Singapore’s Hoe Leong Corporation has announced a proposal to sell AHTS vessels Arkstar Eagle 1 and Arkstar Eagle 3 to Allianz Offshore Ship Management for $1.7m in total.
The sale is expected to generate net proceeds of about S$2.3m ($1.66m), while resulting in a net loss on disposal of about S$3.15m ($2.28m).
According to Hoe Leong, the vessels’ class licenses have just expired and both are due for drydocking, which would cost about S$620,000 per vessel.
The potential sale is part of the restructuring plan that financially troubled Hoe Leong is discussing with UOB after the company received a statutory demand for S$5.7m from UOB in August.
Currently, Arkstar Eagle 1 is mortgaged to Sing Investments & Finance (SIF), while Arkstar Eagle 3 is pledged to RHB Bank.
The deal will require approval from shareholders and both SIF and RHB. Hoe Leong owes SIF and RHB S$2.43m each.
The two vessels are currently operated by Hoe Leong’s unit Arkstar Offshore, which owns a fleet of four OSVs.