NOBLE Group, in the midst of paring a mountain of debt, has announced it has entered into a memorandum of agreement on March 29 to sell a Kamsarmax-size dry bulk carrier to Cypriot company Ocean Liberty Marine Ltd and Transmed Shipping Ltd for US$24 million in cash.
The vessel, called the Ocean Vision, is currently mortgaged to a financial institution and part of the proceeds from the sale will go towards paying down the amount owned under the relevant facility.
Net proceeds arising from the proposed disposal will be around US$8.2 million, after factoring in repayment of the relevant facility and deducting transaction costs related to the disposal.
The proceeds will form part of the assets of Asset Co, the new company that will come about from Noble’s proposed financial restructuring.
As part of the agreement, Ocean Liberty Marine will place a 10 per cent deposit in escrow as security.
The sale, if approved by Noble’s shareholders, is expected to be finalised between April 11, 2018 and June 15, 2018.
Noble decided to “avail itself of favourable market conditions” to sell the vessel, the company said.
It had commissioned two valuations – the Arrow Valuation and Clarkson Valuation – both of which valued the vessel at US$24 million.
The ship is currently operated as part of Noble Group’s freight business, and Noble said the sale will not significantly impact that division’s business operations.
She was built in 2015 and is registered under the Hong Kong flag, and has a capacity of 81,502 deadweight tonnage (dwt).
The net loss – before income tax, minority interests and extraordinary items – attributable to the vessel, based on Noble’s FY2017 results, is around US$2 million.
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Source: Business Times
