Norwegian dry bulk operator Western Bulk ASA has sold its wholly-owned subsidiary Western Bulk Chartering in an attempt to stay financially viable.
“The company is exposed to an increasingly challenging market situation with dramatically low dry bulk charter rates and guarantees granted by group companies for charters for certain ship owners. This has resulted in significant strains on the company’s short term liquidity situation,” Western Bulk said in a statement.
Western Bulk Chartering was sold in an auction to Norway-based private investment company Kistefos AS for a cash consideration of USD 16 million.
The enterprise value was established at approximately USD 47 million.
Under the terms of the sale, Kistefos AS will further assume the company’s remaining debt amount of USD 31 million.
The sale is subject to approval from the company’s bondholders.