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Greek shipping company Diana Shipping has decided to scrap its 2004-built vessel Melite which sustained damage to its hull as a result of grounding earlier this year.
The company informed that it has signed, through a separate wholly-owned subsidiary, a memorandum of agreement (MOA) to sell to an unnamed party the vessel for demolition, on an “as is where is” basis.
The sale price is around USD 2.52 million before commissions, according to Diana.
The 76,400 dwt vessel is expected to be delivered to the buyer until October 30, 2017.
As explained, the owner of Melite has submitted a notice of abandonment to its hull and machinery underwriters, who have not, as of today’s date, accepted this notice. However, they have agreed to the sale of the vessel on the terms outlined in the above mentioned MOA.
Diana said that this notice of abandonment forms part of owners’ claim against the vessel’s hull and machinery underwriters resulting from the grounding. If accepted by the insurers, the notice will result in the payment to owners of the vessel’s total insured value of approximately USD 14 million.
On July 26, Melite grounded off the coast of Pulau Laut, Indonesia. Following the indicent, no injuries and no signs of pollution were reported except the physical damage to the vessel.
At the time of the grounding, the Panamax was chartered to Germany-based Uniper Global Commodities. However, since July, Melite has been on an off-hire period during an active charter, Diana’s data shows.
Once the sale of Melite is completed, Diana Shipping’s fleet will comprise 50 dry bulk vessels. As of today, the combined carrying capacity of the company’s fleet, including Melite, is approximately 5.9 million dwt, with a weighted average age of 8.2 years.
