Consolidated Statement of Operations

(U.S. Dollars in Thousands, Except for Earnings Per Share and Share Data)


	Predecessor					Predecessor
	Period from					Period from
	January 1 to					January 1 to
	July 9,					July 9,
	2014					2014
	As Reported		Adjustment			As Restated
Loss before reorganization items, net	$	(96,795)		—		$	(96,795)
Reorganization items, net		882,167		(1,797,807)	(a)		(915,640)

(Loss) income before income taxes		785,372		(1,797,807)			(1,012,435)
Income tax expense		(815)		—			(815)
Net (loss) income		784,557		(1,797,807)			(1,013,250)
Less: Net loss attributable to noncontrolling interest		(8,734)		(53,367)	(b)		(62,101)
Net (loss) income attributable to Genco Shipping & Trading Limited	$	793,291	$	(1,744,440)		$	(951,149)

Net (loss) income per share-basic	$	18.21		N/A		$	(21.83)
Net (loss) income per share-diluted	$	18.21		N/A		$	(21.83)
Weighted average common shares outstanding-basic		43,568,942		N/A			43,568,942
Weighted average common shares outstanding-diluted		43,568,942		N/A			43,568,942
Dividends declared per share	$	—		N/A		$	—

(a)

The adjustment is the result of errors in the Company’s prior accounting for the following transactions associated with the application of fresh—start accounting:


	Adjustment
Discharge of Predecessor equity (1)	$	(829,974)
Issuance of Successor equity (2)		(1,133,900)
Recording of goodwill in fresh-start accounting (3)		166,067
Total	$	(1,797,807)

(1)

The accounting consequences related to the discharge of Predecessor equity were previously reported as a component in the computation of “Reorganization items, net”. The adjustment is to exclude the accounting consequences related to the discharge of Predecessor equity from the computation of “Reorganization items, net”.

(2)

The accounting consequences related to the issuance of Successor equity were previously excluded as a component in the computation of “Reorganization items, net”. The adjustment is to include from the accounting consequences related to the issuance of Successor equity in the computation of “Reorganization items, net”.

(3)

The accounting consequences related to the recognition of goodwill were previously excluded as a component in the computation of “Reorganization items, net”. The adjustment is to include the accounting consequences related to the establishment of goodwill in the computation of “Reorganization items, net”.

(b)

The adjustment is the result of errors in the Company’s prior accounting for the consequences to non-controlling interests of certain transactions associated with the application of fresh-start accounting.

Consolidated Statement of Comprehensive Loss

(U.S. Dollars in Thousands)


	Predecessor				Predecessor
	Period from				Period from
	January 1 to				January 1 to
	July 9,				July 9,
	2014				2014
	As Reported		Adjustment		As Restated
Net (loss) income	$	784,557	$	(1,797,807)		(1,013,250)

Change in unrealized (loss) gain on investments		(25,766)		—		(25,766)
Unrealized gain on cash flow hedges, net		2,401		—		2,401
Other comprehensive (loss) income		(23,365)		0		(23,365)

Comprehensive (loss) income		761,192		(1,797,807)		(1,036,615)
Less: Comprehensive loss attributable to noncontrolling interest		(8,734)		(53,367)		(62,101)
Comprehensive (loss) income attributable to Genco Shipping & Trading Limited	$	769,926	$	(1,744,440)	$	(974,514)

In addition, the effect of correcting for these errors resulted in the restatement of:

The previously reported components of Reorganization items, net — see Note 20;

The following previously reported financial information included in the column “Debt Discharge and Equity Issuance” in the table “Fresh-Start Adjustments” in Note 1:


	Debt Discharge				Debt Discharge
	and Equity				and Equity
	Issuance				Issuance (a)
	(as reported)		Adjustment		(as restated)
Assets
Current assets:
Cash and cash equivalents	$	87,526	$	—	$	87,526
Restricted cash		—		—		—
Due from charterers, net		—		—		—
Prepaid expenses and other current assets		—		—		—
Time charters acquired		—		—		—
Total current assets		87,526		—		87,526

Noncurrent assets:
Vessels, net		—		—		—
Deposits on vessels		—		—		—
Deferred drydock, net		—		—		—
Deferred financing costs, net		(11,893)		—		(11,893)
Fixed assets, net		—		—		—
Other noncurrent assets		—		—		—
Restricted cash		—		—		—
Investments		—		—		—
Goodwill		—		—		—
Total noncurrent assets		(11,893)		—		(11,893)

Total assets	$	75,633	$	—	$	75,633

Liabilities and Equity
Current liabilities not subject to compromise:
Accounts payable and accrued expenses	$	(1,086)	$	—	$	(1,086)
Current portion of long-term debt		—		—		—
Deferred revenue		—		—		—
Time charters acquired		—		—		—
Total current liabilities not subject to compromise		(1,086)		—		(1,086)

Noncurrent liabilities not subject to compromise:
Long-term lease obligations		—		—		—
Long-term debt		—		—		—
Total noncurrent liabilities not subject to compromises		—		—		—

Total liabilities subject to compromise		(1,194,687)		—		(1,194,687)

Total liabilities		(1,195,773)		—		(1,195,773)

Equity:
Genco Shipping & Trading Limited shareholders’ equity:
Predecessor Common stock		(445)		—		(445)
Predecessor Additional paid-in capital		(849,130)		—		(849,130)
Successor Common stock		603		—		603
Successor Additional paid-in capital		1,232,397		—		1,232,397
Accumulated other comprehensive income		4,574		(34,931)		(30,357)
Retained (deficit) earnings		936,774		(18,436)		918,338
Total Genco Shipping & Trading Limited shareholders’ equity		1,324,773		(53,367)		1,271,406
Noncontrolling interest		(53,367)		53,367		—
Total equity		1,271,406		—		1,271,406

Total liabilities and equity	$	75,633	$	—	$	75,633

The following previously reported financial information included in the column “Revaluation of Assets and Liabilities” in the table “Fresh-Start Adjustments” in Note 1:


	Revaluation of				Revaluation of
	Assets and				Assets and
	Liabilities				Liabilities
	(as reported)		Adjustment		(as restated)
Assets
Current assets:
Cash and cash equivalents	$	—	$	—	$	—
Restricted cash		—		—		—
Due from charterers, net		—		—		—
Prepaid expenses and other current assets		(41)		—		(41)
Time charters acquired		450		—		450
Total current assets		409		—		409

Noncurrent assets:
Vessels, net		(1,065,882)		—		(1,065,882)
Deposits on vessels		2,317		—		2,317
Deferred drydock, net		(16,396)		—		(16,396)
Deferred financing costs, net		—		—		—
Fixed assets, net		(3,443)		—		(3,443)
Other noncurrent assets		—		—		—
Restricted cash		—		—		—
Investments		—		—		—
Goodwill		166,067		—		166,067
Total noncurrent assets		(917,337)		—		(917,337)

Total assets	$	(916,928)	$	—	$	(916,928)

Liabilities and Equity
Current liabilities not subject to compromise:
Accounts payable and accrued expenses	$	—	$	—	$	—
Current portion of long-term debt		—		—		—
Deferred revenue		—		—		—
Time charters acquired		(16)		—		(16)
Total current liabilities not subject to compromise		(16)		—		(16)

Noncurrent liabilities not subject to compromise:
Long-term lease obligations		(2,670)		—		(2,670)
Long-term debt		—		—		—
Total noncurrent liabilities not subject to compromises		(2,670)		—		(2,670)

Total liabilities subject to compromise		—		—		—

Total liabilities		(2,686)		—		(2,686)

Equity:
Genco Shipping & Trading Limited shareholders’ equity:		—		—		—
Predecessor Common stock		—		—		—
Predecessor Additional paid-in capital		—		—		—
Successor Common stock		—		—		—
Successor Additional paid-in capital		—		—		—
Accumulated other comprehensive income		(34,931)		34,931		—
Retained (deficit) earnings		(879,311)		18,436		(860,875)
Total Genco Shipping & Trading Limited shareholders’ equity		(914,242)		53,367		(860,875)
Noncontrolling interest		—		(53,367)		(53,367)
Total equity		(914,242)		—		(914,242)

Total liabilities and equity	$	(916,928)	$	—	$	(916,928)