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Loss making Safe Bulkers sells three vessels to chairman Hajioannou

Loss making Safe Bulkers sells three vessels to chairman Hajioannou
As it reported a $29.9m loss in the fourth quarter Safe Bulkers has moved shore-up its liquidity situation with the sale of three vessels to its chairman Hajioannou.

Safe Bulkers reported a Q4 2015 loss of $29.9m compared to $0.1m loss in the same period a year earlier. Revenues declined 24% year-on-year to $29.9m.

The company revealed that it had sold two vessels and newbuilding contract to companies owned by its chairman and ceo Polys Hajioannou, and that it he is negotiations to buy another Japanese-designed kamsarmax newbuilding.

Companies belonging to Hajioannou acquired the 2006-built, 87,000 dwt post-panamax vessel Stalo for $9m, a 2014-built and 78,000 dwt panamax Kypros Unity for $20m. Another company controlled by the chairman will also takeover the contract for a 84,000 dwt post-panamax newbuilding due to be delivered 2019 reducing Safe Bulkers capex by $28.4m.

The vessel sale will also reduce Safe Bulkers debt by $16.7m and improve liquidity by $12.3m.

“We continue to execute on our strategy of further increasing our liquidity and enhancing our financial flexibility to address the historically low charter market conditions,” the company said.

“The sale and novation transactions with Mr. Hajioannou announced today will materially reduce our capital expenditure obligations in the near term and our existing indebtedness and significantly improve our liquidity position.”