ATHENS, Greece, July 11, 2016 /PRNewswire/ -- Box Ships Inc.
(OTCQX: TEUFF), a global shipping company specializing in the
transportation of containers, today released a letter to
shareholders.
To our shareholders:
Now that we are halfway through 2016 I want to update you on
recent events, explain the actions we are taking at this difficult
time, and give you some thoughts about moving forward.
The famous inventor Thomas Edison
once said, "Genius is one percent inspiration and ninety-nine
percent perspiration."
Steering Box Ships through a long, cyclical downturn is just the
same: a lot of hard work. We need to continue to work
hard, stick to our plans, and ultimately get through these hard
times.
Like you, I have watched as maritime shipping has been mired in
a long downturn. The entire container shipping sector has suffered
and, along with the dry bulk and LNG sectors, we are at cyclical
lows.
I have seen these times before. I have been in marine shipping,
as a shipping company founder, executive and technical
superintendent supervising vessels for other shipping companies,
for more than 35 years. These highs and lows are a part of
life and we understand the classically cyclical nature of the
business. Times like these are not only financially
difficult, they are humbling as well.
At Box Ships, we are doing the prudent thing. We are managing
through the downturn, preserving cash liquidity by reducing
operating and administrative costs significantly and working
closely with our lenders. In recent weeks we renegotiated our loans
and deferred loan instalment payments until Q1 2017, positioning
ourselves to be able to move forward when times change -- which
they will.
It's difficult to predict exactly when conditions will improve.
The analysts who follow shipping are quite often wrong.
Experience tells us that change often comes when you least expect
it. And when it comes, things can change quickly. If
necessary, we have approval from the Board of Directors to initiate
a reverse stock split and move forward when market conditions
change for the better.
Today, as we enter the second half of 2016, our management team
believes better days are ahead. Market sentiment has clearly
shifted in recent months, away from the depressed views back in
January and February.
I can promise you we will be ready when the containership sector
begins to rebound. If I didn't think this was a battle we
could win, I wouldn't be in the fight. I am a significant Box
Ships shareholder myself. Our interests are aligned.
We are optimistic about the future and are positioned to exploit
any opportunities. We appreciate your ongoing support and
trust, and hope you will continue to have faith in our leadership
throughout the remaining months of 2016 and into the future.
Sincerely,
Michael Bodouroglou
Founder, Chairman and Chief Executive Officer
Forward-Looking Statements
Certain statements in this
press release are "forward-looking statements" within the meaning
of the Private Securities Litigation Act of 1995. These
forward-looking statements are based on our current expectations
and beliefs and are subject to a number of risk factors and
uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements. Such risks
and uncertainties include, without limitation, the strength of
world economies and currencies, general market conditions,
including fluctuations in charter rates and vessel values, changes
in demand for container shipping capacity, changes in our operating
expenses, including bunker prices, dry-docking and insurance costs,
the market for our vessels, availability of financing and
refinancing, charter counterparty performance, ability to obtain
financing and comply with covenants in such financing arrangements,
changes in governmental rules and regulations or actions taken by
regulatory authorities, potential liability from pending or future
litigation, general domestic and international political
conditions, potential disruption of shipping routes due to
accidents or political events, vessels breakdowns and instances of
off-hires and other factors. Box Ships does not undertake an
obligation to update or revise any forward-looking statement.
Investors should read the risk factors set forth in the Annual
Report on Form 20-F for the year ended December 31, 2015, as filed with the Securities
and Exchange Commission (the "SEC") on April
27, 2016 and future periodic reports filed with the SEC on
or after the date hereof. All of Box Ships' forward-looking
statements are expressly qualified by all such risk factors and
other cautionary statements. The information set forth herein
speaks only as of the date hereof.
Contacts
Box Ships Inc.
+30 210-891-4600
ir@box-ships.com
DresnerAllenCaron
Michael
Mason (Investors)
mmason@dresnerallencaron.com
(212) 691-8087
Len Hall (Media)
lhall@dresnerallencaron.com
(949) 474-4300
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visit:http://www.prnewswire.com/news-releases/box-ships-issues-letter-to-shareholders-300295913.html
SOURCE Box Ships Inc.