Honor the Shareholder – Saga Tankers Unwinds

One of the last IPOs to get done, Saga Tankers ASA wrote its own obituary announcing in its 3rd quarter report its decision to submit a proposal to shareholders to dissolve the company and payout the residual shareholder value as a dividend. The company has sold all four of its vessels, two of which have been delivered to new owners with the third to be delivered this month. The last, M/T Saga Agnes, will deliver in July/August 2012, upon completion of the current time charter, subject to shareholder approval of the sale. Reflecting these sales all necessary impairment charges have been taken and the lenders repaid accordingly. Total outstanding debt, after delivery of the three vessels will be $21 million attributable to the Agnes, which loan will amortize by $1.2 million quarterly.

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