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June 19, 2018

Noble Group signs deal to sell dry bulk carrier vessel

Noble Group (NGL), along with its indirect wholly owned subsidiary Core Forte, has signed a memorandum of agreement (MOA) to sell a Kamsarmax dry bulk carrier vessel called Ocean Forte to Aeolian Spirit Shipping.

Noble Group (NGL), along with its indirect wholly owned subsidiary Core Forte, has signed a memorandum of agreement (MOA) to sell a Kamsarmax dry bulk carrier vessel called Ocean Forte to Aeolian Spirit Shipping.

Transmed Shipping, which will guarantee the performance of the buyer, was also a signatory of the agreement.

Under the terms of the agreement, Aeolian Spirit Shipping will pay $23.79m in cash as consideration upon completion of the proposed disposal. The buyer is also scheduled to deposit 10% of the consideration with an escrow agent as security.

The transaction is subject to the approval of NGL shareholders.

Manufactured in 2015, the vessel is registered in Hong Kong and has a capacity of 81,616 DWT.

Besides serving external customers, the vessel was used to fulfil the Noble Group’s internal freight requirements. It was also included in the company’s Metals, Minerals and Ores sector for reporting purposes.

“The sale is not expected to significantly impact the Noble Group’s freight business, which will be managed by other vessels under the NGL fleet.”

NGL stated that this proposed disposal will not affect the proposed debt restructuring under the support agreement signed on 14 March.

The sale is not expected to significantly impact the Noble Group’s freight business, which will be managed by other vessels under the NGL fleet.

Ocean Forte is currently mortgaged to a financial institution. A part of the proceeds received under the transaction will be used to pay the owed amounts.

The remaining amount, expected to be $8.4m, will form part of the assets proposed under the new entity called the ‘Asset Co’, which will be formed as a part of the restructuring process.

It can also be used to repay the facilities on other vessels of the Noble Group.

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