Hellenic Wind sold for Demolishing
Hellenic Carriers Limited, an international provider of marine transportation services for dry bulk cargoes, on 17 May 2016 sold the Company’s vessel HELLENIC WIND (74,000 DWT built 1997) for demolition to an unrelated third party for a total gross cash consideration of US$2.88 million.
US$1.6 million of the proceeds of this sale were used by the Company for repayment of its outstanding debt under the loan described as Loan B in note 11 to the Company’s audited consolidated financial statements for the year ended 31 December 2015 (“Loan B”) and US$1 million remains pledged to the bank to be used (i) for the Intermediate or Special Surveys of the Company’s other vessels mortgaged under Loan B and (ii) payment of interest due under Loan B.
The net book value of such vessel on the date of sale was US$10.4 million, accordingly, the Company will realize a net book loss of approximately US$7.9 million on this sale. The Company decided to proceed with the sale of M/V HELLENIC WIND, the oldest vessel operated by the Company, since her Dry Dock, during which extended and costly repairs would have to be undertaken, was due to take place by no later than September 2016.
The underlying agreements for the restructuring of Loan B have now been finalized. Notwithstanding the restructuring, the outstanding principal amount under Loan B remains the same, however the debt repayment schedule has been adjusted and the maturity of the loan has been extended from May 2020 to November 2024.