Gulf Navigation Holding announced receiving an approval from the Securities and Commodities Authority (SCA) to issue convertible bonds worth $60 million.

In its statement to the Dubai Financial Market (DFM), Gulf Navigation stated that this bond issuance will go to settling the Company’s debts.

Moreover, the Board of Directors has delegated the Chairman and the Steering Committee to negotiate the issuance with creditors.

It is worth highlighting that Gulf Navigation had previously received SCA’s approval to cut its capital from AED 1.66 billion to AED 551.67 million.

Back in January, the Company’s extraordinary general meeting (EGM) had decided not to liquidate the Company and had approved a capital cut amounting to AED 1.1 billion.

Gulf Navigation had reported a net profit of AED 3.16 million during the second quarter of 2014 compared to a net loss of AED 10 million during the second quarter of 2013.

Gulf Navigation topped declining shares on Wednesday, falling 4.87% to AED 0.430.