Dubai – Mubasher: Gulf Navigation Holding (GNH) has logged accumulated losses that reached AED 463.121 million as of 31 March 2020, equivalent to 45% of the company's capital.

The accumulated losses are caused by a decline in vessels' revenues and a rise in net finance cost, according to the company's disclosure to the Dubai Financial Market (DFM) on Wednesday.

To address the accumulated losses, the group is planning to issue Islamic non-convertible Sukuk worth AED 125 million through a private placement.

The proceeds of the issuance will be used in settling overdue liabilities, repaying overdue debt, and meeting working capital requirements.

In addition, the group will operate its vessels at profitable rates.