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Navios inks 10-ship deal with HSH

Navios inks 10-ship deal with HSH
Piraeus: Navios Group has agreed to acquire 10 ships with $130m in cash and $170m in loan from the debtors of HSH Nordbank through a new joint venture named Navios JV.

The 10 ships, comprising of five product tankers and five container vessels, are underperforming vessels being financed by the bank.

“Working closely with HSH over the past year, we devised a program whereby vessels can be removed from insolvency and placed into a stable situation,” said Angeliki Frangou, chairman and ceo of Navios Group.

She believed that Navios is acquiring a significant fleet at historically low values under favourable economics.

Navios JV will assume subordinated participating loan provided by HSH of $170m on interest accruing annually at 8%.

Navios JV will run the vessels for six years and from the seventh year the vessels may be sold at the sole discretion of the company. It is anticipated that the arrangement with the bank will be wound up by the tenth year.

The product tankers, all built in 2008 and 2009, ranges from 37,000-63,599 dwt. The container vessels, built between 2006 to 2008, ranges from 2,007-3,398 teu.