FreeSeas initiates fleet renewal with disposal of ageing bulk ship

FreeSeas initiates fleet renewal with disposal of ageing bulk ship
FREE FIGHTER sold $11 million

FreeSeas Inc. the Greek dry bulk shipping company, announced yesterday that it has agreed to the sale of it 39,850 DWT, 1982 built, Handysize mv FREE FIGHTER for US $11,075,000 resulting in a capital gain of approximately US$1.6 million for FreeSeas.

"We are actively pursuing opportunities to secure additional tonnage for our fleet," said Mr. Ion Varouxakis, Chairman of the Board, President and Chief Executive Officer. "In line with our previously announced management and company restructuring, we believe that that the sale of the FREE FIGHTER will provide a substantial part of the cash needed to proceed with the restructuring. As the dry bulk sector continues to mature, and as FreeSeas looks for opportunities to capitalize on this market opportunity, the sale of the FREE FIGHTER will provide us with increased resources to execute on our corporate initiatives."

The sale of FREE FIGHTER will translate into an immediate improvement in FreeSeas balance sheet, said the company, with a US$4.8 million reduction in outstanding debt and an effective net cash increase of approximately US$5.5 million. Upon delivery of the vessel to its new owner, FreeSeas outstanding long-term bank debt will be reduced to US$5.0 million. The Company plans to take advantage of the increased resources at its disposal as it actively explores opportunities for fleet expansion and modernization.

Mr. Varouxakis concluded, "The resulting capital gain and cash generated from the sale of the mv FREE FIGHTER we believe will provide FreeSeas with adequate resources to pursue the acquisition of currently available second-hand tonnage in the dry bulk sector."

The FREE FIGHTER was previously called SOUTH GLORY and TINA 1 and was built in 1982 in Varna, Bulgaria. She is 186.2 metres long and 23,696 grt.