The End? – Saga Sells the Rest of Its Fleet

Pressured by its bank syndicate, Saga Tankers ASA announced on Wednesday that, as a result of a substantial decline in vessel values as well as the continuing weak freight market, it agreed to sell its two remaining vessels, Saga Agnes and Saga Julie, to a first class Greek owner. With values in free fall, the company’s banks were pressing the company to issue new equity in order to alleviate the likely breach of its minimum value clause. Believing that in today’s market that the issuance of equity could only be concluded on terms that would be unattractive to shareholders and the resulting financial structure would remain precarious based upon the market outlook and the revised loan terms dictated by the banks, the company declined and instead disposed of the vessels in order to secure the remaining shareholders’ value.

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