Goldenport board votes to sell vessels, cancel listing of shares

By Caroline Salls

Pittsburgh, April 22 – Goldenport Holdings Inc.’s board of directors approved the sale of company vessels at the request of lenders, according to a news release.

On Jan. 22, Goldenport suspended the servicing of its debt, and the company said it has been in negotiations with its lenders to restructure its loan facilities.

The company said the amount of debt outstanding under each loan facility is significantly higher than the independent broker valuation of the respective vessels.

Goldenport said it obtained shareholder approval in March to proceed with the sale of some vessels for a token consideration to entities controlled by the Dragnis family and to proceed with the disposal of all or substantially all of the assets of the company.

Despite its best efforts to restructure its loan facilities, the company said the lenders expressed their preference for selling six out of eight vessels in the absence of availability of new capital to resume regular interest payments.

Sale details

The vessels will be sold for a token consideration to entities controlled by the Dragnis family. Goldenport said the remaining two vessels will be sold in full and final settlement of the related loan facilities.

Specifically, the board approved the sale of the Eleni D to Nemea Marine SA for $1 in connection with the Commerzbank loan facility; the sale of Milos and Pisti to Verona Navigation SA for $1 in connection with RBS loan facilities; the sale of D Skalkeas, Erato and Paris Jr to Meteora Shiptrading SA for $1 in connection with the UniCredit loan facility; and the sale of Sifnos and Sofia for the best consideration that can be obtained, in full and final settlement of the related RBS loan facilities.

Goldenport said Nemea Marine, Verona Navigation and Meteora Shiptrading are each companies controlled by the Dragnis family.

Listing cancellation

As a result of the sale of all of the company’s vessels, Goldenport said the board unanimously approved a request to the Financial Conduct Authority for the cancellation of the admission of the company’s ordinary shares to the Official List of the UKLA and to trading on the Main Market of the London Stock Exchange.

The company said the dry bulk and containership shipping markets have become increasingly challenging with increasing idle capacity, weakening vessel charter rates and receding asset values.

As a result, Goldenport said its cash reserves have been drained in order to cover operating expenses and finance costs.

“The adverse market conditions have made company losses unavoidable over the past few years,” Goldenport said in the release.

“During the same period, there has been a significant fall in the company’s ordinary share price, resulting in a shrinking market capitalization.”

The board said the company has not managed to raise capital and increase its free float since a placing and open offer in July 2010 and has always suffered from low levels of liquidity in the trading of its ordinary shares.

In the current financial climate and taking into account the company’s low market capitalization and the costs of maintaining the listing while having no operating assets after the proposed vessel sales, Goldenport said it “has become evident that it would be economically sensible to proceed with the delisting.”

The company said it is required to give at least 20 business days’ notice of the intended listing cancellation, so the preferred date of cancellation is May 24.

Trading on the Main Market is expected to cease at the close of business on May 23.

Goldenport said it intends to keep its existing board structure of three directors, a non-executive chairman and two executive directors.

Goldenport is an Athens-based international shipping company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.