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Scorpio Bulkers converts 6 capes into tankers. From HSNScorpio Bulkers Inc. Announces Agreements to Modify and Sell Existing Shipbuilding Contracts for Six Capesize Vessels Scorpio Bulkers Inc. announced that it has (i) reached agreements with shipyards in South Korea and Romania to modify six newbuilding contracts for Capesize bulk carriers into newbuilding contracts for LR2 product tankers, (ii) reached an agreement to sell four of these LR2 newbuilding contracts to Scorpio Tankers Inc., a related party, and (iii) granted options to Scorpio Tankers Inc. to purchase the two remaining LR2 newbuilding contracts. The sale price for each of the four LR2 newbuilding contracts is $51.0 million. The two option contracts, which expire on May 31, 2015, may be exercised by Scorpio Tankers Inc. for a fixed purchase price of $52.5 million for each contract. The Company expects to record an aggregate loss on disposal of approximately $41 million on the four modified newbuilding contracts. The Company also expects to record an aggregate loss of approximately $14 million on the potential disposal of the two option modified newbuilding contracts, which will be reclassified on the balance sheet as assets held for sale. The independent members of the Company’s Board of Directors unanimously approved the transaction with Scorpio Tankers Inc. described in the preceding paragraphs. At the purchase prices indicated above, a sale of all six modified newbuilding contracts will result in an estimated reduction of future cash obligations of approximately $120 million. Emanuele Lauro, the Company’s Chairman and CEO, commented “We have taken these actions to strengthen our liquidity position. We will continue to be proactive in further strengthening our balance sheet.” Scorpio Bulkers Inc. is a provider of marine transportation of dry bulk commodities. Scorpio Bulkers Inc. currently owns two Kamsarmax vessels, time charters-in 22 dry bulk vessels (one Handymax, one Ultramax, four Supramax, five Panamax, eight Kamsarmax and three Post-Panamax vessels) and has contracted for 72 dry bulk vessels consisting of 29 Ultramax, 21 Kamsarmax and 22 Capesize vessels, four LR2 tankers sold, subject to completion, and two LR2 tankers held for sale from shipyards in Japan, South Korea, China and Romania. Upon final delivery of all of the vessels, the owned fleet is expected to have a total carrying capacity of approximately 7.6 million deadweight tonnes. Source: Scorpio Bulkers Inc. Powered by Translate There is some hope that these morons come to their senses and realize that the market does not need these vessels. Its definitively a step in the right direction. They must have noticed that the VLCCs now are commanding a rate of 100,000 bucks a day. JF must be smiling again. |
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