Hoe Leong Corporation sells AHTS pair to Allianz Offshore

Hoe Leong Corporation sells AHTS pair to Allianz Offshore

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.

 

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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