Denmark-based shipowner Nordic Shipholding after failing to find a merger partner, has put the company’s 3 remaining vessels up for sale, reports Offshore Energy.
Merger discussions
Since November 2020, the firm has held extensive discussions with potential merger partners and lenders in order to secure long-term viability.
Talk stalled
However, such merger talks have been stalled and the company’s management has agreed to sell the vessels in accordance with the agreement with the lenders.
“Given the volatility in the sale and purchase market for these vessels, it is probable the Group may recognise a further write-down of the vessels’ carrying value in the range of US$4 – US$5 million in this financial year,” the company stated.
Furthermore, the company expects that various stakeholders will finance the business to secure that the plans of selling the vessels run without problems.
Delay due to COVID-19
In August 2020, Nordic Shipholding revealed that the discussions on a potential merger with an unidentified tanker firm have been delayed due to the impact of the COVID-19 pandemic.
Nordic Shipholding’s fleet
Copenhagen-listed Nordic Shipholding owns five product tanker vessels, four handysize tankers and one LR1.
The handysize tankers are employed in the Hafnia handy pool, and the LR1 unit in the Hafnia LR1 pool (formerly Straits pool), both operated by Hafnia, Copenhagen.
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Source: Offshore Energy
