Globus Maritime (AIM: GLBS), a dry bulk marine transportation company, slumped 20% after it announced that it been forced to cut the price of a vessel it agreed to sell to Romanos Maritime.
Globus has originally entered into a Memorandum of Understanding in September to sell its 'Ocean Globe' handymax dry bulk vessel for approximately US$52 million in cash. Today the company said it had agreed to a reduced price of US$37 million, a whopping 29% drop in the price. As part of the revised deal, Romanos Maritime has paid a US$10.45 million deposit.
Globas stated that it still expected to report a capital gain of US$15 million on the sale.
George Karageorgiou, CEO of Globus Maritime, commented, "The credit crisis has curtailed shipping activity as companies trading goods cancel contracts because of the mounting difficulties in obtaining trade and other finance.
The reduction in dry bulk trade has caused a major correction in the dry freight market, and consequently in vessel values. Furthermore, the credit crisis has caused a number of banks to withdraw previously agreed financing for vessels and regrettably we have seen a number of previously agreed vessel sales being either severely renegotiated or "dropped" all together.
"In this environment, the sale of the M/V Ocean Globe, even at the reduced price, is profitable for the Company, as we expect to realize a gain of US$15 million and thereby enhance our liquidity and financial strength. The Directors believe this is in the best interest of our shareholders in the current market conditions."