Megacore

Omega Navigation Enterprises announced today the formation of a 50/50 joint venture with Topley Corporation, a wholly owned subsidiary of Glencore International AG, to be named Megacore Shipping. Companies owned by the partners have novated their original shipbuilding contracts with Hyundai Mipo consisting in total of 10 newbuilding 37,000 DWT product chemical carriers (five from each partner) to companies controlled by Megacore. The order has been converted to two MR1s and 7 LR1s, while one MR1 has been suspended and remains an option. Under the new agreement, three vessels will deliver in 2010, four in 2011 and two in 2012. Even with the changes, the overall aggregate purchase cost based on contract price remains similar to the original contracts, while the amount of equity that would to be invested has been reduced based upon the vessels’ fair market value.

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