Gulf Navigation has struck an agreement to sell its two oil tankers for $98 million (Dh360m), providing some relief to the beleaguered company.
The Dubai-based shipping company announced today that it had signed a memorandum of understanding with DHT Holdings of Bermuda for the sale of its Gulf Sheba and Gulf Eyadah tankers.
The agreed price comes in higher than the Dh312.4m that Gulf Navigation had estimated that it could recover for the vessels in its third-quarter results published in November.
DHT expects to take delivery of the vessels next month, according to a statement on its website.
The sale announcement comes after Gulf Navigation won approval for the sale at an extraordinary general meeting of shareholders on January 5.
The two vessels were arrested in September and October under the order of Gulf Navigation’s creditors, after the company defaulted on two of its term loans.
The sale of the two vessels is part of an extensive restructuring programme for the company in the face of crippling losses.
Gulf Navigation’s shares rose on the news by one per cent in early trading today.
The Dubai-based shipping company announced today that it had signed a memorandum of understanding with DHT Holdings of Bermuda for the sale of its Gulf Sheba and Gulf Eyadah tankers.
The agreed price comes in higher than the Dh312.4m that Gulf Navigation had estimated that it could recover for the vessels in its third-quarter results published in November.
DHT expects to take delivery of the vessels next month, according to a statement on its website.
The sale announcement comes after Gulf Navigation won approval for the sale at an extraordinary general meeting of shareholders on January 5.
The two vessels were arrested in September and October under the order of Gulf Navigation’s creditors, after the company defaulted on two of its term loans.
The sale of the two vessels is part of an extensive restructuring programme for the company in the face of crippling losses.
Gulf Navigation’s shares rose on the news by one per cent in early trading today.