Swiber Atlantis, indirect wholly subsidiary of Swiber, has entered into a memorandum of agreement with Wag Spv I LLC to sell Sea Horizon, a 1977-built, Panama-flagged cargo barge.
Swiber said Sea Horizon is the oldest vessel in the group’s fleet of 11 barges, and has been put in ‘off-hire’ status as of 20 June 2016 at a shipyard in Singapore.
“As the vessel is currently mortgaged to DBS, the proceeds from the proposed disposal will be used by the group to pay down the amounts owing under the DBS facilities,” Swiber stated.
“The group is engaged in the core business of the provision of global engineering, procurement, installation and construction services. The vessel to be disposed of does not form the core business of the group as the vessel has ceased operations and is not intended for future operations of the group,” it said.
Swiber added that whilst the vessel remains unutilised, a minimum sum is required for maintenance of the vessel in cold stack lay-up, and that is it not ideal for the group to be incurring this cost.
Based on the net book value of Sea Horizon as at 31 March 2016 of $10.05m and sale price of $10.25m, the disposal will result in an estimated net gain of approximately $200,000, after deducting related expenses.
The vessel disposal is scheduled to be completed on 22 November 2016.
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