TOP Tankers Inc
(Nasdaq: TOPT) announced the sale and immediate leaseback of the handymax
tankers M/T Restless and M/T Sovereign. The vessels have been leased back
under seven-year bareboat charters, with TOP Tankers performing the
operational and commercial management
of the vessels. The vessels will
continue their employment under time charter contracts with Vitol and Glencore (GLCNF)
for the remaining period of two and four years, respectively, under those
The Company expects to generate a gain of approximately $7.0 million as a
result of the sale/leaseback transactions, which will be amortized over the
seven-year bareboat charter period. The Company believes that the bareboat
charters will qualify as operating leases under U.S. GAAP.
Evangelos J. Pistiolis, President and CEO of TOP Tankers Inc commented
"The sale and charter back of the M/T Restless and the M/T Sovereign should
further strengthen our balance sheet and enhance our ability to pursue further
acquisition opportunities in the second-hand tanker market."