Knightsbridge Tankers Limited announces that the sale of the VLCC Hampstead, which was discussed in the second quarter earnings release dated August 14, 2012, was not completed due to the buyer’s default.
The sale was, therefore, cancelled and Knightsbridge will retain the deposit received in the amount of $2.43 million. This amount will be recorded as a gain in the third quarter. The Company will also claim for costs, arising from the sales process, from the buyer. The Hampstead was marketed for sale after this cancellation and Knightsbridge announces that the vessel has now been sold to an unrelated third party with expected delivery in September 2012. The Company expects to record a loss of approximately $15 million in the third quarter. The net cash proceeds, including the $2.43 million deposit from the cancelled sale, are approximately $11 million.
Knightsbridge further announces that the VLCC Titan Venus (ex. Camden) has been sold to an unrelated third party with expected delivery in the fourth quarter of 2012 upon the expiry of its bareboat storage charter. The Company expects to record a loss of approximately $15 million in the third quarter and the net cash proceeds from the sale are approximately $7 million.
The sale of the two VLCCs is part of the Company’s intention to renew and grow the fleet and may assist the Company in reacting to interesting acquisition opportunities. After the sales, the Company’s fleet consists of four Capesize vessels and two VLCCs. One of the VLCCs and two of the Capesize vessels are fixed on bareboat and time charters expiring between 2013 and 2015.
Source: Knightsbridge, September 12, 2012