Company sells two containerships for $40 million

Aries Maritime Transport Ltd. said Tuesday it reached agreement to sell two of its five containerships for a total of $40 million.

The Athens-based company will sell Energy 1 and MSC Oslo, two 1989-built 2,438-TEU sister ships, to an unnamed, "unrelated third party. It expects to finalize the sales in the second quarter of 2008. The MSC Oslo is chartered by Mediterranean Shipping Co., while the Energy 1 is chartered to Islamic Republic of Iran Shipping Lines.

The deal follows an announcement earlier this month that it would sell one of its 10 product tankers, the 1986-built Arius, which trades in the sport market.

Mons S. Bolin, president and chief executive officer, said the sales would strengthen the company's fleet profile and financial flexibility.

After the sale of the two containerships, Bolin said, We expect to realize a book profit totaling approximately $6.3 million and will use the proceeds to reduce the outstanding borrowing under the fully revolving credit facility.

The company also said it has temporarily suspended payment of its quarterly dividend.

On March 7, Aries said it had hired Merrill Lynch to help it review strategic alternatives to enhance shareholder value. Those alternatives could include a sale, merger or other actions, the company said. 

Source: American Shipper