Hong Kong-listed Jinhui Shipping has entered into agreements for the disposal of four supramaxes bulk carriers for a total of $48m.
The four vessels Jin Shun, Jin Mao, Jin Heng and Jin Feng were sold to four subsidiaries of Tianjin-based Minyi Ship Leasing, a ship leasing unit of China Minsheng Trust.
Jinhui Shipping intends to use about 90% of the net sale proceeds for the repayment of the vessel mortgage loans and the remaining portion will be kept as general working capital.
The company said the reason behind the sale is due to uncertainty in the global economic outlook, which it believes will introduce volatility to the company’s business performance, and it reckons it will be prudent to periodically reduce indebtedness and enhance liquidity when opportunities arise.
After the disposal, Jinhui Shipping fleet drops to 24 vessels made up of two post-panamaxes, twenty one supramaxes and one handy size.