Eitzen Chemical ASA reports that it has negotiated the cancellation of two operational bareboat leases for the vessels Sichem Pandora and Sichem Padua, both coated 9,200 dwt, built in 1994 and 1993, respectively.
The Company will pay cash cancellation compensation to the owner of approximately USD 2.0 million. The vessels are non-core and have significantly underperformed. The cancellations will have positive cash flow consequences going forward. Furthermore, the financial lease of the Sichem Peace (8,800 dwt, built 2005) will expire in the second half of 2011. As a consequence of the above terminations and expiry, the Company expects to record a net gain of approximately USD 2.3 million in the 3rd quarter.
Eitzen Chemical is one of the World’s leading carrier of petrochemical and related cargos, with a fleet of 78 vessels. 54 vessels are owned and leased, and a further 24 vessels are operated for partners.
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Source: Eitzen, September 20, 2011