The Board of STAR Reefers has sold or decided to sell six of its smaller and less efficient vessels; Viking Star, Argentina Star, Brasil Star, Honduras Star, Valparaiso Star and Tauranga Star, for scrapping . Additionally the Company has achieved a satisfactory solution to its dispute in respect of the JFC Group, the Company press release said. The terms of the agreement with the Russian fruit importer were not disclosed.
The transactions will have an aggregate positive effect of approximately USD6 million. Proceeds received will be used partly to prepay debt and for general working capital purposes.
Simon Stevens CEO of STAR Reefers commented:
"The sale of vessels for scrap is a positive step towards repositioning the company by focusing on the more modern and energy efficient tonnage in view of the difficult market conditions. In addition we have achieved a resolution to our dispute in respect of the JFC Group. All parties have worked hard to achieve this and I am pleased we have found a constructive and amicable solution."
The transactions will have an aggregate positive effect of approximately USD6 million. Proceeds received will be used partly to prepay debt and for general working capital purposes.
Simon Stevens CEO of STAR Reefers commented:
"The sale of vessels for scrap is a positive step towards repositioning the company by focusing on the more modern and energy efficient tonnage in view of the difficult market conditions. In addition we have achieved a resolution to our dispute in respect of the JFC Group. All parties have worked hard to achieve this and I am pleased we have found a constructive and amicable solution."