Eitzen sells three newbuildings

(May 5 2009)

Eitzen Chemical has sold through novation three newbuildings from Croatia, in a move which completed its newbuilding programme.
Eitzen has entered into an agreement with clients of Laurin Maritime to sell its three remaining newbuildings from Brodotrogir in Croatia through a novation agreement, whereby the buyer will assume all rights and obligation the company has towards the yard, including all further payment obligations.

The basis for the agreement is a total price of $124 mill (including extras). It is conditional on approval from the yard and its refund guarantors.
Eitzen Chemical has also increased the impairment charge as of year end 2008 to $313 mill, up from $156 mill previously reported.

The company said that it did not expect to record a loss from the above transaction, nor did it expect to record a loss from the cancellations in Japan reported earlier, except for the $7.5 mill cancellation fee payable.

Source: Tanker Operator