Nanjing Tanker sells four chemical tankers for leaseback

Under the agreement signed on Friday, Yangyang Chemical Transport will sell the four chemical tankers for a total of RMB200m ($32.13m) to the financial institution and lease the ships back over an eight-year period.

The agreement also states that Yangyang Chemical Tansport is entitled to acquire the ships back at a “nominal price” after the shipping firm has made all payments in full at the end of the leasing contract.

“Nanjing Tanker is making use of ship financing availability to support the company's long term cash flow for its day-to-day operations amid the present shipping and financial crisis. The financial deal will allow Nanjing Tanker to free up cash flow, reduce its debts, and enhance its ability to repay short term loans,” Nanjing Tanker said.

The Shanghai-listed tanker company had raised the alarm on a possible delisting from the stock exchange as it projected deepening net loss in the financial year ended 31 December 2012.

The company will record three consecutive years of net losses if 2012 turns out to be another year of deficit. In 2011, Nanjing Tanker posted a full year loss of RMB754.17m.