SINGAPORE (Reuters) - Crisis-wracked commodity trader Noble Group said on Friday said proposed agreements to sell four dry bulk carrier vessels have fallen through after the buyers failed to get approval from their boards for the deals by Thursday.
Noble estimated it would have received net proceeds of about $30 million if the vessels had been sold, after repayment of mortgages associated with the ships and other costs.
“Noble Group wishes to update that the vessels are, in the current market, profit generating and cash flow positive,” it said in a statement. The vessels were still available for sale and the company has started discussions with interested third parties, it added.
The proposed disposal of the vessels is a part of the company’s debt reduction plans. This week, Noble proposed a deal under which existing shareholders’ equity would be nearly wiped out, while the restructured company would have much lower debt.
Reporting by Aradhana Aravindan; editing by Richard Pullin