Nordic Tankers sells chemical tankers business for $30 million

COPENHAGEN, DENMARK: Nordic Tankers agreed to sell its chemical tanker business for $30 million to a company controlled by private equity firm Triton. The company is negotiating a loan repayment freeze for its remaining assets for another year. Nordic Tankers suffered from a sector slump, caused by the global economic downturn and oversupply of vessels, a combination that has knocked freight rates to loss-making levels. The company is facing expiry of a previously agreed debt repayment freeze at the end of this month. Tommy Thomsen, CEO, Nordic Tankers will head the new company operated under the Nordic Tankers brand.

According to Triton, the combined company will become the leading global regional chemical tanker operator with a total fleet of more than 120 chemical tankers. The remaining Nordic Tankers business, which will comprise a fleet of six product tankers in the range 37,000-73,000 deadweight tonne, will be renamed Nordic Shipholding A/S. Losses caused by globally weak shipping markets and a plunge in its share price last year forced Torm to seek to delay repayment and put it in breach of its loan agreements.

© Reuters News