Jason facing the end

Jason Shipping has reported a net loss of $3.8m for the first quarter, an improvement on the loss of $6.8m posted for the final period of 2011. Nevertheless, while the company’s cash position is at present “satisfactory”, according to the board of directors, the equity position is negative. The company divested Eitzen Gas last year on “satisfactory terms” and during the first quarter sold its shares in Eitzen Maritime Services for NKr 5.3m. The board says there is sufficient cash to continue operations until January 2013, so long as a term loan that falls due in July 2012 can be converted to an on-demand loan.

Jason’s sole major investment is its 34% holding in Eitzen Chemical, which is performing badly in a weak market. Eitzen Chemical is looking to restructure its balance sheet, possibly through the issuance of new shares, although Jason Shipping says it is unable to take part in any such new financing.