Sea Trucks sells vessel under constructionVessel & ROV News // June 10, 2015
Sea Trucks Group Limited has sold one of the vessels it has under construction. Neither the vessel nor the proceeds from its sale form part of the security package of the company’s 9 per cent Senior Secured Bonds due 2018.
The company has received cash proceeds from the sale, which will be of material benefit to Sea Trucks’ liquidity position. The vessel was sold pursuant to a confidential vessel purchase agreement and the company will take a non-cash impairment in its full-year 2014 accounts in respect of the sale terms.
The company has applied part of the proceeds towards repayment of construction financing; thereafter, the net liquidity improvement will be used towards an increase in working capital given the current weak industry conditions, the potential reduction of additional debt (whether through privately negotiated open market purchases or otherwise), future capital expenditure, and other general corporate purposes of the company.