NewLead Holdings Ltd., an international shipping company owning and operating tankers and dry bulk vessels, today announced the completion of the sale of the four LR1 product tankers and one Panamax dry bulk vessel, the 1990-built “Newlead Esmeralda”.
The sale of these vessels was conducted as part of the Company’s overall financial restructuring plan.
Following the successful completion of sale of the five vessels, the net sales proceeds have been applied in full satisfaction of all liabilities under the governing loan agreements. NewLead’s overall indebtedness decreased by an aggregate of approximately $159.0 million after these sales, of which a decrease of $147.9 million resulted from the sale of the four LR1 product tankers and a decrease of $11.1 million resulted from the sale of the “Newlead Esmeralda” for total sale proceeds of $12.0 million out of which $0.9 million will be used to satisfy a substantial part of the vessel’s trade debt.
Michael Zolotas, President and Chief Executive Officer of NewLead , stated, “The successful completion of the sale of the five vessels is a momentous step forward in achieving a successful restructuring for the Company. We have significantly reduced the indebtedness of the Company and together with our restructuring advisors continue to work with our lenders to successfully complete the financial restructuring of NewLead and move the Company forward.”
[mappress] Source: NewLead Holdings, March 12, 2012