2017.   

Loss (gain) on sale of vessels

Loss (gain) on sale of vessels

 

During the years ended December 31, 2019, 2018 and 2017, the Company recorded net (losses) gains of ($168),  $3,513 and $7,712, respectively, related to the sale of vessels.  The ($168) net loss recognized during the year ended December 31, 2019 related primarily to the sale of the Genco Challenger, Genco Champion and Genco Raptor which was largely offset by a net gain related to the sale of the Genco Vigour. The $3,513 net gain recognized during the year ended December 31, 2018 related primarily to the sale of the Genco Progress, the Genco Cavalier, the Genco Explorer, the Genco Muse, the Genco Beauty and the Genco Knight.  The $7,712 net gain recognized during the year ended December 31, 2017 related primarily to the sale of the Genco Wisdom, the Genco Reliance, the Genco Carrier, the Genco Success and the Genco Prosperity.  Refer to Note 4 — Vessel Acquisitions and Dispositions for further detail regarding the sale of these vessels.

Deferred financing costs

Deferred financing costs

 

Deferred financing costs, which are presented as a direct deduction within the outstanding debt balance in the Company’s Consolidated Balance Sheets, consist of fees, commissions and legal expenses associated with securing loan facilities and other debt offerings and amending existing loan facilities.  These costs are amortized over the life of the related debt and are included in Interest expense in the Consolidated Statement of Operations.

Cash and cash equivalents

Cash and cash equivalents

 

The Company considers highly liquid investments, such as money market funds and certificates of deposit with an original maturity of three months or less to be cash equivalents.

Restricted cash

Restricted Cash

 

Current and non-current restricted cash includes cash that is restricted pursuant to our credit facilities, refer to Note 7 — Debt.  The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same amounts shown in the Consolidated Statements of Cash Flows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 

 

December 31, 

 

December 31, 

 

December 31, 

 

 

    

2019

    

2018

 

2017

 

2016

 

Cash and cash equivalents

 

$

155,889

 

$

197,499

 

$

174,479

 

$

133,400

 

Restricted cash - current

 

 

6,045

 

 

4,947

 

 

7,234

 

 

8,242

 

Restricted cash - noncurrent

 

 

315

 

 

315

 

 

23,233

 

 

27,426

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash, cash equivalents and restricted cash

 

$

162,249

 

$

202,761

 

$

204,946

 

$

169,068

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States Gross Transportation Tax

United States Gross Transportation Tax 

 

Pursuant to Section 883 of the U.S. Internal Revenue Code of 1986 (as amended) (the “Code”), qualified income derived from the international operations of ships is excluded from gross income and exempt from U.S. federal income tax if a company engaged in the international operation of ships meets certain requirements (the “Section 883 exemption”).  Among other things, in order to qualify, the Company must be incorporated in a country that grants an equivalent exemption to U.S. corporations and must satisfy certain qualified ownership requirements.

 

The Company is incorporated in the Marshall Islands.  Pursuant to the income tax laws of the Marshall Islands, the Company is not subject to Marshall Islands income tax.  The Marshall Islands has been officially recognized by the Internal Revenue Service as a qualified foreign country that currently grants the requisite equivalent exemption from tax.  The Company is not taxable in any other jurisdiction, with the exception of Genco Management (USA) Limited, Genco Shipping Pte. Ltd. and Genco Shipping A/S, as noted in the “Income taxes” section below.

 

The Company will qualify for the Section 883 exemption if, among other things, (i) the Company’s stock is treated as primarily and regularly traded on an established securities market in the United States (the “publicly traded test”) or (ii) the Company satisfies the qualified shareholder test or (iii) the Company satisfies the controlled foreign corporation test (the “CFC test”).  Under applicable Treasury Regulations, the publicly traded test cannot be satisfied in any taxable year in which persons who actually or constructively own 5% or more of the Company’s stock (which the Company sometimes refers to as “5% shareholders”), together own 50% or more of the Company’s stock (by vote and value) for more than half the days in such year (which the Company sometimes refers to as the “five percent override rule”), unless an exception applies.  A foreign corporation satisfies the qualified shareholder test if more than 50 percent of the value of its outstanding shares is owned (or treated as owned by applying certain attribution rules) for at least half of the number of days in the foreign corporation's taxable year by one or more “qualified shareholders.”  A qualified shareholder includes a foreign corporation that, among other things, satisfies the publicly traded test.  A foreign corporation satisfies the CFC test if it is a “controlled foreign corporation” and one or more qualified U.S. persons own more than 50 percent of the total value of all the outstanding stock.

 

Based on the publicly traded requirement of the Section 883 regulations, the Company believes that it qualified for exemption from income tax on income derived from the international operations of vessels during the years ended December 31, 2019 and 2018.  However, based on the ownership and trading of the Company’s stock in 2017, the Company believes that it did not satisfy the publicly traded test, the qualified shareholder test or the CFC test, and therefore did not qualify for the Section 883 exemption in 2017.  In order to meet the publicly traded requirement, the Company’s stock must be treated as being primarily and regularly traded for more than half the days of any such year.  Under the Section 883 regulations, the Company’s qualification for the publicly traded requirement may be jeopardized if 5% shareholders own, in the aggregate, 50% or more of the Company’s common stock for more than half the days of the year.  Management believes that during the year ended December 31, 2017, the combined ownership of its 5% shareholders equaled 50% or more of its common stock for more than half the days of that year. Management believes that during the years ended December 31, 2019 and 2018, the combined ownership of its 5% shareholders did not equal 50% or more of its common stock for more than half the days of each of those years. 

 

If the Company does not qualify for the Section 883 exemption, the Company’s U.S. source shipping income, i.e., 50% of its gross shipping income attributable to transportation beginning or ending in the U.S. (but not both beginning and ending in the U.S.) is subject to a 4% tax without allowance for deductions (the “U.S. gross transportation tax”).

 

During the year ended December 31, 2017, the Company recorded estimated U.S. gross transportation tax of $365 which was recorded in Voyages expenses in the Consolidated Statements of Operations.  During the years ended December 31, 2019 and 2018, the Company qualified for Section 883 exemption and, therefore, did not record any U.S. gross transportation tax. 

Income taxes

Income taxes

 

To the extent the Company’s U.S. source shipping income, or other U.S. source income, is considered to be effectively connected income, as described below, any such income, net of applicable deductions, would be subject to the U.S. federal corporate income tax, imposed at a 21% rate effective 2018. In addition, the Company may be subject to a 30% "branch profits" tax on such income, and on certain interest paid or deemed paid attributable to the conduct of such trade or business. Shipping income is generally sourced 100% to the United States if attributable to transportation exclusively between United States ports (the Company is prohibited from conducting such voyages), 50% to the United States if attributable to transportation that begins or ends, but does not both begin and end, in the United States (as described in “United States Gross Transportation Tax” above) and otherwise 0% to the United States.

 

The Company’s U.S. source shipping income would be considered effectively connected income only if:

 

·

the Company has, or is considered to have, a fixed place of business in the U.S. involved in the earning of U.S. source shipping income; and

 

·

substantially all of the Company’s U.S. source shipping income is attributable to regularly scheduled transportation, such as the operation of a vessel that follows a published schedule with repeated sailings at regular intervals between the same points for voyages that begin or end in the U.S.

 

The Company does not intend to have, or permit circumstances that would result in having, any vessel sailing to

or from the U.S. on a regularly scheduled basis. Based on the current shipping operations of the Company and the

Company’s expected future shipping operations and other activities, the Company believes that none of its U.S. source

shipping income will constitute effectively connected income. However, the Company may from time to time generate

non-shipping income that may be treated as effectively connected income.

 

The Company established Genco Shipping Pte. Ltd. (“GSPL”), which is based in Singapore, on September 8, 2017.  GSPL applied for and was awarded the Maritime Sector Incentive – Approved International Shipping Enterprise (“MSI-AIS”) status under Section 13F of the Singapore Income Tax Act (“SITA”) by the Maritime and Port Authority of Singapore.  The award is for an initial period of 10 years, commencing on August 15, 2018, and is subject to a review of performance at the end of the initial five year period.  The MSI-ASI status provides for a tax exemption on income derived by GSPL from qualifying shipping operations under Section 13F of the SITA.  Income from non-qualifying activities is taxable at the prevailing Singapore Corporate income tax rate (currently 17%).  During the years ended December 31, 2019, 2018 and 2017, there was no income tax recorded by GSPL.

 

During 2018, the Company established Genco Shipping A/S, which is a Danish-incorporated corporation which is based in Copenhagen and considered to be a resident for tax purposes in Denmark.  Genco Shipping A/S was subject to corporate taxes in Denmark a rate of 22% during 2018 and 2019.  During the years ended December 31, 2019 and 2018, Genco Shipping A/S recorded $241 and $79, respectively, of income tax in Other income (expense) in the Consolidated Statements of Operations.

Deferred revenue

Deferred revenue

 

Deferred revenue primarily relates to cash received from charterers prior to it being earned.  These amounts are recognized as income when earned.  Additionally, deferred revenue includes estimated customer claims mainly due to time charter performance issues.  Refer to “Revenue recognition” above for description of the Company’s revenue recognition policy.

Nonvested stock awards

Nonvested stock awards

 

The Company follows ASC Subtopic 718-10, “Compensation — Stock Compensation” (“ASC 718-10”), for nonvested stock issued under its equity incentive plans.  Stock-based compensation costs from nonvested stock have been classified as a component of additional paid-in capital in the Consolidated Statements of Equity.

Accounting estimates

Accounting estimates

 

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Significant estimates include vessel valuations, the valuation of amounts due from charterers, performance claims, residual value of vessels, useful life of vessels and the fair value of derivative instruments, if any.  Actual results could differ from those estimates.

Concentration of credit risk

Concentration of credit risk

 

Financial instruments that potentially subject the Company to concentrations of credit risk are amounts due from charterers and cash and cash equivalents.  With respect to amounts due from charterers, the Company attempts to limit its credit risk by performing ongoing credit evaluations and, when deemed necessary, requires letters of credit, guarantees or collateral.  The Company earned all of its voyage revenues from 170,  182 and 102 customers during the years ended December 31, 2019, 2018 and 2017. 

 

For the years ended December 31, 2019 and 2018, there were no customers that individually accounted for more than 10% of voyage revenues. For the year ended December 31, 2017, there were two customers that individually accounted for more than 10% of voyage revenues; Swissmarine Services S.A., including its subsidiaries (“Swissmarine”) and Clipper Group, including Clipper Bulk Shipping, the Clipper Logger Pool and the Clipper Sapphire Pool (“Clipper”), which represented 15.09% and 10.98% of voyage revenues, respectively.  

 

At December 31, 2019 and 2018, the Company maintains all of its cash and cash equivalents with four financial institutions.  None of the Company’s cash and cash equivalent balance is covered by insurance in the event of default by these financial institutions.

Fair value of financial instruments

Fair value of financial instruments

 

The estimated fair values of the Company’s financial instruments, such as amounts due to / due from charterers, accounts payable and long-term debt, approximate their individual carrying amounts as of December 31, 2019 and 2018 due to their short-term maturity or the variable-rate nature of the respective borrowings under the credit facilities.  See Note 8 — Fair Value of Financial Instruments for additional disclosure on the fair value of long-term debt.

Recent accounting pronouncements

Recent accounting pronouncements

 

In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-13, “Disclosure Framework: Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”),” which change the disclosure requirements for fair value measurements by removing, adding, and modifying certain disclosures. This ASU is effective for fiscal years beginning after December 15, 2019, and for interim periods within that year.  Early adoption is permitted for any eliminated or modified disclosures upon issuance of this ASU.  The Company has evaluated the impact of the adoption of ASU 2018-03 and has determined that there is no effect on its consolidated financial statements.

 

In May 2017, the FASB issued ASU No. 2017-09, “Compensation – Stock Compensation (Topic 718), Scope of Modification Accounting” (“ASU 2017-09”).  This ASU provides guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting.  This ASU is effective for fiscal years beginning after December 15, 2017, and for interim periods within that year and early adoption is permitted.  ASU 2017-09 must be applied prospectively to an award modified on or after the adoption date.  The Company adopted ASU 2017-09 during the first quarter of 2018 and there was no effect on its consolidated financial statements.

 

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230):  Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”).  This ASU adds or clarifies the guidance in ASC 230 – Statement of Cash Flows regarding the classification of certain cash receipts and payments in the statement of cash flows.  This ASU is effective for fiscal years beginning after December 15, 2017, and for interim periods within those years and early adoption is permitted.  This ASU shall be applied retrospectively to all periods presented, but may be applied prospectively from the earliest date practicable if retrospective application would be impracticable.  The Company adopted ASU 2016-15 during the first quarter of 2018.  The retrospective application of ASU 2016-15 resulted in insurance proceeds for protection and indemnity claims and loss of hire claims to be separately disclosed in the cash flows from operating activities and resulted in insurance proceeds for hull and machinery claims to be separately disclosed in the cash flows from investing activities.  These amounts were previously recorded in the cash flows from operating activities as the change in prepaid expenses and other current assets.  Additionally, as part of ASU 2016-15, any cash payments for debt prepayment or debt extinguishment costs (including third party costs, premiums paid and other fees paid to lenders) must be classified as cash outflows for financing activities.  Lastly, for any debt instruments that contain interest payable in-kind, any cash payments attributable to the payment of in-kind interest will be classified as cash outflows for operating activities.  There were no cash payments for in-kind interest during the years ended December 31, 2019 and 2017.  Refer to the Consolidated Statements of Cash Flows.

 

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASC 842”), which replaced the existing guidance in ASC 840 – Leases (“ASC 840”).  This ASU requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases.  Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability for leases with lease terms of more than twelve months. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset and for operating leases, the lessee would recognize a straight-line total lease expense.  Accounting by lessors will remain largely unchanged from current U.S. GAAP.  The requirements of this standard include an increase in required disclosures.  This ASU was effective for fiscal years beginning after December 15, 2018, and for interim periods within those fiscal years.  Lessees and lessors were required to apply the new standard at the beginning of the earliest period presented in the financial statements in which they first apply the new guidance, using a modified retrospective transition method. In July 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements” which provided clarifications and improvements to ASC 842, including allowing entities to elect an additional transition method with which to adopt ASC 842.  The approved transition method enables entities to apply the transition requirements at the effective date of ASC 842 (rather than at the beginning of the earliest comparative period presented as currently required) with the effect of the initial application of ASC 842 recognized as a cumulative-effect adjustment to retained earnings in the period of adoption.  As a result, an entity’s reporting for the comparative periods presented in the year of adoption would continue to be in accordance with ASC 840, including the disclosure requirements of ASC 840.   The Company adopted ASC 842 on January 1, 2019 using this transition method. 

 

The new guidance provides a number of optional practical expedients in the transition.  The Company had elected the package of practical expedients, which among other things, allows the carryforward of the historical lease classification. Further, upon implementation of the new guidance, the Company has elected the practical expedients to combine lease and non-lease components and to not recognize right-of-use assets and lease liabilities for short-term leases.  Upon adoption of ASC 842 on January 1, 2019, the Company recorded a right-of-use asset of $9,710  and an operating lease liability of $13,095 in the Consolidated Balance Sheets.  Refer to Note 13 — Leases for further information regarding our operating lease agreement and the effect of the adoption of ASC 842 from a lessor perspective.  

 

Pursuant to ASC 842, the Company has identified revenue from its time charter agreements as lease revenue.  Refer to Note 12 — Voyage revenue for additional information regarding the adoption of ASC 842 from a lessor perspective. 

 

In January 2016, the FASB issued ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). This ASU requires that equity investments be measured at fair value with changes in fair value recognized in net income (loss). ASU 2016-01 is effective for annual periods beginning after December 15, 2017, and interim periods within those years. The Company adopted ASU 2016-01 during the first quarter of 2018 and there was no impact on the Company’s consolidated financial statements as the Company currently does not have any equity investments.

 

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09” or “ASC 606”), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle is that a company should recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASC 606 defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2017, and interim periods therein, and shall be applied either retrospectively to each period presented or as a cumulative effect adjustment as of the date of adoption (the “modified retrospective transition method”). The Company adopted ASC 606 during the first quarter of 2018 using the modified retrospective transition method applied to all contracts and determined that the only impact was to spot market voyage charter contracts that were not completed as of January 1, 2018. Upon adoption, the Company recognized the cumulative effect of adopting this guidance as an adjustment to its opening balance of retained deficit as of January 1, 2018. Prior periods were not retrospectively adjusted. The adoption of ASC 606 did not have a financial impact on the recognition of revenue generated from time charter agreements, spot market-related time charters and pool agreements. Refer to Note 12 — Voyage Revenue for further discussion of the financial impact on the Company’s consolidated financial statements.

v3.19.3.a.u2
GENERAL INFORMATION (Tables)
12 Months Ended
Dec. 31, 2019
GENERAL INFORMATION  
Schedule of wholly owned ship-owning subsidiaries

Below is the list of Company’s wholly owned ship-owning subsidiaries as of December 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

Wholly Owned Subsidiaries

    

Vessel Acquired

    

Dwt

    

Delivery Date

    

Year Built

 

 

 

 

 

 

 

 

 

 

 

Genco Augustus Limited

 

Genco Augustus

 

180,151

 

8/17/07

 

2007

 

Genco Tiberius Limited

 

Genco Tiberius

 

175,874

 

8/28/07

 

2007

 

Genco London Limited

 

Genco London

 

177,833

 

9/28/07

 

2007

 

Genco Titus Limited

 

Genco Titus

 

177,729

 

11/15/07

 

2007

 

Genco Charger Limited

 

Genco Charger

 

28,398

 

12/14/07

(3)

2005

 

Genco Warrior Limited

 

Genco Warrior

 

55,435

 

12/17/07

 

2005

 

Genco Predator Limited

 

Genco Predator

 

55,407

 

12/20/07

 

2005

 

Genco Hunter Limited

 

Genco Hunter

 

58,729

 

12/20/07

 

2007

 

Genco Constantine Limited

 

Genco Constantine

 

180,183

 

2/21/08

 

2008

 

Genco Thunder LLC

 

Genco Thunder

 

76,588

 

9/25/08

 

2007

 

Genco Hadrian Limited

 

Genco Hadrian

 

169,025

 

12/29/08

 

2008

 

Genco Commodus Limited

 

Genco Commodus

 

169,098

 

7/22/09

 

2009

 

Genco Maximus Limited

 

Genco Maximus

 

169,025

 

9/18/09

 

2009

 

Genco Claudius Limited

 

Genco Claudius

 

169,001

 

12/30/09

 

2010

 

Genco Bay Limited

 

Genco Bay

 

34,296

 

8/24/10

 

2010

 

Genco Ocean Limited

 

Genco Ocean

 

34,409

 

7/26/10

 

2010

 

Genco Avra Limited

 

Genco Avra

 

34,391

 

5/12/11

 

2011

 

Genco Mare Limited

 

Genco Mare

 

34,428

 

7/20/11

 

2011

 

Genco Spirit Limited

 

Genco Spirit

 

34,432

 

11/10/11

 

2011

 

Genco Aquitaine Limited

 

Genco Aquitaine

 

57,981

 

8/18/10

 

2009

 

Genco Ardennes Limited

 

Genco Ardennes

 

58,018

 

8/31/10

 

2009

 

Genco Auvergne Limited

 

Genco Auvergne

 

58,020

 

8/16/10

 

2009

 

Genco Bourgogne Limited

 

Genco Bourgogne

 

58,018

 

8/24/10

 

2010

 

Genco Brittany Limited

 

Genco Brittany

 

58,018

 

9/23/10

 

2010

 

Genco Languedoc Limited

 

Genco Languedoc

 

58,018

 

9/29/10

 

2010

 

Genco Loire Limited

 

Genco Loire

 

53,430

 

8/4/10

 

2009

 

Genco Lorraine Limited

 

Genco Lorraine

 

53,417

 

7/29/10

 

2009

 

Genco Normandy Limited

 

Genco Normandy

 

53,596

 

8/10/10

 

2007

 

Genco Picardy Limited

 

Genco Picardy

 

55,257

 

8/16/10

 

2005

 

Genco Provence Limited

 

Genco Provence

 

55,317

 

8/23/10

 

2004

 

Genco Pyrenees Limited

 

Genco Pyrenees

 

58,018

 

8/10/10

 

2010

 

Genco Rhone Limited

 

Genco Rhone

 

58,018

 

3/29/11

 

2011

 

Genco Weatherly Limited

 

Genco Weatherly

 

61,556

 

7/26/18

 

2014

 

Genco Columbia Limited

 

Genco Columbia

 

60,294

 

9/10/18

 

2016

 

Genco Endeavour Limited

 

Genco Endeavour

 

181,060

 

8/15/18

 

2015

 

Genco Resolute Limited

 

Genco Resolute

 

181,060

 

8/14/18

 

2015

 

Genco Defender Limited

 

Genco Defender

 

180,021

 

9/6/18

 

2016

 

Genco Liberty Limited

 

Genco Liberty

 

180,032

 

9/11/18

 

2016

 

Baltic Lion Limited

 

Baltic Lion

 

179,185

 

4/8/15

(1)

2012

 

Baltic Tiger Limited

 

Genco Tiger

 

179,185

 

4/8/15

(1)

2011

 

Baltic Leopard Limited

 

Baltic Leopard

 

53,446

 

4/8/10

(2)

2009

 

Baltic Panther Limited

 

Baltic Panther

 

53,350

 

4/29/10

(2)

2009

 

Baltic Cougar Limited

 

Baltic Cougar

 

53,432

 

5/28/10

(2)

2009

 

Baltic Jaguar Limited

 

Baltic Jaguar

 

53,473

 

5/14/10

(2)

2009

 

Baltic Bear Limited

 

Baltic Bear

 

177,717

 

5/14/10

(2)

2010

 

Baltic Wolf Limited

 

Baltic Wolf

 

177,752

 

10/14/10

(2)

2010

 

Baltic Wind Limited

 

Baltic Wind

 

34,408

 

8/4/10

(2)

2009

 

Baltic Cove Limited

 

Baltic Cove

 

34,403

 

8/23/10

(2)

2010

 

Baltic Breeze Limited

 

Baltic Breeze

 

34,386

 

10/12/10

(2)

2010

 

Baltic Fox Limited

 

Baltic Fox

 

31,883

 

9/6/13

(2)

2010

 

Baltic Hare Limited

 

Baltic Hare

 

31,887

 

9/5/13

(2)

2009

 

Baltic Hornet Limited

 

Baltic Hornet

 

63,574

 

10/29/14

(2)

2014

 

Baltic Wasp Limited

 

Baltic Wasp

 

63,389

 

1/2/15

(2)

2015

 

Baltic Scorpion Limited

 

Baltic Scorpion

 

63,462

 

8/6/15

 

2015

 

Baltic Mantis Limited

 

Baltic Mantis

 

63,470

 

10/9/15

 

2015

 


(1)

The delivery date for these vessels represents the date that the vessel was purchased from Baltic Trading.

(2)

The delivery date for these vessels represents the date that the vessel was delivered to Baltic Trading.

(3)

The Genco Charger was sold on February 24, 2020.  Refer to Note 19 — Subsequent Events

v3.19.3.a.u2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
12 Months Ended
Dec. 31, 2019
Summary of Significant Accounting Policies  
Schedule of restricted cash and cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 

 

December 31, 

 

December 31, 

 

December 31, 

 

 

    

2019

    

2018

 

2017

 

2016

 

Cash and cash equivalents

 

$

155,889

 

$

197,499

 

$

174,479

 

$

133,400

 

Restricted cash - current

 

 

6,045

 

 

4,947

 

 

7,234

 

 

8,242

 

Restricted cash - noncurrent

 

 

315

 

 

315

 

 

23,233

 

 

27,426

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash, cash equivalents and restricted cash

 

$

162,249

 

$

202,761

 

$

204,946

 

$

169,068

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated Useful Lives of Fixed Assets  
Summary of Significant Accounting Policies  
Schedule of estimated useful lives of fixed assets

 

 

 

 

 

 

Description

    

Useful lives

 

 

 

 

 

 

Leasehold improvements

 

Lesser of the estimated useful life of the asset or life of the lease

Furniture, fixtures & other equipment

 

5 years

Vessel equipment

 

2-15 years

Computer equipment

 

3 years

 

v3.19.3.a.u2
NET LOSS PER SHARE (Tables)
12 Months Ended
Dec. 31, 2019
NET LOSS PER SHARE  
Components of denominator for calculation of basic and diluted net (loss) earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended December 31,

 

 

 

 

2019

    

2018

  

2017

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding, basic:

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding, basic 

 

41,762,893

 

38,382,599

 

34,242,631

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding, diluted:

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding, basic 

 

41,762,893

 

38,382,599

 

34,242,631

 

 

 

 

 

 

 

 

 

 

 

Dilutive effect of warrants 

 

 —

 

 —

 

 —

 

 

 

 

 

 

 

 

 

 

 

Dilutive effect of stock options

 

 —

 

 —

 

 —

 

 

 

 

 

 

 

 

 

 

 

Dilutive effect of restricted stock awards 

 

 —

 

 —

 

 —

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding, diluted 

 

41,762,893

 

38,382,599

 

34,242,631

 

 

 

v3.19.3.a.u2
DEBT (Tables)
12 Months Ended
Dec. 31, 2019
Line of Credit Facility  
Schedule of components of Long-term debt

 

 

 

 

 

 

 

 

 

 

December 31, 

 

December 31, 

 

 

    

2019

    

2018

 

Principal amount 

 

$

495,824

 

$

551,420

 

Less:  Unamortized debt financing costs 

 

 

(13,094)

 

 

(16,272)

 

Less: Current portion 

 

 

(69,747)

 

 

(66,320)

 

 

 

 

 

 

 

 

 

Long-term debt, net

 

$

412,983

 

$

468,828

 

 

Schedule of long-term debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

 

December 31, 2018

 

 

 

 

 

 

Unamortized

 

 

 

 

Unamortized

 

 

 

 

 

 

Debt Issuance

 

 

 

 

Debt Issuance

 

 

    

Principal

    

Cost

    

Principal

    

Cost

 

$495 Million Credit Facility

 

$

395,724

 

$

11,642

 

$

445,000

 

$

14,423

 

$108 Million Credit Facility

 

 

100,100

 

 

1,452

 

 

106,420

 

 

1,849

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total debt

 

$

495,824

 

$

13,094

 

$

551,420

 

$

16,272

 

 

Schedule of effective interest rate and the range of interest rates on the debt

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended December 31,

 

 

    

2019

 

2018

 

2017

 

  

Effective Interest Rate 

 

5.31

%  

5.71

%  

5.29

%  

  

Range of Interest Rates (excluding unused commitment fees) 

 

4.05 % to 5.76

%  

3.83 % to 8.43

%  

3.36 % to 7.82

%  

  

 

Secured Debt | $108 Million Credit Facility  
Line of Credit Facility  
Scheduled repayment of outstanding debt

 

 

 

 

 

Year Ending December 31, 

    

Total

 

 

 

 

 

 

2020

 

$

6,320

 

2021

 

 

6,320

 

2022

 

 

6,320

 

2023

 

 

81,140

 

 

 

 

 

 

Total debt

 

$

100,100

 

 

Secured Debt | $495 Million Credit Facility  
Line of Credit Facility  
Scheduled repayment of outstanding debt

 

 

 

 

 

Year Ending December 31, 

    

Total

 

 

 

 

 

 

2020

 

$

63,427

 

2021

 

 

63,427

 

2022

 

 

63,427

 

2023

 

 

205,443

 

 

 

 

 

 

Total debt

 

$

395,724

 

 

v3.19.3.a.u2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
12 Months Ended
Dec. 31, 2019
FAIR VALUE OF FINANCIAL INSTRUMENTS  
Schedule of fair values and carrying values of the Company's financial instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

 

December 31, 2018

 

 

    

Carrying

    

 

 

    

Carrying

    

 

 

 

 

    

Value

    

Fair Value

    

Value

    

Fair Value

 

Cash and cash equivalents

 

$

155,889

 

$

155,889

 

$

197,499

 

$

197,499

 

Restricted cash

 

 

6,360

 

 

6,360

 

 

5,262

 

 

5,262

 

Floating rate debt

 

 

495,824

 

 

495,824

 

 

551,420

 

 

551,420

 

 

v3.19.3.a.u2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)
12 Months Ended
Dec. 31, 2019
PREPAID EXPENSES AND OTHER CURRENT ASSETS  
Schedule of prepaid expenses and other current assets

 

 

 

 

 

 

 

 

 

    

December 31, 

    

December 31, 

 

 

    

2019

    

2018

 

Vessel stores

 

$

638

 

$

597

 

Capitalized contract costs

 

 

1,952

 

 

2,289

 

Prepaid items

 

 

2,870

 

 

3,426

 

Insurance receivable

 

 

2,039

 

 

851

 

Advance to agents

 

 

1,162

 

 

1,109

 

Other

 

 

1,388

 

 

2,177

 

Total prepaid expenses and other current assets

 

$

10,049

 

$

10,449

 

 

v3.19.3.a.u2
FIXED ASSETS (Tables)
12 Months Ended
Dec. 31, 2019
Detail of Fixed Assets, Excluding Vessels  
FIXED ASSETS  
Schedule of fixed assets

 

 

 

 

 

 

 

 

 

    

December 31, 

    

December 31, 

 

 

    

2019

    

2018

 

Fixed assets, at cost:

 

 

 

 

 

 

 

Vessel equipment

 

$

7,288

 

$

2,873

 

Furniture and fixtures

 

 

467

 

 

462

 

Leasehold improvements

 

 

100

 

 

 —

 

Computer equipment

 

 

275

 

 

236

 

Total costs

 

 

8,130

 

 

3,571

 

Less: accumulated depreciation and amortization

 

 

(2,154)

 

 

(1,281)

 

Total fixed assets, net

 

$

5,976

 

$

2,290

 

 

v3.19.3.a.u2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)
12 Months Ended
Dec. 31, 2019
ACCOUNTS PAYABLE AND ACCRUED EXPENSES.  
Schedule of accounts payable and accrued expenses

 

 

 

 

 

 

 

 

 

    

December 31, 

    

December 31, 

 

 

    

2019

    

2018

 

Accounts payable

 

$

26,040

 

$

15,110

 

Accrued general and administrative expenses

 

 

4,105

 

 

4,298

 

Accrued vessel operating expenses

 

 

19,459

 

 

9,735

 

Total accounts payable and accrued expenses

 

$

49,604

 

$

29,143

 

 

v3.19.3.a.u2
VOYAGE REVENUE (Tables)
12 Months Ended
Dec. 31, 2019
VOYAGE REVENUE  
Schedule of voyage revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ended

 

 

 

 

December 31, 

 

 

    

2019

 

2018

 

2017

 

Lease revenue

 

$

108,096

 

$

168,392

 

$

181,249

 

Spot market voyage revenue

 

 

281,400

 

 

199,130

 

 

28,449

 

Total voyage revenues

 

$

389,496

 

$

367,522

 

$

209,698

 

 

v3.19.3.a.u2
LEASES (Tables)
12 Months Ended
Dec. 31, 2019
LEASES  
Schedule of balance sheet information related to operating leases

 

 

 

 

 

 

 

 

December 31, 

 

 

 

2019

 

Operating Lease:

 

 

 

 

Operating lease right-of-use asset

 

$

8,241

 

 

 

 

 

 

Current operating lease liabilities

 

$

1,677

 

Long-term operating lease liabilities

 

 

9,826

 

Total operating lease liabilities

 

$

11,503

 

 

 

 

 

 

Weighted average remaining lease term (years)

 

 

5.75

 

Weighted average discount rate

 

 

5.15

%

 

Schedule of maturities of operating lease liabilities under ASC 842

 

 

 

 

 

 

 

December 31, 

 

 

 

2019

 

2020

 

$

2,230

 

2021

 

 

2,230

 

2022

 

 

2,230

 

2023

 

 

2,378

 

2024

 

 

2,453

 

Thereafter

 

 

1,839

 

Total lease payments

 

 

13,360

 

Less imputed interest

 

 

(1,857)

 

Present value of lease liabilities

 

$

11,503

 

 

Schedule of maturities of operating liabilities under ASU 840

 

 

 

 

 

 

 

December 31,

 

 

 

2018

 

2019

 

$

2,230

 

2020

 

 

2,230

 

2021

 

 

2,230

 

2022

 

 

2,230

 

2023

 

 

2,378

 

Thereafter

 

 

4,292

 

Total lease payments

 

 

15,590

 

 

Schedule of cash flow information related to operating leases

 

 

 

 

 

 

 

For the

 

 

 

Year Ended

 

 

 

December 31, 

 

 

 

2019

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

Operating cash flows from operating lease

 

$

2,230

 

 

v3.19.3.a.u2
STOCK-BASED COMPENSATION (Tables)
12 Months Ended
Dec. 31, 2019
2014 MIP Plan  
Stock Awards  
Schedule of nonvested stock amortization expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended December 31,

 

 

 

2019

 

2018

 

2017

 

General and administrative expenses

 

$

 —

 

$

 —

 

$

368

 

 

Summary of nonvested stock awards

 

 

 

 

 

 

 

 

 

For the Year Ended December 31,

 

 

 

2017

 

 

 

 

 

Weighted

 

 

 

Number of

 

Average Grant

 

 

 

Shares

 

Date Price

 

Outstanding at January 1

 

9,255

 

$

200.00

 

Granted

 

 —

 

 

 —

 

Vested

 

(9,255)

 

 

200.00

 

Forfeited

 

 —

 

 

 —

 

 

 

 

 

 

 

 

Outstanding at December 31

 

 —

 

$

 —

 

 

2014 MIP Plan | Warrants  
Stock Awards  
Summary of warrant activity and warrants outstanding

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ended December 31,

 

 

 

2017

 

 

 

 

 

Weighted

 

Weighted

 

 

 

 

 

Average

 

Average

 

 

 

Number of

 

 Exercise

 

Fair

 

 

    

Warrants

    

Price

 

Value

 

Outstanding at January 1 - Unvested

 

713,122

 

$

303.12

 

$

6.36

 

Granted

 

 —

 

 

 —

 

 

 —

 

Exercisable

 

(713,122)

 

 

303.12

 

 

6.36

 

Exercised

 

 —

 

 

 —

 

 

 —

 

Forfeited

 

 —

 

 

 —

 

 

 —

 

 

 

 

 

 

 

 

 

 

 

Outstanding at December 31 - Unvested

 

 —

 

$

 —

 

$

 —

 

 

 

The following table summarizes certain information about the warrants outstanding as of December 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warrants Outstanding and Unvested,

 

Warrants Outstanding and Exercisable,

 

December 31, 2019

 

December 31, 2019

 

 

 

 

 

Weighted

 

 

 

 

 

 

Weighted

 

 

 

Weighted

 

Average

 

 

 

Weighted

 

Average

 

 

 

Average

 

Remaining

 

 

 

Average

 

Remaining

 

Number of

 

Exercise

 

Contractual

 

Number of

 

Exercise

 

Contractual

 

Warrants

    

Price

    

Life

    

Warrants

    

Price

    

Life

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 —

 

$

 —

 

 —

 

8,557,461

 

$

288.99

 

0.60

 

 

Schedule of nonvested stock amortization expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended December 31,

 

 

 

2019

 

2018

 

2017

 

General and administrative expenses

 

$

 —

 

$

 —

 

$

902

 

 

2015 EIP Plan | Stock Options  
Stock Awards  
Schedule of nonvested stock amortization expense

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended December 31,

 

 

 

2019

 

2018

 

2017

 

General and administrative expenses

 

$

850

 

$

731

 

$

512

 

 

Schedule of stock option activity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended December 31,

 

 

 

 

2019

 

2018

 

2017

 

 

 

 

 

 

Weighted

 

Weighted

 

 

 

Weighted

 

Weighted

 

 

 

Weighted

 

Weighted

 

 

 

 

Number

 

Average

 

Average

 

Number

 

Average

 

Average

 

Number

 

Average

 

Average

 

 

 

 

of

 

Exercise

 

Fair

 

of

 

Exercise

 

Fair

 

of

 

Exercise

 

Fair

 

 

 

    

Options

    

Price

    

Price

    

Options

    

Price

    

Price

    

Options

    

Price

    

Price

 

 

Outstanding at January 1 - Unvested

 

166,942

 

$

13.01

 

 

7.25

 

88,667

 

$

11.13

 

 

6.41

 

 —

 

$

 —

 

 

 —

 

 

Granted

 

240,540

 

 

8.33

 

 

3.76

 

122,608

 

 

13.69

 

 

7.55

 

133,000

 

 

11.13

 

 

6.41

 

 

Exercisable

 

(85,203)

 

 

12.36

 

 

6.96

 

(44,333)

 

 

11.13

 

 

6.41

 

(44,333)

 

 

11.13

 

 

6.41

 

 

Exercised

 

 —

 

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

Forfeited

 

 —

 

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at December 31 - Unvested

 

322,279

 

$

9.41

 

$

4.72

 

166,942

 

$

13.01

 

$

7.25

 

88,667

 

$

11.13

 

$

6.41

 

 

 

The following table summarizes certain information about the options outstanding as of December 31, 2019, as adjusted for the special dividend declared on November 5, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Options Outstanding and Unvested,

 

Options Outstanding and Exercisable,

 

 

 

 

December 31, 2019

 

December 31, 2019

 

Weighted

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

Weighted

 

Average

 

 

 

Weighted

 

Average

 

 

 

Weighted

 

Average

 

Exercise Price of

 

 

 

Average

 

Remaining

 

 

 

Average

 

Remaining

 

Outstanding

 

Number of

 

Exercise

 

Contractual

 

Number of

 

Exercise

 

Contractual

 

Options

    

Options

    

Price

    

Life

    

Options

    

Price

    

Life

 

$

10.11

 

322,279

 

$

9.41

 

4.92

 

173,869

 

$

11.41

 

3.45

 

 

2015 EIP Plan | Restricted Stock Units  
Stock Awards  
Schedule of nonvested stock amortization expense

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended December 31,

 

 

 

2019

 

2018

 

2017

 

General and administrative expenses

 

$

1,207

 

$

1,489

 

$

2,241

 

 

Summary of nonvested restricted stock units

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

2017

 

 

 

 

Weighted

 

 

 

Weighted

 

 

 

Weighted

 

 

Number of

 

Average Grant

 

Number of

 

Average Grant

 

Number of

 

Average Grant

 

 

RSUs

 

Date Price

 

RSUs

 

Date Price

 

RSUs

    

Date Price

 

Outstanding at January 1

149,170

 

$

12.42

 

220,129

 

$

11.01

 

66,666

 

$

5.10

 

Granted

140,914

 

 

8.50

 

51,704

 

 

14.84

 

317,595

 

 

11.05

 

Vested

(127,988)

 

 

12.10

 

(122,663)

 

 

10.92

 

(164,132)

 

 

8.68

 

Forfeited

 —

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at December 31

162,096

 

$

9.26

 

149,170

 

$

12.42

 

220,129

 

$

11.01

 

 

The total fair value of the RSUs that vested during the years ended December 31, 2019, 2018 and 2017 was $1,235, $1,694 and $1,858, respectively. The total fair value is calculated as the number of shares vested during the period multiplied by the fair value on the vesting date.    

 

The following table summarizes certain information of the RSUs unvested and vested as of December 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

Unvested RSUs

 

Vested RSUs

 

December 31, 2019

 

December 31, 2019

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

Weighted

 

Average

 

 

 

Weighted

 

 

 

Average

 

Remaining

 

 

 

Average

 

Number of

 

Grant Date

 

Contractual

 

Number of

 

Grant Date

 

RSUs

    

Price

    

Life

    

RSUs

    

Price

 

162,096

 

$

9.26

 

1.67

 

422,223

 

$

11.47

 

 

2015 EIP Plan | Restricted Stock  
Stock Awards  
Schedule of nonvested stock amortization expense

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended December 31,

 

 

 

2019

 

2018

 

2017

 

General and administrative expenses

 

$

 —

 

$

11

 

$

30

 

 

Summary of nonvested stock awards

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For theYears Ended December 31,

 

 

2018

 

2017

 

 

 

 

 

Weighted

 

 

 

Weighted

 

 

 

Number of

 

Average Grant

 

Number of

 

Average Grant

 

 

 

Shares

 

Date Price

    

Shares

 

Date Price

 

Outstanding at January 1

 

6,802

 

$

5.20

 

13,605

 

$

5.20

 

Granted 

 

 —

 

 

 —

 

 —

 

 

 —

 

Vested 

 

(6,802)

 

 

5.20

 

(6,803)

 

 

5.20

 

Forfeited 

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at December 31

 

 —

 

$

 —

 

6,802

 

$

5.20

 

 

v3.19.3.a.u2
GENERAL INFORMATION (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Jun. 19, 2018
Jan. 04, 2017
Nov. 15, 2016
Dec. 31, 2018
Dec. 31, 2017
Common Stock          
Summary of Significant Accounting Policies          
Issuance of stock (in shares) 7,015,000     7,015,000  
Share price (in dollars per share) $ 16.50        
Net proceeds proceeds from issuance of common stock $ 109,648        
Series A Preferred Stock | Preferred Stock          
Summary of Significant Accounting Policies          
Common stock authorized for conversion of preferred stock   27,061,856      
Preferred stock, par value (in dollars per share)   $ 0.01      
Preferred stock outstanding (in shares)   27,061,856      
Preferred stock converted into common stock   27,061,856     27,061,856
Private placement | Series A Preferred Stock          
Summary of Significant Accounting Policies          
Issuance of stock (in shares)     27,061,856    
Issuance of stock excluding services (in shares)     25,773,196    
Share price (in dollars per share)     $ 4.85    
Additional shares issued as commitment fee (in shares)     1,288,660    
Net proceeds     $ 120,789    
v3.19.3.a.u2
GENERAL INFORMATION - Vessel Details (Details) - item
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Vessels      
Number of vessels in the fleet 55 59 60
Genco Augustus Limited | Genco Augustus      
Vessels      
Capacity of vessels 180,151    
Genco Tiberius Limited | Genco Tiberius      
Vessels      
Capacity of vessels 175,874    
Genco London Limited | Genco London      
Vessels      
Capacity of vessels 177,833    
Genco Titus Limited | Genco Titus      
Vessels      
Capacity of vessels 177,729    
Genco Charger Limited | Genco Charger      
Vessels      
Capacity of vessels 28,398    
Genco Warrior Limited | Genco Warrior      
Vessels      
Capacity of vessels 55,435    
Genco Predator Limited | Genco Predator      
Vessels      
Capacity of vessels 55,407    
Genco Hunter Limited | Genco Hunter      
Vessels      
Capacity of vessels 58,729    
Genco Constantine Limited | Genco Constantine      
Vessels      
Capacity of vessels 180,183    
Genco Thunder LLC | Genco Thunder      
Vessels      
Capacity of vessels 76,588    
Genco Hadrian Limited | Genco Hadrian      
Vessels      
Capacity of vessels 169,025    
Genco Commodus Limited | Genco Commodus      
Vessels      
Capacity of vessels 169,098    
Genco Maximus Limited | Genco Maximus      
Vessels      
Capacity of vessels 169,025    
Genco Claudius Limited | Genco Claudius      
Vessels      
Capacity of vessels 169,001    
Genco Bay Limited | Genco Bay      
Vessels      
Capacity of vessels 34,296    
Genco Ocean Limited | Genco Ocean      
Vessels      
Capacity of vessels 34,409    
Genco Avra Limited | Genco Avra      
Vessels      
Capacity of vessels 34,391    
Genco Mare Limited | Genco Mare      
Vessels      
Capacity of vessels 34,428    
Genco Spirit Limited | Genco Spirit      
Vessels      
Capacity of vessels 34,432    
Genco Aquitaine Limited | Genco Aquitaine      
Vessels      
Capacity of vessels 57,981    
Genco Ardennes Limited | Genco Ardennes      
Vessels      
Capacity of vessels 58,018    
Genco Auvergne Limited | Genco Auvergne      
Vessels      
Capacity of vessels 58,020    
Genco Bourgogne Limited | Genco Bourgogne      
Vessels      
Capacity of vessels 58,018    
Genco Brittany Limited | Genco Brittany      
Vessels      
Capacity of vessels 58,018    
Genco Languedoc Limited | Genco Languedoc      
Vessels      
Capacity of vessels 58,018    
Genco Loire Limited | Genco Loire      
Vessels      
Capacity of vessels 53,430    
Genco Lorraine Limited | Genco Lorraine      
Vessels      
Capacity of vessels 53,417    
Genco Normandy Limited | Genco Normandy      
Vessels      
Capacity of vessels 53,596    
Genco Picardy Limited | Genco Picardy      
Vessels      
Capacity of vessels 55,257    
Genco Provence Limited | Genco Provence      
Vessels      
Capacity of vessels 55,317    
Genco Pyrenees Limited | Genco Pyrenees      
Vessels      
Capacity of vessels 58,018    
Genco Rhone Limited | Genco Rhone      
Vessels      
Capacity of vessels 58,018    
Genco Weatherly Limited | Genco Weatherly      
Vessels      
Capacity of vessels 61,556    
Genco Columbia Limited | Genco Columbia      
Vessels      
Capacity of vessels 60,294    
Genco Endeavour Limited | Genco Endeavour      
Vessels      
Capacity of vessels 181,060    
Genco Resolute Limited | Genco Resolute      
Vessels      
Capacity of vessels 181,060    
Genco Defender Limited | Genco Defender      
Vessels      
Capacity of vessels 180,021    
Genco Liberty Limited | Genco Liberty      
Vessels      
Capacity of vessels 180,032    
Baltic Lion Limited | Baltic Lion      
Vessels      
Capacity of vessels 179,185    
Baltic Tiger Limited | Genco Tiger      
Vessels      
Capacity of vessels 179,185    
Baltic Leopard Limited | Baltic Leopard      
Vessels      
Capacity of vessels 53,446    
Baltic Panther Limited | Baltic Panther      
Vessels      
Capacity of vessels 53,350    
Baltic Cougar Limited | Baltic Cougar      
Vessels      
Capacity of vessels 53,432    
Baltic Jaguar Limited | Baltic Jaguar      
Vessels      
Capacity of vessels 53,473    
Baltic Bear Limited | Baltic Bear      
Vessels      
Capacity of vessels 177,717    
Baltic Wolf Limited | Baltic Wolf      
Vessels      
Capacity of vessels 177,752    
Baltic Wind Limited | Baltic Wind      
Vessels      
Capacity of vessels 34,408    
Baltic Cove Limited | Baltic Cove      
Vessels      
Capacity of vessels 34,403    
Baltic Breeze Limited | Baltic Breeze      
Vessels      
Capacity of vessels 34,386    
Baltic Fox Limited | Baltic Fox      
Vessels      
Capacity of vessels 31,883    
Baltic Hare Limited | Baltic Hare      
Vessels      
Capacity of vessels 31,887    
Baltic Hornet Limited | Baltic Hornet      
Vessels      
Capacity of vessels 63,574    
Baltic Wasp Limited | Baltic Wasp      
Vessels      
Capacity of vessels 63,389    
Baltic Scorpion Limited | Baltic Scorpion      
Vessels      
Capacity of vessels 63,462    
Baltic Mantis Limited | Baltic Mantis      
Vessels      
Capacity of vessels 63,470    
v3.19.3.a.u2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Segment (Details)
12 Months Ended
Dec. 31, 2019
segment
Segment reporting  
Number of reportable segments 1
v3.19.3.a.u2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue and Voyage Expense (Details)
$ / item in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2019
USD ($)
item
Dec. 31, 2018
USD ($)
item
Dec. 31, 2017
USD ($)
item
$ / item
Voyage expense recognition      
Net (loss) gain on purchase and sale of bunker fuel and net realizable value adjustments | $ $ (829) $ 3,000 $ 2,021
Number of vessels in vessel pools 0 0  
Spot Market-Related Time Charter Agreement with Profit Sharing Element      
Voyage expense recognition      
Number of vessels under spot market-related time charters which include a profit-sharing element 0 0 6
Floor price (in dollars per unit) | $ / item     3
Allocation of excess profit sharing amount (as a percent)     50.00%
v3.19.3.a.u2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Loss on Debt Extinguishment (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2019
Feb. 28, 2019
Dec. 31, 2017
Nov. 15, 2016
Nov. 10, 2016
Nov. 04, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]              
Loss on debt extinguishment $ 4,533            
$400 Million Credit Facility | Secured Debt              
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]              
Face amount of term loan facility 400,000     $ 400,000   $ 400,000  
$98 Million Credit Facility | Line of Credit Facility              
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]              
Face amount of term loan facility 98,000     $ 98,000 $ 98,000   $ 98,000
$495 Million Credit Facility | Secured Debt              
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]              
Face amount of term loan facility $ 495,000 $ 495,000 $ 495,000        
v3.19.3.a.u2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Vessels, net and Deferred revenue (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2019
USD ($)
$ / item
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Vessels, net      
Estimated useful life 25 years    
Estimated scrap value (in dollars per lightweight ton) | $ / item 310    
Depreciation and amortization $ 72,824 $ 68,976 $ 71,776
Deferred drydocking costs      
Amortization expense for drydocking 5,484 4,629 4,988
Due from charterers, reserve 1,064 669  
Charter hire expenses 16,179 1,534 0
Accrual related to estimated customer claims $ 577 345  
Minimum      
Deferred drydocking costs      
Period for which vessels are required to be drydocked for major repairs and maintenance 30 months    
Maximum      
Deferred drydocking costs      
Period for which vessels are required to be drydocked for major repairs and maintenance 60 months    
Furniture and fixtures      
Fixed assets, net      
Useful lives 5 years    
Vessel equipment | Minimum      
Fixed assets, net      
Useful lives 2 years    
Vessel equipment | Maximum      
Fixed assets, net      
Useful lives 15 years    
Computer equipment      
Fixed assets, net      
Useful lives 3 years    
Vessels      
Vessels, net      
Depreciation and amortization $ 66,351 64,012 66,514
Detail of Fixed Assets, Excluding Vessels      
Vessels, net      
Depreciation and amortization $ 989 $ 335 $ 274
v3.19.3.a.u2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Impairment (Details)
$ in Thousands
3 Months Ended 12 Months Ended
Feb. 24, 2020
USD ($)
Feb. 03, 2020
USD ($)
Dec. 11, 2019
USD ($)
Nov. 04, 2019
USD ($)
Oct. 21, 2019
USD ($)
Oct. 10, 2019
USD ($)
Sep. 25, 2019
USD ($)
Sep. 20, 2019
USD ($)
Aug. 02, 2019
USD ($)
Aug. 07, 2018
USD ($)
Jul. 24, 2018
USD ($)
Mar. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Sep. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Jun. 30, 2018
USD ($)
Feb. 27, 2018
item
Impairment of long-lived assets                                      
Impairment of vessel assets                         $ 27,393 $ 56,586 $ 21,993        
Genco Charger                                      
Impairment of long-lived assets                                      
Vessel net sales price                         5,099            
Impairment of vessel assets                         1,314            
Genco Challenger                                      
Impairment of long-lived assets                                      
Sale of assets           $ 5,250     $ 5,250                    
Broker commission (as a percent)           2.00%     2.00%                    
Vessel net sales price                                 $ 5,145    
Impairment of vessel assets                         4,401            
Genco Raptor                                      
Impairment of long-lived assets                                      
Sale of assets     $ 10,200 $ 10,200                              
Broker commission (as a percent)     2.00% 2.00%                              
Vessel net sales price                               $ 9,996      
Impairment of vessel assets                         5,812            
Genco Thunder                                      
Impairment of long-lived assets                                      
Sale of assets             $ 10,400                        
Broker commission (as a percent)             2.00%                        
Vessel net sales price                               10,192      
Impairment of vessel assets                         5,749            
Genco Champion                                      
Impairment of long-lived assets                                      
Sale of assets         $ 6,600     $ 6,600                      
Broker commission (as a percent)         3.00%     3.00%                      
Vessel net sales price                               $ 6,402      
Impairment of vessel assets                         621            
Genco Champion and Genco Charger                                      
Impairment of long-lived assets                                      
Impairment of vessel assets                         $ 9,496            
Genco Surprise                                      
Impairment of long-lived assets                                      
Sale of assets                   $ 5,300 $ 5,300                
Broker commission (as a percent)                   3.00% 3.00%                
Vessel net sales price                                   $ 5,141  
Impairment of vessel assets                           184 3,339        
Genco Cavalier, Genco Loire, Genco Lorraine, Genco Muse, Genco Normandy, Baltic Cougar, Baltic Jaguar, Baltic Leopard and Baltic Panther                                      
Impairment of long-lived assets                                      
Number impaired vessel assets | item                                     9
Impairment of vessel assets                           $ 56,402          
Genco Beauty, Genco Explorer, Genco Knight, Genco Progress and Genco Vigour                                      
Impairment of long-lived assets                                      
Impairment of vessel assets                             $ 18,654        
Subsequent Event | Genco Charger                                      
Impairment of long-lived assets                                      
Sale of assets $ 5,150 $ 5,150                                  
Broker commission (as a percent) 1.00% 1.00%                                  
Forecast | Genco Thunder                                      
Impairment of long-lived assets                                      
Sale of assets                       $ 10,400              
Broker commission (as a percent)                       2.00%              
v3.19.3.a.u2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Sale of Vessels (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Gain on sale of vessels      
(Loss) gain on sale of vessels $ (168) $ 3,513 $ 7,712
Genco Progress, Genco Cavalier, Genco Explorer, Genco Muse, Genco Beauty and Genco Knight      
Gain on sale of vessels      
(Loss) gain on sale of vessels   $ 3,513  
Genco Challenger, Genco Champion and Genco Raptor      
Gain on sale of vessels      
(Loss) gain on sale of vessels $ (168)    
Genco Wisdom, Genco Reliance, Genco Carrier, Genco Success And Genco Prosperity      
Gain on sale of vessels      
(Loss) gain on sale of vessels     $ 7,712
v3.19.3.a.u2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Restricted Cash (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Restricted Cash        
Cash and cash equivalents $ 155,889 $ 197,499 $ 174,479 $ 133,400
Restricted cash - current 6,045 4,947 7,234 8,242
Restricted cash - noncurrent 315 315 23,233 27,426
Cash, cash equivalents and restricted cash $ 162,249 $ 202,761 $ 204,946 $ 169,068
v3.19.3.a.u2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Aug. 15, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Taxes        
Gross transportation tax   $ 0 $ 0 $ 365
Ownership percentage held by each shareholder (as a percent)   5.00% 5.00% 5.00%
Federal tax rate (as a percent)     21.00%  
Tax rate on 50% of shipping income if not qualified for Section 883   4.00%    
Tax on branch profits   30.00%    
Percentage of shipping income sourced to United States if attributable to transportation exclusively between United States ports   100.00%    
Percentage of shipping income attributable to transportation that begins or ends in the United States included in United States source shipping income   50.00%    
Percentage of shipping income sourced to United States if no transportation is attributable to United States   0.00%    
Minimum        
Income Taxes        
Combined ownership held by 5% shareholders (as a percent)   50.00%    
Combined ownership of shareholders for more than half the days of year (as a percent)       50.00%
Percentage of value of outstanding shares owned by the qualified shareholders of a foreign corporation   50.00%    
Maximum        
Income Taxes        
Combined ownership of shareholders for more than half the days of year (as a percent)   50.00% 50.00%  
Singapore | Genco Shipping Pte. Ltd. (GSPL)        
Income Taxes        
Federal tax rate (as a percent)   17.00%    
Initial period of the Maritime Sector Incentive award 10 years      
Initial performance review period of the Maritime Sector Incentive award 5 years      
Singapore | Genco Shipping Pte. Ltd. (GSPL) | Ohter income (expense)        
Income Taxes        
Income tax expense   $ 0 $ 0 $ 0
Denmark | Genco Shipping A/S        
Income Taxes        
Federal tax rate (as a percent)   22.00% 22.00%  
Denmark | Genco Shipping A/S | Ohter income (expense)        
Income Taxes        
Income tax expense   $ 241 $ 79  
v3.19.3.a.u2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration Risk (Details)
12 Months Ended
Dec. 31, 2019
USD ($)
customer
Dec. 31, 2018
USD ($)
customer
Dec. 31, 2017
customer
Concentration Risk      
Number of financial institutions with which the entity maintains its cash and cash equivalents | $ 4 4  
Cash insured by financial institutions | $ $ 0 $ 0  
Voyage Revenues | Customer Concentration Risk      
Concentration Risk      
Number of customers | customer 170 182 102
Major Customers | customer 0 0 2
Concentration risk percentage (as a percent) 10.00% 10.00% 10.00%
Voyage Revenues | Customer Concentration Risk | Swissmarine Services S.A.      
Concentration Risk      
Concentration risk percentage (as a percent)     15.09%
Voyage Revenues | Customer Concentration Risk | Clipper Group      
Concentration Risk      
Concentration risk percentage (as a percent)     10.98%
v3.19.3.a.u2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent Accounting Pronouncements (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Jan. 01, 2019
Summary of Significant Accounting Policies        
Operating Lease, Right-of-use asset $ 8,241      
Operating Lease, Liability 11,503      
Payment of PIK interest $ 0 $ 5,341 $ 0  
Adjustment | ASU 2016-02        
Summary of Significant Accounting Policies        
Operating Lease, Right-of-use asset       $ 9,710
Operating Lease, Liability       $ 13,095
v3.19.3.a.u2
CASH FLOW INFORMATION - Non-cash (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Nov. 10, 2016
Non-cash investing and financing activities        
Professional fees and trustee fees recognized in Reorganization items before fresh-start adjustments, net     $ 0  
Cash paid for professional fees and trustee fees for Reorganization items     25  
Reclassification from vessels to vessels held for sale $ 10,303 $ 5,702    
Cash paid for interest 28,376 30,167 25,098  
Cash paid for estimated income taxes 0 0 0  
Cash dividends paid 20,877      
Secured Debt | $400 Million Credit Facility        
Non-cash investing and financing activities        
Face amount of term loan facility   400,000 400,000 $ 400,000
Accounts payable and accrued expenses        
Non-cash investing and financing activities        
Non-cash investing activities purchase of vessels and ballast water treatment systems, including deposits 548 2,228    
Net proceeds from sale of vessels 118      
Non-cash investing activities purchase of scrubbers 9,520 428    
Non-cash investing activities purchase of other fixed assets 413 360 36  
Non-cash financing activities deferred financing fees   1    
Non-cash financing activities common stock issuance costs   $ 105    
Reorganization professional and trustee fees incurred     $ 0  
Cash dividends paid $ 74      
v3.19.3.a.u2
CASH FLOW INFORMATION - Stock-Based Compensation (Details) - 2015 EIP Plan - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Nov. 05, 2019
May 15, 2019
Mar. 04, 2019
May 15, 2018
Feb. 27, 2018
May 17, 2017
Mar. 23, 2017
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Restricted Stock Units                    
Non-cash investing and financing activities                    
Granted (in shares)   29,580 106,079 14,268 37,436 25,197   140,914 51,704 317,595
Aggregate fair value   $ 255 $ 890 $ 255 $ 512 $ 255        
Vested (in shares)   14,268   25,197       127,988 122,663 164,132
Restricted Stock Units | John C. Wobensmith                    
Non-cash investing and financing activities                    
Granted (in shares)             292,398      
Aggregate fair value             $ 3,254      
Stock Options                    
Non-cash investing and financing activities                    
Options to purchase (in shares)     240,540   122,608     240,540 122,608 133,000
Exercise price               $ 8.33 $ 13.69 $ 11.13
Aggregate fair value     $ 904   $ 926          
Stock Options | Exercise Price - $8.065                    
Non-cash investing and financing activities                    
Exercise price $ 8.065                  
Stock Options | Exercise Price - $13.365                    
Non-cash investing and financing activities                    
Exercise price 13.365                  
Stock Options | John C. Wobensmith                    
Non-cash investing and financing activities                    
Options to purchase (in shares)             133,000      
Exercise price $ 10.805                  
Aggregate fair value             $ 853      
v3.19.3.a.u2
VESSEL ACQUISITIONS AND DISPOSITIONS (Details)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 11, 2019
USD ($)
Nov. 15, 2019
Nov. 05, 2019
USD ($)
Nov. 04, 2019
USD ($)
Oct. 21, 2019
USD ($)
Oct. 10, 2019
USD ($)
Sep. 25, 2019
USD ($)
Sep. 20, 2019
USD ($)
Aug. 02, 2019
USD ($)
Apr. 15, 2019
USD ($)
Jan. 28, 2019
USD ($)
Dec. 26, 2018
USD ($)
Dec. 17, 2018
USD ($)
Dec. 05, 2018
USD ($)
Nov. 13, 2018
USD ($)
Oct. 16, 2018
USD ($)
Sep. 13, 2018
USD ($)
Aug. 07, 2018
USD ($)
Jul. 24, 2018
USD ($)
May 31, 2018
May 16, 2017
USD ($)
Mar. 19, 2017
USD ($)
Feb. 16, 2017
USD ($)
Feb. 09, 2017
USD ($)
Jan. 09, 2017
USD ($)
Mar. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
item
Dec. 31, 2018
USD ($)
item
Feb. 28, 2019
USD ($)
Aug. 14, 2018
USD ($)
item
Jul. 12, 2018
USD ($)
item
Jun. 06, 2018
USD ($)
item
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
VESSEL ACQUISITIONS                                                                    
Restricted cash, current                                                     $ 6,045 $ 4,947         $ 7,234 $ 8,242
Number of vessels sold which did not serve as collateral under credit facilities | item                                                       6            
Secured Debt | $495 Million Credit Facility                                                                    
VESSEL ACQUISITIONS                                                                    
Maximum borrowing capacity                                                     495,000 $ 495,000 $ 495,000          
Collateral vessel replacement period                                       120 days                            
Secured Debt | $108 Million Credit Facility                                                                    
VESSEL ACQUISITIONS                                                                    
Maximum borrowing capacity                                                     108,000 108,000   $ 108,000        
Agreement To Purchase Ultramax And Capesize Vessels                                                                    
VESSEL ACQUISITIONS                                                                    
Number of vessels committed to be acquired under purchase agreement | item                                                               4    
Aggregate purchase price for vessels                                                               $ 141,000    
Agreement To Purchase Ultramax And Capesize Vessels | Secured Debt | $108 Million Credit Facility                                                                    
VESSEL ACQUISITIONS                                                                    
Number of vessels committed to be acquired under purchase agreement | item                                                           6        
Agreement to Purchase Capesize Drybulk Vessels                                                                    
VESSEL ACQUISITIONS                                                                    
Number of vessels committed to be acquired under purchase agreement | item                                                             2 2    
Aggregate purchase price for vessels                                                             $ 98,000      
Agreement to Purchase Capesize Drybulk Vessels | Secured Debt | $108 Million Credit Facility                                                                    
VESSEL ACQUISITIONS                                                                    
Number of vessels committed to be acquired under purchase agreement | item                                                           4        
Agreement To Purchase Ultramax Drybulk Vessels                                                                    
VESSEL ACQUISITIONS                                                                    
Number of vessels committed to be acquired under purchase agreement | item                                                               2    
Agreement To Purchase Ultramax Drybulk Vessels | Secured Debt | $108 Million Credit Facility                                                                    
VESSEL ACQUISITIONS                                                                    
Number of vessels committed to be acquired under purchase agreement | item                                                           2        
Genco Vigour                                                                    
VESSEL ACQUISITIONS                                                                    
Sale of assets                     $ 6,550                                              
Broker commission (as a percent)                     2.00%                                              
Genco Knight                                                                    
VESSEL ACQUISITIONS                                                                    
Sale of assets                       $ 6,200                                            
Broker commission (as a percent)                       3.00%                                            
Genco Beauty                                                                    
VESSEL ACQUISITIONS                                                                    
Sale of assets                         $ 6,560                                          
Broker commission (as a percent)                         3.00%                                          
Genco Muse                                                                    
VESSEL ACQUISITIONS                                                                    
Sale of assets                           $ 6,660                                        
Broker commission (as a percent)                           2.00%                                        
Genco Cavalier                                                                    
VESSEL ACQUISITIONS                                                                    
Sale of assets                               $ 10,000                                    
Broker commission (as a percent)                               2.50%                                    
Genco Cavalier | Secured Debt | $495 Million Credit Facility                                                                    
VESSEL ACQUISITIONS                                                                    
Restricted cash, current                                                       $ 4,947            
Period for which sales proceeds from vessels will remain as restricted cash                               180 days                                    
Vessel sale proceeds utilized as a loan repayment                   $ 4,947                                                
Genco Surprise                                                                    
VESSEL ACQUISITIONS                                                                    
Sale of assets                                   $ 5,300 $ 5,300                              
Broker commission (as a percent)                                   3.00% 3.00%                              
Genco Progress                                                                    
VESSEL ACQUISITIONS                                                                    
Sale of assets                                 $ 5,600                                  
Broker commission (as a percent)                                 3.00%                                  
Genco Explorer                                                                    
VESSEL ACQUISITIONS                                                                    
Sale of assets                             $ 5,600                                      
Broker commission (as a percent)                             3.00%                                      
Genco Raptor                                                                    
VESSEL ACQUISITIONS                                                                    
Sale of assets $ 10,200     $ 10,200                                                            
Broker commission (as a percent) 2.00%     2.00%                                                            
Genco Raptor | Secured Debt | $495 Million Credit Facility                                                                    
VESSEL ACQUISITIONS                                                                    
Restricted cash, current                                                     $ 6,045              
Collateral vessel replacement period 180 days                                                                  
Genco Thunder                                                                    
VESSEL ACQUISITIONS                                                                    
Sale of assets             $ 10,400                                                      
Broker commission (as a percent)             2.00%                                                      
Genco Thunder | Forecast                                                                    
VESSEL ACQUISITIONS                                                                    
Sale of assets                                                   $ 10,400                
Broker commission (as a percent)                                                   2.00%                
Genco Champion                                                                    
VESSEL ACQUISITIONS                                                                    
Sale of assets         $ 6,600     $ 6,600                                                    
Broker commission (as a percent)         3.00%     3.00%                                                    
Genco Champion | Secured Debt | $495 Million Credit Facility                                                                    
VESSEL ACQUISITIONS                                                                    
Collateral vessel replacement period         180 days                                                          
Genco Challenger                                                                    
VESSEL ACQUISITIONS                                                                    
Sale of assets           $ 5,250     $ 5,250                                                  
Broker commission (as a percent)           2.00%     2.00%                                                  
Genco Challenger | Secured Debt | $495 Million Credit Facility                                                                    
VESSEL ACQUISITIONS                                                                    
Period for which sales proceeds from vessels will remain as restricted cash           180 days                                                        
Genco Champion and Genco Challenger                                                                    
VESSEL ACQUISITIONS                                                                    
Number of vessels sold | item                                                     2              
Genco Champion and Genco Challenger | Secured Debt | $495 Million Credit Facility                                                                    
VESSEL ACQUISITIONS                                                                    
Vessel sale proceeds utilized as a loan repayment     $ 6,880                                               $ 6,880              
Collateral vessel replacement period   180 days                                                                
Genco Prosperity                                                                    
VESSEL ACQUISITIONS                                                                    
Sale of assets                                         $ 3,050                          
Broker commission (as a percent)                                         3.50%                          
Genco Success                                                                    
VESSEL ACQUISITIONS                                                                    
Sale of assets                                           $ 2,800                        
Broker commission (as a percent)                                           3.00%                        
Genco Carrier                                                                    
VESSEL ACQUISITIONS                                                                    
Sale of assets                                             $ 3,560                      
Brokerage commission                                             $ 92                      
Genco Reliance                                                                    
VESSEL ACQUISITIONS                                                                    
Sale of assets                                               $ 3,500                    
Broker commission (as a percent)                                               3.50%                    
Genco Wisdom                                                                    
VESSEL ACQUISITIONS                                                                    
Sale of assets                                                 $ 3,250                  
Broker commission (as a percent)                                                 3.50%                  
v3.19.3.a.u2
NET LOSS PER SHARE (Details) - shares
3 Months Ended 12 Months Ended
Jul. 10, 2014
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Common shares outstanding, basic:                        
Weighted average common shares outstanding-basic   41,832,942 41,749,200 41,742,301 41,726,106 41,704,296 41,618,187 35,516,058 34,577,990 41,762,893 38,382,599 34,242,631
Common shares outstanding, diluted:                        
Weighted average common shares outstanding-basic   41,832,942 41,749,200 41,742,301 41,726,106 41,704,296 41,618,187 35,516,058 34,577,990 41,762,893 38,382,599 34,242,631
Weighted-average common shares outstanding, diluted (in shares)   41,989,553 41,749,200 41,742,301 41,726,106 41,792,956 41,821,008 35,516,058 34,577,990 41,762,893 38,382,599 34,242,631
Restricted Stock and Restricted Stock Units                        
Anti-dilutive shares (in shares)                   162,097 149,170 226,931
Stock Options                        
Anti-dilutive shares (in shares)                   496,148 255,608 133,000
MIP Warrants                        
Anti-dilutive shares (in shares)                   0 0 0
Equity Warrants                        
Anti-dilutive shares (in shares)                   3,936,761 3,936,761 3,936,761
Equity Warrants                        
Equity warrant term 7 years                      
Number of shares of new stock in which each warrant or right can be converted 0.10                      
v3.19.3.a.u2
RELATED PARTY TRANSACTIONS (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
RELATED PARTY TRANSACTIONS      
Related party transactions $ 0 $ 0 $ 0
v3.19.3.a.u2
DEBT - Components of Long-term Debt (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Feb. 28, 2019
Dec. 31, 2018
Aug. 14, 2018
Line of Credit Facility        
Principal amount $ 495,824   $ 551,420  
Less: Unamortized debt financing costs (13,094)   (16,272)  
Less: Current portion (69,747)   (66,320)  
Long-term debt, net 412,983   468,828  
Secured Debt | $495 Million Credit Facility        
Line of Credit Facility        
Principal amount 395,724   445,000  
Less: Unamortized debt financing costs (11,642)   (14,423)  
Maximum borrowing capacity 495,000 $ 495,000 495,000  
Secured Debt | $108 Million Credit Facility        
Line of Credit Facility        
Principal amount 100,100   106,420  
Less: Unamortized debt financing costs (1,452)   (1,849)  
Maximum borrowing capacity $ 108,000   $ 108,000 $ 108,000
v3.19.3.a.u2
DEBT - Expenses (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Line of Credit Facility      
Deferred financing costs, noncurrent $ 13,094 $ 16,272  
Amortization of deferred financing costs 3,788 3,035 $ 2,325
Payment of debt extinguishment costs   2,962  
$400 Credit Facility, the $98 Million Credit Facility, and the 2014 Term Loan Facilities      
Line of Credit Facility      
Payment of debt extinguishment costs   2,962  
Interest Expense      
Line of Credit Facility      
Amortization of deferred financing costs $ 3,788 $ 3,035 $ 2,325
v3.19.3.a.u2
DEBT - Amended Facilities (Details) - Secured Debt
$ in Thousands
Nov. 05, 2019
USD ($)
facility
Nov. 15, 2019
USD ($)
Feb. 28, 2019
USD ($)
Amended $495 and $108 Credit Facilities      
Line of Credit Facility      
Number of amended credit facilities | facility 2    
Debt covenant to pay dividends or repurchase stock - Total cash and cash equivalents to total indebtedness (as a percent) 18.75%    
Percentage limit of consolidated net income for which dividends can be paid 50.00%    
Amended $495 and $108 Credit Facilities | Minimum      
Line of Credit Facility      
Debt covenant to pay dividends or repurchase stock - Total cash and cash equivalents $ 100,000    
Amended $495 and $108 Credit Facilities | Maximum      
Line of Credit Facility      
Collateral security maintenance test (as a percent) 200.00%    
$35,000 Scrubber Tranche      
Line of Credit Facility      
Maximum borrowing capacity $ 35,000 $ 34,025 $ 35,000
v3.19.3.a.u2
DEBT - $108 Million Credit Facility (Details)
$ in Thousands
3 Months Ended 12 Months Ended
Nov. 05, 2019
USD ($)
Aug. 14, 2018
USD ($)
item
Sep. 30, 2018
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Jul. 12, 2018
item
Jun. 06, 2018
item
Repayment of the outstanding debt                
Total debt       $ 495,824 $ 551,420      
Agreement To Purchase Ultramax And Capesize Vessels                
Line of Credit Facility                
Number of vessels committed to be acquired under purchase agreement | item               4
Agreement to Purchase Capesize Drybulk Vessels                
Line of Credit Facility                
Number of vessels committed to be acquired under purchase agreement | item             2 2
Agreement To Purchase Ultramax Drybulk Vessels                
Line of Credit Facility                
Number of vessels committed to be acquired under purchase agreement | item               2
Secured Debt | $108 Million Credit Facility                
Line of Credit Facility                
Term of facilities   5 years            
Maximum borrowing capacity   $ 108,000   108,000 108,000      
Proceeds from credit facility     $ 108,000   108,000      
Number of vessels to serve as collateral under debt agreement | item   6            
Maximum facility amount of fair market value of aggregate vessels at delivery (as a percent)     45.00%          
Remaining borrowing capacity       0        
Repayment of secured debt       6,320 1,580 $ 0    
Long-term debt       98,648 104,571      
Repaid value of loan when certain debt terms are met   $ 0            
Average age of collateral vessels for repayment of loan   20 years            
Amount of repayment per quarter   $ 1,580            
Percentage limit of consolidated net income for which dividends can be paid 50.00%              
Debt covenant to pay dividends or repurchase stock - Total cash and cash equivalents to total indebtedness (as a percent) 18.75%              
Key covenant - Unrestricted cash and cash equivalents minimum   $ 30,000            
Key covenant – Percentage of unrestricted cash to total indebtedness   7.50%            
Minimum working capital required   $ 0            
Maximum total indebtedness to total capitalization (as a ratio)   0.70            
Repayment of the outstanding debt                
2020       6,320        
2021       6,320        
2022       6,320        
2023       81,140        
Total debt       $ 100,100 $ 106,420      
Secured Debt | $108 Million Credit Facility | LIBOR                
Line of Credit Facility                
Reference rate   LIBOR            
Secured Debt | $108 Million Credit Facility | LIBOR | Through September 30, 2019                
Line of Credit Facility                
Applicable margin over reference rate (as a percent)   2.50%            
Secured Debt | $108 Million Credit Facility | Agreement To Purchase Ultramax And Capesize Vessels                
Line of Credit Facility                
Number of vessels committed to be acquired under purchase agreement | item   6            
Secured Debt | $108 Million Credit Facility | Agreement to Purchase Capesize Drybulk Vessels                
Line of Credit Facility                
Number of vessels committed to be acquired under purchase agreement | item   4            
Secured Debt | $108 Million Credit Facility | Agreement To Purchase Ultramax Drybulk Vessels                
Line of Credit Facility                
Number of vessels committed to be acquired under purchase agreement | item   2            
Secured Debt | Minimum | $108 Million Credit Facility                
Line of Credit Facility                
Debt covenant to pay dividends or repurchase stock - Total cash and cash equivalents $ 100,000              
Collateral security maintenance test (as a percent)   135.00%            
Secured Debt | Minimum | $108 Million Credit Facility | LIBOR | Period After September 30, 2019                
Line of Credit Facility                
Applicable margin over reference rate (as a percent)   2.25%            
Secured Debt | Maximum | $108 Million Credit Facility                
Line of Credit Facility                
Collateral security maintenance test (as a percent) 200.00%              
Secured Debt | Maximum | $108 Million Credit Facility | LIBOR | Period After September 30, 2019                
Line of Credit Facility                
Applicable margin over reference rate (as a percent)   2.75%            
v3.19.3.a.u2
DEBT - $495 Million Credit Facility (Details)
$ in Thousands
12 Months Ended
Dec. 30, 2019
USD ($)
Nov. 15, 2019
USD ($)
Nov. 05, 2019
USD ($)
Sep. 23, 2019
USD ($)
Aug. 28, 2019
USD ($)
Jul. 05, 2019
USD ($)
May 10, 2019
USD ($)
Apr. 15, 2019
USD ($)
Feb. 28, 2019
USD ($)
item
Feb. 13, 2019
Jun. 05, 2018
USD ($)
May 31, 2018
USD ($)
item
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Repayment of the outstanding debt                              
Total debt                         $ 495,824 $ 551,420  
Secured Debt | $495 Million Credit Facility                              
Line of Credit Facility                              
Maximum borrowing capacity                 $ 495,000       495,000 495,000  
Debt covenant to pay dividends or repurchase stock - Total cash and cash equivalents to total indebtedness (as a percent)     18.75%                        
Number of oldest vessels identified for sale for which debt will be paid down | item                       7      
Remaining borrowing capacity                         12,525    
Drawdowns during the period                         21,500 460,000  
Repayment of secured debt                         70,776 15,000 $ 0
Long-term debt                         384,082 430,577  
Percentage limit of consolidated net income for which dividends can be paid     50.00%                        
Collateral vessel replacement period                       120 days      
Collateral vessel replacement extension period                   180 days          
Key covenant - Unrestricted cash and cash equivalents minimum                       $ 30,000      
Key covenant – Percentage of unrestricted cash to total indebtedness                       7.50%      
Minimum restricted cash required                       $ 0      
Minimum working capital required                       $ 0      
Maximum total indebtedness to total capitalization (as a ratio)                       0.70      
Key covenant – Minimum time charters period                       24 months      
Repayment of the outstanding debt                              
2020                         63,427    
2021                         63,427    
2022                         63,427    
2023                         205,443    
Total debt                         395,724 $ 445,000  
Secured Debt | $495 Million Credit Facility | Genco Champion and Genco Challenger                              
Line of Credit Facility                              
Vessel sale proceeds utilized as a loan repayment     $ 6,880                   $ 6,880    
Collateral vessel replacement period   180 days                          
Secured Debt | $495 Million Credit Facility | Genco Cavalier                              
Line of Credit Facility                              
Vessel sale proceeds utilized as a loan repayment               $ 4,947              
Secured Debt | $460 Million Credit Facility                              
Line of Credit Facility                              
Term of facilities                       5 years      
Maximum borrowing capacity                       $ 460,000      
Number of oldest vessels identified for sale for which debt will be paid down | item                       7      
Drawdowns during the period                     $ 460,000        
Reference rate                       LIBOR      
Prepayment of amortization payment before due date           $ 15,000 $ 15,000                
Amount of periodic payment $ 14,321                            
Repaid value of loan when certain debt terms are met                       $ 0      
Average age of collateral vessels for repayment of loan                       17 years      
Secured Debt | $460 Million Credit Facility | Period after December 31, 2018                              
Line of Credit Facility                              
Amortization payments per quarter                       $ 15,000      
Secured Debt | $460 Million Credit Facility | Period upon final maturity on May 31, 2023                              
Line of Credit Facility                              
Final payment amount $ 188,049                     $ 190,000      
Secured Debt | $460 Million Credit Facility | LIBOR | Through December 31, 2018                              
Line of Credit Facility                              
Applicable margin over reference rate (as a percent)                       3.25%      
Secured Debt | $35,000 Scrubber Tranche                              
Line of Credit Facility                              
Maximum borrowing capacity   $ 34,025 35,000           $ 35,000            
Drawdowns during the period       $ 12,200 $ 9,300                    
Number of Capesize vessels for which the scrubber installation will be financed | item                 17            
Secured Debt | $35,000 Scrubber Tranche | Period To March 30, 2020                              
Line of Credit Facility                              
Minimum amount required per borrowing                 $ 5,000            
Secured Debt | $35,000 Scrubber Tranche | Through September 30, 2019                              
Line of Credit Facility                              
Applicable margin over reference rate (as a percent)                 2.50%            
Secured Debt | $35,000 Scrubber Tranche | Period After March 31, 2020                              
Line of Credit Facility                              
Term of facilities                 4 years            
Amount of periodic payment   $ 2,430             $ 2,500            
Secured Debt | Minimum | $495 Million Credit Facility                              
Line of Credit Facility                              
Debt covenant to pay dividends or repurchase stock - Total cash and cash equivalents     $ 100,000                        
Collateral security maintenance test (as a percent)                       135.00%      
Secured Debt | Minimum | $460 Million Credit Facility | LIBOR | Period after December 31, 2018                              
Line of Credit Facility                              
Applicable margin over reference rate (as a percent)                       3.00%      
Secured Debt | Minimum | $35,000 Scrubber Tranche | Period After September 30, 2019                              
Line of Credit Facility                              
Applicable margin over reference rate (as a percent)                 2.25%            
Secured Debt | Maximum | $495 Million Credit Facility                              
Line of Credit Facility                              
Collateral security maintenance test (as a percent)     200.00%                        
Secured Debt | Maximum | $460 Million Credit Facility | LIBOR | Period after December 31, 2018                              
Line of Credit Facility                              
Applicable margin over reference rate (as a percent)                       3.50%      
Secured Debt | Maximum | $35,000 Scrubber Tranche | Period To March 30, 2020                              
Line of Credit Facility                              
Percentage of scrubber costs to be financed                 90.00%            
Secured Debt | Maximum | $35,000 Scrubber Tranche | Period After September 30, 2019                              
Line of Credit Facility                              
Applicable margin over reference rate (as a percent)                 2.75%            
v3.19.3.a.u2
DEBT - $400 Million Credit Facility (Details)
$ in Thousands
12 Months Ended
Nov. 15, 2016
item
Nov. 14, 2016
USD ($)
Nov. 10, 2016
USD ($)
item
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
item
Line of Credit Facility            
Payment of PIK interest       $ 0 $ 5,341 $ 0
Secured Debt | $400 Million Credit Facility            
Line of Credit Facility            
Maximum borrowing capacity     $ 400,000   400,000 $ 400,000
Number of prior credit facilities refinanced | item 6          
Number of vessels mortgaged | item     45      
Number of vessels sold | item           5
Drawdowns during the period   $ 400,000        
PIK interest (as a percent)     1.50%      
Maximum total indebtedness to total capitalization (as a ratio)     0.70      
Minimum working capital required     $ 0      
Long-term debt       0 0  
Repayments for the excess cash flow sweep       0 15,428  
Repayments of debt, including PIK       $ 0 404,941  
Repayments of Secured Debt         399,600 $ 400
Payment of PIK interest         $ 5,341  
Secured Debt | $400 Million Credit Facility | Through December 31, 2018            
Line of Credit Facility            
Minimum cash balance required per vessel owned     $ 250      
Cash flow sweep (as a percent)     100.00%      
Amortization payments per quarter     $ 100      
Secured Debt | $400 Million Credit Facility | From March 31, 2019 through December 31, 2020            
Line of Credit Facility            
Amortization payments per quarter     7,610      
Secured Debt | $400 Million Credit Facility | From March 31, 2021 through September 30, 2021            
Line of Credit Facility            
Amortization payments per quarter     18,571      
Secured Debt | $400 Million Credit Facility | Period Upon Final Maturity On November 15 2021            
Line of Credit Facility            
Amortization payments per quarter     $ 282,605      
Secured Debt | $400 Million Credit Facility | From June 30, 2018 to December 30, 2018            
Line of Credit Facility            
Collateral security maintenance test (as a percent)     105.00%      
Secured Debt | $400 Million Credit Facility | From December 31, 2018 to December 30, 2020            
Line of Credit Facility            
Collateral security maintenance test (as a percent)     115.00%      
Cash flow sweep (as a percent)     75.00%      
Prepayment under cash sweep required     $ 0      
Threshold initial aggregate prepayments limit for prepayment under cash sweep     $ 10,000      
Secured Debt | $400 Million Credit Facility | After December 30, 2020            
Line of Credit Facility            
Collateral security maintenance test (as a percent)     135.00%      
Secured Debt | $400 Million Credit Facility | After December 31, 2020            
Line of Credit Facility            
Cash flow sweep option one (as a percent)     50.00%      
Vessel age repayment period     15 years      
Secured Debt | $400 Million Credit Facility | From January 1, 2019 To December 31, 2019            
Line of Credit Facility            
Minimum cash balance required per vessel owned     $ 400      
Secured Debt | $400 Million Credit Facility | After January 1, 2020            
Line of Credit Facility            
Minimum cash balance required per vessel owned     $ 700      
Secured Debt | $400 Million Credit Facility | LIBOR            
Line of Credit Facility            
Reference rate     three-month LIBOR      
Applicable margin over reference rate (as a percent)     3.75%      
v3.19.3.a.u2
DEBT - $98M Credit Facility (Details) - Line of Credit Facility - $98 Million Credit Facility
12 Months Ended
Nov. 10, 2015
USD ($)
Nov. 04, 2015
USD ($)
item
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Nov. 15, 2016
USD ($)
Line of Credit Facility            
Number of wholly owned subsidiaries   13        
Maximum borrowing capacity   $ 98,000,000   $ 98,000,000 $ 98,000,000 $ 98,000,000
Drawdowns during the period $ 98,271,000          
Repayment of line of credit facility     $ 0 93,939,000 $ 1,332,000  
Fixed amortization payment for the first two years   $ 0        
Period without fixed amortization schedule   2 years        
Amount of periodic payment   $ 2,500,000        
Maximum collateral required for prepayment of loan (as a percent)   182.00%        
Number of collateral vessels | item   13        
Long-term debt     $ 0 $ 0    
Minimum cash required to be maintained by each collateralized vessel           $ 750,000
Collateral security maintenance test (as a percent)           140.00%
LIBOR            
Line of Credit Facility            
Reference rate   three-month LIBOR        
Applicable margin over reference rate for interest payable   6.125%        
Minimum            
Line of Credit Facility            
Loan repayment requirement to have the ability to pay dividends after December 31, 2018   $ 25,000,000        
v3.19.3.a.u2
DEBT - 2014 Term Loan (Details) - Secured Debt - 2014 Term Loan Facilities
$ in Thousands
12 Months Ended
Oct. 08, 2014
USD ($)
installment
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Nov. 15, 2016
Line of Credit Facility          
Term of facilities 10 years        
Maximum facility amount of delivered cost per vessel (as a percent) 60.00%        
Maximum facility amount of delivered cost per vessel $ 16,800        
Maximum facility amount of fair market value per vessel at delivery (as a percent) 60.00%        
Percentage of outstanding principal plus interest insured 95.00%        
Number of semi-annual installments in which the credit facility is to be repaid | installment 20        
Amount due per installment (as a percent) 4.16%        
Balloon payment of facility amount due at maturity (as a percent) 16.67%        
Repayment of secured debt   $ 0 $ 25,544 $ 2,763  
Long-term debt   $ 0 $ 0    
LIBOR          
Line of Credit Facility          
Reference rate three or six-month LIBOR        
Applicable margin over reference rate (as a percent) 2.50%        
Baltic Hornet          
Line of Credit Facility          
Maximum borrowing capacity $ 16,800        
Period after latest vessel delivery date for first periodic repayment 6 months        
Baltic Wasp          
Line of Credit Facility          
Maximum borrowing capacity $ 16,800        
Period after latest vessel delivery date for first periodic repayment 6 months        
From December 31, 2017 To June 29, 2018          
Line of Credit Facility          
Collateral security maintenance test (as a percent)         100.00%
From June 30, 2018 to December 30, 2018          
Line of Credit Facility          
Collateral security maintenance test (as a percent)         105.00%
From December 31, 2018 To December 30, 2019          
Line of Credit Facility          
Collateral security maintenance test (as a percent)         115.00%
From December 31, 2019 To End Date of Facilities          
Line of Credit Facility          
Collateral security maintenance test (as a percent)         135.00%
v3.19.3.a.u2
DEBT - Interest Rates (Details) - USD ($)
$ in Thousands
1 Months Ended 12 Months Ended
Sep. 21, 2005
Sep. 30, 2015
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Interest rates on debt            
Effective Interest Rate (as a percent)     5.31% 5.71% 5.29%  
Letter of credit            
Restricted cash, non-current     $ 315 $ 315 $ 23,233 $ 27,426
Minimum            
Interest rates on debt            
Range of interest rates (excluding unused commitment fees)     4.05% 3.83% 3.36%  
Maximum            
Interest rates on debt            
Range of interest rates (excluding unused commitment fees)     5.76% 8.43% 7.82%  
Letter of credit            
Letter of credit            
Fee on letter of credit (as a percent) 1.00% 1.375% 1.375% 1.375%    
Amount of letters outstanding     $ 300 $ 300    
Restricted cash, non-current     $ 315 $ 315    
Letter of credit | Minimum            
Letter of credit            
Notice period for cancellation of line of credit     30 days      
v3.19.3.a.u2
FAIR VALUE OF FINANCIAL INSTRUMENTS - RECURRING (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Feb. 28, 2019
Dec. 31, 2018
Aug. 14, 2018
Dec. 31, 2017
Nov. 15, 2016
Nov. 10, 2016
Nov. 04, 2015
Fair value of financial instruments                
Floating rate debt $ 495,824   $ 551,420          
Secured Debt | $495 Million Credit Facility                
Fair value of financial instruments                
Floating rate debt 395,724   445,000          
Face amount of term loan facility 495,000 $ 495,000 495,000          
Secured Debt | $108 Million Credit Facility                
Fair value of financial instruments                
Floating rate debt 100,100   106,420          
Face amount of term loan facility 108,000   108,000 $ 108,000        
Secured Debt | $400 Million Credit Facility                
Fair value of financial instruments                
Face amount of term loan facility     400,000   $ 400,000   $ 400,000  
Line of Credit Facility | $98 Million Credit Facility                
Fair value of financial instruments                
Face amount of term loan facility     98,000   $ 98,000 $ 98,000   $ 98,000
Carrying Value                
Fair value of financial instruments                
Cash and cash equivalents 155,889   197,499          
Restricted cash 6,360   5,262          
Floating rate debt 495,824   551,420          
Fair value                
Fair value of financial instruments                
Cash and cash equivalents 155,889   197,499          
Restricted cash 6,360   5,262          
Floating rate debt $ 495,824   $ 551,420          
v3.19.3.a.u2
FAIR VALUE OF FINANCIAL INSTRUMENTS - NONRECURRING (Details) - Fair Value, Measurements, Nonrecurring
$ in Thousands
12 Months Ended
Dec. 31, 2019
USD ($)
item
Dec. 31, 2018
USD ($)
item
Dec. 31, 2017
item
Fair value of financial instruments      
Number of vessels written down as part of impairment | item 5 10 6
Level 3      
Fair value of financial instruments      
Financial assets $ 0 $ 0  
Financial liabilities $ 0 $ 0  
v3.19.3.a.u2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
PREPAID EXPENSES AND OTHER CURRENT ASSETS    
Vessel stores $ 638 $ 597
Capitalized contract costs 1,952 2,289
Prepaid items 2,870 3,426
Insurance receivable 2,039 851
Advance to agents 1,162 1,109
Other 1,388 2,177
Total prepaid expenses and other current assets $ 10,049 $ 10,449
v3.19.3.a.u2
FIXED ASSETS (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
FIXED ASSETS    
Total costs $ 8,130 $ 3,571
Less: accumulated depreciation and amortization (2,154) (1,281)
Total fixed assets, net 5,976 2,290
Vessel equipment    
FIXED ASSETS    
Total costs 7,288 2,873
Furniture and fixtures    
FIXED ASSETS    
Total costs 467 462
Leasehold improvements    
FIXED ASSETS    
Total costs 100  
Computer equipment    
FIXED ASSETS    
Total costs $ 275 $ 236
v3.19.3.a.u2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
ACCOUNTS PAYABLE AND ACCRUED EXPENSES.    
Accounts payable $ 26,040 $ 15,110
Accrued general and administrative expenses 4,105 4,298
Accrued vessel operating expenses 19,459 9,735
Total accounts payable and accrued expenses $ 49,604 $ 29,143
v3.19.3.a.u2
VOYAGE REVENUE (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Jan. 01, 2018
Revenue from Time Charters                        
Retained deficit $ 743,257       $ 687,272       $ 743,257 $ 687,272    
Income statement                        
Lease revenue                 108,096 168,392 $ 181,249  
Spot market voyage revenue                 281,400 199,130 28,449  
Revenues                 389,496 367,522 209,698  
Voyage                        
Income statement                        
Revenues $ 108,705 $ 103,776 $ 83,550 $ 93,464 $ 112,185 $ 92,263 $ 86,157 $ 76,916 389,496 367,522 209,698  
Profit Sharing                        
Income statement                        
Revenues                 $ 0 $ 0 $ 2,325  
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606                        
Revenue from Time Charters                        
Retained deficit                       $ 659
v3.19.3.a.u2
LEASES - Narrative (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Jun. 14, 2019
Apr. 04, 2011
Jun. 30, 2019
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Jan. 17, 2019
Leases              
Impairment of right-of-use asset     $ 223 $ 223      
Sublease income       72 $ 0 $ 0  
Total lease cost       1,884      
Period from July 26, 2019 to September 29, 2025              
Leases              
Free base rental period of the sublease 4 months 15 days            
Period from December 10, 2019 to September 29, 2025              
Leases              
Monthly base sublease income $ 102            
Lease agreement entered into April 2011              
Leases              
Lease term   7 years          
Obligation of sublessor towards the cost of alterations of office space   $ 472          
Lease agreement entered into April 2011 | Period from October 1, 2018 to April 30, 2023              
Leases              
Monthly rental payment       186      
Lease agreement entered into April 2011 | Period from May 1, 2023 to September 30, 2025              
Leases              
Monthly rental payment       $ 204      
Sub Sublease Agreement | Period November 1, 2011 until May 31, 2015              
Leases              
Monthly rental payment   82          
Sub Sublease Agreement | Period after May 31, 2015 until April 30, 2018              
Leases              
Monthly rental payment   $ 90          
Lease Agreement entered into January 2019 | Singapore              
Leases              
Lease term             3 years
v3.19.3.a.u2
LEASES - Balance Sheet Information (Details)
$ in Thousands
Dec. 31, 2019
USD ($)
Operating lease  
Operating lease right-of-use assets $ 8,241
Current operating lease liabilities 1,677
Long-term operating lease liabilities 9,826
Present value of lease liabilities $ 11,503
Weighted average remaining lease term (years) 5 years 9 months
Weighted average discount rate 5.15%
v3.19.3.a.u2
LEASES - Operating Lease Liabilities (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Operating Lease Liabilities - ASC 842      
2020 $ 2,230    
2021 2,230    
2022 2,230    
2023 2,378    
2024 2,453    
Thereafter 1,839    
Total lease payments 13,360    
Less: Imputed interest (1,857)    
Present value of lease liabilities 11,503    
Operating cash flow payments $ 2,230    
Operating Lease Liabilities - ASC 840      
2019   $ 2,230  
2020   2,230  
2021   2,230  
2022   2,230  
2023   2,378  
Thereafter   4,292  
Total lease payments   15,590  
Deferred rent   3,468  
Rent expense   $ 1,808 $ 1,808
v3.19.3.a.u2
COMMITMENTS AND CONTINGENCIES (Details)
$ in Thousands
6 Months Ended 12 Months Ended
Jan. 17, 2020
item
Dec. 21, 2018
item
Dec. 31, 2018
USD ($)
item
Dec. 31, 2019
USD ($)
item
Feb. 28, 2019
USD ($)
Purchase commitment          
Vessel assets     $ 1,344,870 $ 1,273,861  
Secured Debt | $495 Million Credit Facility          
Purchase commitment          
Maximum borrowing capacity     $ 495,000 495,000 $ 495,000
Purchase Agreements for BWTS          
Purchase commitment          
Number of vessels to receive ballast water treatments systems | item     42    
Vessel assets     $ 1,804 $ 12,783  
Purchase Agreement of BWTS for Capesize Vessels          
Purchase commitment          
BWTS purchase price     900    
Purchase Agreement of BWTS for Supramax Vessels          
Purchase commitment          
BWTS purchase price     600    
Purchase Agreement of BWTS for Handysize Vessels          
Purchase commitment          
BWTS purchase price     500    
Scrubber Installation Agreements          
Purchase commitment          
Number of Capesize vessels to receive scrubber installations | item   17      
Number of completed scrubber installations | item 1     16  
Vessel assets     $ 428 $ 41,270  
v3.19.3.a.u2
SAVINGS PLAN (Details) - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
SAVINGS PLAN      
Employer's dollar matching contribution for each employee up to 6% to the 401(k) plan $ 1.17    
Employer's matching contribution (as a percent) 6.00%    
Employer's matching contribution $ 399,000 $ 380,000 $ 385,000
v3.19.3.a.u2
STOCK-BASED COMPENSATION - 2014 MIP (Details) - 2014 MIP Plan
12 Months Ended
Aug. 07, 2014
USD ($)
tranche
$ / shares
shares
Jul. 09, 2014
item
shares
Dec. 31, 2019
USD ($)
$ / shares
shares
Dec. 31, 2018
USD ($)
shares
Dec. 31, 2017
USD ($)
$ / shares
shares
Nov. 05, 2019
$ / shares
Stock Awards            
Aggregate number of shares of common stock available for awards | shares   966,806        
Percentage of Common Stock outstanding ( In percent)   1.80%        
Vesting period of awards 3 years          
Number of Shares            
Balance at the beginning of the period (in shares) | shares         9,255  
Vested (in shares) | shares         (9,255)  
Weighted Average Fair Value            
Balance at the beginning of the period (in dollars per share)         $ 200.00  
Vested (in dollars per share)         $ 200.00  
Additional disclosures            
Total fair value of shares vested | $     $ 0 $ 0 $ 106,000  
Unrecognized compensation cost related to nonvested stock awards            
Unrecognized compensation cost | $     $ 0 $ 0    
General and Administrative Expense            
Stock Awards            
Amortization expense | $         $ 368,000  
Warrants            
Stock Awards            
Number of tranches | tranche 3          
Number of tiers of MIP Warrants | item   3        
Volatility rate ( as a percent) 43.91%          
Volatility rate term 6 years          
Risk-free interest rate ( as a percent) 1.85%          
Dividend rate ( as a percent) 0.00%          
Total fair value of outstanding awards upon emergence from bankruptcy | $ $ 54,436,000          
Percentage of warrant vest for anniversaries of the grant date 33.33%          
Vesting period of awards 3 years          
Number of Shares            
Balance at the beginning of the period (in shares) | shares         713,122  
Exercisable (in shares) | shares         (713,122)  
Weighted Average Exercise price            
Outstanding at the beginning of the period (in dollars per share)         $ 303.12  
Exercisable (in dollars per share)         303.12  
Weighted Average Fair Value            
Balance at the beginning of the period (in dollars per share)         6.36  
Exercisable (in dollars per share)         $ 6.36  
Number of warrants | shares     8,557,461      
Exercisable (in dollars per share)     $ 288.99      
Weighted average remaining contractual life, exercisable     7 months 6 days      
Additional disclosures            
Warrants outstanding (in shares) | shares     8,557,461 8,557,461    
Unrecognized compensation cost related to nonvested stock awards            
Unrecognized compensation cost | $     $ 0 $ 0    
Warrants | General and Administrative Expense            
Stock Awards            
Amortization expense | $         $ 902,000  
Warrants | $247.02 Warrants            
Stock Awards            
Aggregate number of shares of common stock available for awards | shares 238,066          
Exercise price per share, as adjusted by special dividend           $ 247.01511
Fair value of warrant (in dollars per share) $ 7.22          
Warrants | $273.90 Warrants            
Stock Awards            
Aggregate number of shares of common stock available for awards | shares 246,701          
Exercise price per share, as adjusted by special dividend           273.89981
Fair value of warrant (in dollars per share) $ 6.63          
Warrants | $325.95 Warrants            
Stock Awards            
Aggregate number of shares of common stock available for awards | shares 370,979          
Exercise price per share, as adjusted by special dividend           $ 325.95317
Fair value of warrant (in dollars per share) $ 5.63          
v3.19.3.a.u2
STOCK-BASED COMPENSATION - 2015 EIP Stock Options and Other (Details) - 2015 EIP Plan - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Nov. 05, 2019
Mar. 04, 2019
Feb. 27, 2018
Mar. 23, 2017
Oct. 15, 2016
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Jun. 26, 2015
Stock options                  
Aggregate number of shares of common stock available for awards       2,750,000         400,000
Nonemployee Directors                  
Additional disclosures                  
Maximum annual limit for grants (in shares)       500,000          
Other Individuals                  
Additional disclosures                  
Maximum annual limit for grants (in shares)       1,000,000          
Stock Options                  
Stock options                  
Vesting percentage of awards   33.33% 33.33%            
Vesting period   3 years 3 years            
Unrecognized compensation cost                  
Unamortized compensation cost           $ 590      
Future amortization of stock based compensation                  
2020           431      
2021           142      
2022           $ 17      
Number of Options                  
Outstanding at beginning of period (in shares)           166,942 88,667    
Granted (in shares)   240,540 122,608     240,540 122,608 133,000  
Exercisable (in shares)           (85,203) (44,333) (44,333)  
Outstanding at end of period (in shares)           322,279 166,942 88,667  
Weighted Average Exercise Price                  
Outstanding at beginning of period (in dollars per share)           $ 13.01 $ 11.13    
Granted (in dollars per share)           8.33 13.69 $ 11.13  
Exercisable (in dollars per share)           12.36 11.13 11.13  
Outstanding at end of period (in dollars per share)           9.41 13.01 11.13  
Weighted Average Fair Value                  
Outstanding at beginning of period (in dollars per share)           7.25 6.41    
Granted (in dollars per share)   $ 3.76 $ 7.55     3.76 7.55 6.41  
Exercisable (in dollars per share)           6.96 6.41 6.41  
Outstanding at end of period (in dollars per share)           4.72 $ 7.25 $ 6.41  
Weighted Average Exercise Price Of Outstanding Options           $ 10.11      
Options Outstanding, Weighted Average Remaining Contractual Life           4 years 11 months 1 day      
Options Exercisable, Number of options           173,869      
Options Exercisable, Weighted Average Exercise Price           $ 11.41      
Options Exercisable, Weighted Average Remaining Contractual Life           3 years 5 months 12 days      
Aggregate fair value   $ 904 $ 926            
Stock options outstanding - nonvested and exercisable           496,148 255,608    
Assumptions and Methodology                  
Weighted average volatility rate (as a percent)   55.23% 71.94%            
Risk-free interest rate ( as a percent)   2.49% 2.53%            
Dividend rate ( as a percent)   0.00% 0.00%            
Expected life (in years)   4 years 4 years            
Stock Options | General and Administrative Expense                  
Stock options                  
Amortization expense           $ 850 $ 731 $ 512  
Stock Options | Exercise Price - $13.365                  
Weighted Average Exercise Price                  
Granted (in dollars per share) $ 13.365                
Stock Options | Exercise Price - $8.065                  
Weighted Average Exercise Price                  
Granted (in dollars per share) 8.065                
Stock Options | John C. Wobensmith                  
Stock options                  
Vesting percentage of awards       33.33%          
Vesting period         3 years        
Number of Options                  
Granted (in shares)       133,000          
Weighted Average Exercise Price                  
Granted (in dollars per share) $ 10.805                
Weighted Average Fair Value                  
Granted (in dollars per share)       $ 6.41          
Aggregate fair value       $ 853          
Assumptions and Methodology                  
Weighted average volatility rate (as a percent)       79.80%          
Risk-free interest rate ( as a percent)       1.68%          
Dividend rate ( as a percent)       0.00%          
Expected life (in years)       3 years 9 months 11 days          
v3.19.3.a.u2
STOCK-BASED COMPENSATION - 2015 EIP Restricted Stock Units (Details) - 2015 EIP Plan - Restricted Stock Units - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
May 15, 2019
Mar. 04, 2019
May 15, 2018
Feb. 27, 2018
May 17, 2017
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Stock Awards                
Number of common shares outstanding in respect of RSUs           326,247 216,304  
Vesting period of awards           3 years    
Number of Shares                
Balance at the beginning of the period (in shares)           149,170 220,129 66,666
Granted (in shares) 29,580 106,079 14,268 37,436 25,197 140,914 51,704 317,595
Vested (in shares) (14,268)   (25,197)     (127,988) (122,663) (164,132)
Balance at the end of the period (in shares)           162,096 149,170 220,129
Weighted Average Fair Value                
Balance at the beginning of the period (in dollars per share)           $ 12.42 $ 11.01 $ 5.10
Granted (in dollars per share)           8.50 14.84 11.05
Vested (in dollars per share)           12.10 10.92 8.68
Balance at the end of the period (in dollars per share)           $ 9.26 $ 12.42 $ 11.01
Weighted-average remaining contractual life           1 year 8 months 1 day    
Additional disclosures                
Total fair value of shares vested           $ 1,235 $ 1,694 $ 1,858
Unrecognized compensation cost related to nonvested stock awards                
Unrecognized compensation cost           $ 613    
Weighted-average period for recognition of unrecognized compensation cost           1 year 8 months 1 day    
General and Administrative Expense                
Additional disclosures                
Recognized nonvested stock amortization expense           $ 1,207 $ 1,489 $ 2,241
Vested RSUs                
Number of Shares                
Number of shares vested           422,223    
Weighted Average Grant Date Price, Vested           $ 11.47    
Eugene Davis                
Number of Shares                
Granted (in shares)         18,234      
v3.19.3.a.u2
STOCK-BASED COMPENSATION - 2015 EIP Restricted Stock (Details) - 2015 EIP Plan - Restricted Stock - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Stock Awards      
Vesting period of awards 3 years    
Number of Shares      
Balance at the beginning of the period (in shares)   6,802 13,605
Vested (in shares)   (6,802) (6,803)
Balance at the end of the period (in shares)     6,802
Weighted Average Fair Value      
Balance at the beginning of the period (in dollars per share)   $ 5.20 $ 5.20
Vested (in dollars per share)   $ 5.20 5.20
Balance at the end of the period (in dollars per share)     $ 5.20
Additional disclosures      
Total fair value of shares vested   $ 60 $ 71
General and Administrative Expense      
Additional disclosures      
Recognized nonvested stock amortization expense   $ 11 $ 30
v3.19.3.a.u2
UNAUDITED QUARTERLY RESULTS OF OPERATIONS (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
UNAUDITED QUARTERLY RESULTS OF OPERATIONS                      
Revenues                 $ 389,496 $ 367,522 $ 209,698
Operating (loss) income $ 7,560 $ (7,772) $ (27,309) $ (882) $ 25,972 $ 12,089 $ 10,851 $ (48,398) (28,403) 516 (29,615)
Net (loss) income $ 882 $ (14,591) $ (34,476) $ (7,801) $ 18,283 $ 5,708 $ (1,120) $ (55,813) $ (55,985) $ (32,940) $ (58,725)
Net (loss) earnings per share - basic (1) $ 0.02 $ (0.35) $ (0.83) $ (0.19) $ 0.44 $ 0.14 $ (0.03) $ (1.61) $ (1.34) $ (0.86) $ (1.71)
Net (loss) earnings per share - diluted (1) 0.02 $ (0.35) $ (0.83) $ (0.19) $ 0.44 $ 0.14 $ (0.03) $ (1.61) (1.34) $ (0.86) $ (1.71)
Dividends declared per share $ 0.50               $ 0.50    
Weighted average common shares outstanding-basic 41,832,942 41,749,200 41,742,301 41,726,106 41,704,296 41,618,187 35,516,058 34,577,990 41,762,893 38,382,599 34,242,631
Weighted average common shares outstanding-diluted 41,989,553 41,749,200 41,742,301 41,726,106 41,792,956 41,821,008 35,516,058 34,577,990 41,762,893 38,382,599 34,242,631
Voyage                      
UNAUDITED QUARTERLY RESULTS OF OPERATIONS                      
Revenues $ 108,705 $ 103,776 $ 83,550 $ 93,464 $ 112,185 $ 92,263 $ 86,157 $ 76,916 $ 389,496 $ 367,522 $ 209,698
v3.19.3.a.u2
SUBSEQUENT EVENTS (Details)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Feb. 25, 2020
USD ($)
$ / shares
shares
Feb. 24, 2020
USD ($)
item
Feb. 03, 2020
USD ($)
May 15, 2019
shares
Mar. 04, 2019
shares
May 15, 2018
shares
Feb. 27, 2018
shares
May 17, 2017
shares
Dec. 31, 2019
USD ($)
$ / shares
Dec. 31, 2019
USD ($)
$ / shares
shares
Dec. 31, 2018
USD ($)
shares
Dec. 31, 2017
USD ($)
shares
Feb. 28, 2019
USD ($)
Dec. 31, 2016
USD ($)
Subsequent Events                            
Dividends declared per share of common stock | $ / shares                 $ 0.50 $ 0.50        
Restricted cash                 $ 6,045 $ 6,045 $ 4,947 $ 7,234   $ 8,242
Secured Debt | $495 Million Credit Facility                            
Subsequent Events                            
Maximum borrowing capacity                 $ 495,000 $ 495,000 $ 495,000   $ 495,000  
2015 EIP Plan | Restricted Stock Units                            
Subsequent Events                            
Granted (in shares) | shares       29,580 106,079 14,268 37,436 25,197   140,914 51,704 317,595    
Vesting period of awards                   3 years        
2015 EIP Plan | Stock Options                            
Subsequent Events                            
Options to purchase (in shares) | shares         240,540   122,608     240,540 122,608 133,000    
Vesting percentage of awards         33.33%   33.33%              
Vesting period of awards         3 years   3 years              
Subsequent Event                            
Subsequent Events                            
Number of vessels to be disposed | item   10                        
Dividends declared per share of common stock | $ / shares $ 0.175                          
Dividend payable $ 7,400                          
Subsequent Event | Genco Charger                            
Subsequent Events                            
Sale of assets   $ 5,150 $ 5,150                      
Broker commission (as a percent)   1.00% 1.00%                      
Subsequent Event | Secured Debt | $495 Million Credit Facility | Genco Charger                            
Subsequent Events                            
Restricted cash   $ 3,471                        
Period for which sales proceeds from vessels will remain as restricted cash   180 days                        
Subsequent Event | 2015 EIP Plan | RSUs and Stock Options                            
Subsequent Events                            
Vesting percentage of awards 33.33%                          
Vesting period of awards 3 years                          
Subsequent Event | 2015 EIP Plan | Restricted Stock Units                            
Subsequent Events                            
Granted (in shares) | shares 173,749                          
Subsequent Event | 2015 EIP Plan | Stock Options                            
Subsequent Events                            
Options to purchase (in shares) | shares 344,568                          
Exercise price (in dollars per share) | $ / shares $ 7.06