The executive, who did not wish to be named, said that "We sold Maharshi Vishwamitra to Mercator for approximately $30 million, which reduced our loans by about USD 25 to USD 26 million. The second sale will also reduce loans by the same amount."
On September 30th 2012, Varun Shipping had a consolidated debt of INR 2,769 crore. The sale of the 2 carriers will bring down the debt burden by 10%.
After the 2 sales, Varun Shipping will own 2 large and 7 mid sized gas carriers. The executive said that "The company will focus on the mid-sized gas carrier segment, where haulage rates are relatively stable."
Earlier this month, the Directorate General of Shipping withdrew the company's licence to operate ships for failing to dock these for safety surveys and for not paying back wages to the crew. Surveys for 6 of the company's 8 ships were overdue for months, the regulator had said in a notice.
Dry dock repairs have to be conducted twice every five years on a ship, with the interval between them not exceeding 36 months.
