Company Expects to Realize Net Gain of Approximately $24 million
NEW YORK, Sept. 10 /PRNewswire-FirstCall/ -- Genco Shipping & Trading
Limited (NYSE: GNK) today announced that it has reached an agreement to sell
the Genco Commander, a 1994-built Handymax vessel to Dan Sung Shipping Co.
Ltd. for $44.45 million less a 2% brokerage commission payable to a third
party. The Company expects to realize a net gain of approximately $24 million
from the sale of the vessel in the fourth quarter of 2007. The Company plans
to use the proceeds from this sale to pay down debt following its recent
agreements to acquire a total of 15 drybulk vessels. The delivery of the Genco
Commander is expected to take place upon the expiration of the vessel's
current time charter between October 1, 2007 and December 31, 2007.
Robert Gerald Buchanan, President, said, "With the sale of the Genco
Commander at an attractive price, management continues to capitalize on the
strong fundamentals in the drybulk industry and act opportunistically in the
best interest of shareholders. Upon completing the sale of one of our oldest
vessels, and after the expected delivery to Genco of the remaining 13 drybulk
vessels Genco agreed to purchase earlier this year, the average age of our
fleet will improve to approximately 7.5 years, well below the industry
average."
About Genco Shipping & Trading Limited
Genco Shipping & Trading Limited transports iron ore, coal, grain, steel
products and other drybulk cargoes along worldwide shipping routes. Genco
Shipping & Trading Limited currently owns a fleet of 21 drybulk vessels
consisting of two Capesize, seven Panamax, seven Handymax and five Handysize
vessels, with a carrying capacity of approximately 1,344,000 dwt. After the
sale of the Genco Commander and the delivery of six vessels from affiliates of
Evalend Shipping Co. S.A. and the seven remaining vessels from companies
within the Metrostar Management Corporation group, Genco Shipping & Trading
Limited will own a fleet of 33 drybulk vessels, consisting of nine Capesize,
seven Panamax, three Supramax, six Handymax and eight Handysize vessels, with
a carrying capacity of approximately 2,768,000 dwt.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act
of 1995
This press release contains forward-looking statements made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. These forward looking statements are based on management's current
expectations and observations. Included among the factors that, in our view,
could cause actual results to differ materially from the forward looking
statements contained in this press release are (i) the fulfillment of the
closing conditions under the Company's agreement to sell the Genco Commander;
(ii) the fulfillment of the closing conditions under the Company's agreements
to acquire the six Evalend drybulk vessels; (iii) the fulfillment of the
closing conditions under the Company's agreement to acquire the remaining
seven Metrostar drybulk vessels; (iv) increases in costs and expenses
including but not limited to: crew wages, insurance, provisions, repairs,
maintenance and general and administrative expenses; (v) changes in the
condition of the Company's vessels or applicable maintenance or regulatory
standards (which may affect, among other things, our anticipated drydocking or
maintenance and repair costs) and unanticipated drydock expenditures; and
other factors listed from time to time in our public filings with the
Securities and Exchange Commission including, without limitation, our Annual
Report on Form 10-K for the year ended December 31, 2006, our Quarterly
Reports on Form 10-Q, and our reports on Form 8-K.
SOURCE Genco Shipping & Trading Limited
CONTACT:
John C. Wobensmith,
Chief Financial Officer,
Genco Shipping &
Trading Limited,
+1-646-443-8555
Web site: http://www.gencoshipping.com
(GNK)