-Norwegian Saga Tankers to divest last two VLCCs.
NORDIC BUSINESS REPORT-October 20, 2011--Norwegian Saga Tankers to divest last two VLCCs(C)2011 M2 COMMUNICATIONS http://www.m2.com
20 October 2011 - Norwegian company Saga Tankers ASA (OSL:SAGA) said Wednesday afternoon it did not see any other solution to its financial troubles than to also sell its remaining two tankers, Saga Julie and Saga Agnes.
The company has agreed to divest the two very large crude carriers (VLCCs) for USD30.5m each. The buyer is a "first-class" Greek shipowner.
The sale of Saga Agnes is subject to approval by a general meeting and the vessel will be delivered to the buyer upon expiry of its existing time-charter contract in July/August 2012.
After completing the transaction, the board of directors will come up with proposals regarding the company's future. This may be related to the development of a new strategy, changing the description of the business or proposing that the company is dissolved and consequently paying out shareholder values as a dividend.
Saga Tankers has experienced a decline in ship values, which resulted in discussions with lenders to avoid breaching covenants in the company's loan agreements, such as clauses regarding minimum value.
The stock in Saga Tankers plunged 33.33% to NOK1.00 on Wednesday on the Oslo Stock Exchange (OSE).
(EUR1 = USD1.3; EUR1 = NOK7.8)
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