ENERGY & OFFSHORE | Staff Reporter, Singapore

Noble Group sells vessel for US$24m

The net proceeds from it will form part of the assets of Asset Co.

Noble Group and its indirect wholly-owned subsidiary Core Integrity today entered into a memorandum of agreement with Bianca Corporation and Primerose Shipping Co. Ltd. to sell its Kamsarmax dry bulk carrier vessel for US$24m.

The vessel, called Ocean Integrity, was built in 2015 and has a capacity of 81,499 deadweight tonnage. It is use to serve Noble’s external customers and internal freight requirements.

“The Vessel is currently operated as part of Noble Group’s Freight business; however, the proposed disposal will not significantly impact the operations of Noble Group’s Freight business,” Noble noted in its filing to the Singapore Exchange.

The vessel was recently commissioned by Noble to Arrow Valuation and Clarkson Valuation, which valued it at US$24m. As such, Noble would gain US$500,000 when the vessel is sold.

“The Vessel is currently mortgaged to a financial institution and part of the proceeds from the proposed disposal will be used by Noble Group to pay down the amounts owned under the relevant facility,” the commodities trader added.

Meanwhile, the net proceeds from the vessel will amount to approximately US$7.3m which will form part of the assets of Asset Co.

Noble expects to complete the sale of the vessel between 20 March 2018 and 16 April 2018.

The Singapore Exchange Regulation earlier required Noble to appoint an independent financial advisor that will look into some concerns about the company’s debt restructuring plan.

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