Norwegian feeder container ship operator MPC Container ships has called a meeting with investors as it seeks to use the insurance payout from a constructive total loss to part finance its scrubber installation programme, writes Malcolm Latarche in his Ship Insight article.
Why is this needed?
Late last year, MPC announced a scrubber retrofit programme for five vessels at a cost of around $17m. In April the ship AS Fortuna was declared a constructive total loss after suffering a grounding in September last year. The insurance payout together with the proceeds of the sale of the vessel amount to $8.3m which under the terms of the initial investment should be paid into a disposal account and returned to investors.
How will it help?
MPC has proposed that instead of returning the money it be used to part finance the retrofit of scrubbers across the five vessels identified as candidates last year.
- The scrubbers will automatically become part of the Transaction Security when the installations have been completed.
- MPC will find the balance of around 48.7m needed to complete all the scrubber installations.
- The proposal has the support of the lead investor but will be decided at an investor meeting on 5 July.
- MPC says that installation of the scrubbers will mean additional charter income of between $1 and $4 million annually.
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Source: Ship Insight