Safe Bulkers Sells Two Newbuilds to Its CEO

Dry bulk shipping company Safe Bulkers has agreed to sell two newbuilding vessels to entities owned by Polys Hajioannou, the Chairman of the Board and the company’s Chief Executive Officer.

The Japanese Panamax class vessel and the Kamsarmax class vessel, scheduled to be delivered in the first quarter of 2017, are being purchased for a total of USD 48.2 million.

The company said that the independent third party brokers appraised the Panamax at USD 21.5 million and the Kamsarmax at USD 24.5 million.

With this sale, Safe Bulkers expects to substantially preserve its liquidity position and avoid the need to incur additional indebtedness.

As a result of the transactions, the company will record an aggregate non-cash impairment loss of USD 16.6 million in the third quarter of 2016, which represents installments already paid in respect of the two newbuildings.

Of the four newbuild vessels that were previously on its orderbook, Safe Bulkers has been able to finance one newbuild vessel “through the issuance of preferred equity securities and we now have entered into arrangements to sell or novate two additional newbuild vessels, thus substantially preserving the company’s liquidity position,” Loukas Barmparis, President of the company, said.

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