China-based Jinhui Shipping and Transportation has signed four memorandums of agreement (MoA) to sell four of its Supramax bulk carriers to four different entities controlled by Minyi (Tianjin) Ship Leasing for a total consideration of $48m.
Minyi (Tianjin) Ship Leasing is currently involved in the chartering and trading of ships, as well as import and export of cargo and technology.
The four vessels to be owned by Minyi were built between 2009 and 2011, and feature deadweight capacities ranging from 54,768t to 57,352t each.
Jinhui noted that the all the four Supramax bulkers are expected to be delivered to their respective owners by April this year, with deliveries planned to start from next month.
The company will own two Post-Panamaxes, 21 Supramaxes and one Handysize vessel following the completion of the deal. Jinhui’s total vessel-carrying capacity will also be reduced from 1,602,343t to 1,380,364t.
Jinhui aims to use around 90% of the total net proceeds from the proposed sale to repay its vessel mortgage loans, while the remaining portion of the proceeds will be kept as general working capital.
The company says the sale is also expected to improve its working capital and boost its liquidity, as well as optimise its fleet profile.
It will also enable the company to keep up with the current uncertainties being witnessed by the global freight market.