Monaco: Scorpio Bulkers is to change its contracts for three new Capesize vessels to three LR1 product tankers instead.
The Monaco-based company has agreed with its South Korean shipyard to change the existing contracts. Writing down the contracts to their estimated fair market value will incur a $22m loss for Scorpio, the company said in a statement.
The vessels will be held for sale, but will not be acquired by Scorpio Tankers.
“Should the contracts be sold for their current fair market value, the estimated future cash obligations of the Company will be reduced by approximately $60m,” Scorpio Bulkers said today. “The Company has no plans for any further contract conversions.”
Two of the LR1s are scheduled for delivery in the second quarter of 2017; the third vessel will arrive in the third quarter of 2017.
The three Capes were originally scheduled for delivery in early 2016.