Saga Tankers has sold off its second VLCC in three months as crashing ship values stretch the Arne Blystad-led owner’s finances.
Oslo-listed Saga says the 299,000-dwt Saga Unity (built 2000) has been cashed in for $29.4m.
In a statement to investors Saga explains it will use the money to help clear its debts at a time when it is stretching its loan covenants.
“The decline in ship values increases the risk for the company breaching covenants in its loan agreements, such as clauses regarding minimum value and value adjusted equity ratio,” the company said.
“As a result, the company is in discussions with its lenders concerning its indebtedness.
“The company continues to review its financing options and is currently considering various alternatives.”
Saga, which saw a takeover bid from DHT Holdings fall apart this summer, sold the 298,000-dwt Saga Chelsea (built 1995) in August for $25m.