Ship Sale Pays Off Mortgage, Compensates Charter Termination

Mercator Lines (Singapore) agrees to sell its 279,022 dwt  VLOC 'Sri Prem Putli'.

The vessel was built in 1993 and converted from Very Large Crude Carrier (VLCC) to Very Large Ore Carrier (VLOC) in 2009.

The Vessel is expected to be delivered to its buyers in March 2013. The sale is subject to the approval of the mortgagee to which the Vessel has been mortgaged. The sale would be along with her existing charter.

Assuming a delivery date of 31 March 2013, the Book Value of the Vessel on the date of her delivery will be about US$ 67.44 mn and considering net proceeds of US$ 44.40 mn, the loss on account of sale of the Vessel will be about US$ 23.04 mn.

The Company intends to allocate the net proceeds from the sale of the Vessel towards part prepayment of the loan facility against which the Vessel is mortgaged, towards payment for early termination of charters of its long term chartered-in vessels