Swissco Holdings to dispose of vessel for US$7.2m

THE interim judicial managers of Swissco Holdings announced on Thursday that it has entered into a memorandum of agreement with Australian Maritime Systems Asset Holdings for a proposed disposal of a vessel for the consideration of US$7.2 million.

The amount comprises a sales commission of US$172,000 payable by Australian Maritime Systems and the balance of US$7.03 million payable by cash.

The sale price was arrived at based on, among other factors, the net book value of the vessel of US$5.02 million as of Nov 30, 2016, and after taking into account an independent desktop valuation of the vessel on Jan 23, 2017, at an indicative range of US$5 million (being the forced sale value of vessel) to US$10 million (being the fair market value of the vessel).

The vessel known as Coral Knight has been mortgaged in favour of OCBC as security for obligations under certain banking facilities extended by OCBC. Built in 2014, the vessel is currently bareboat chartered to Australian Maritime Systems up till April 29, 2017.

The proceeds from the proposed disposal will be used by the group to pay down the amounts owed under the OCBC facilities.