Note 13 - Investments in Unconsolidated Joint Ventures

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

13. Investments in unconsolidated joint ventures

On

March 30, 2017,

the Company, through its wholly-owned subsidiary, Lyndon International Co., acquired a

49%

ownership interest in City of Athens from Fly Free Company, a Marshall Islands corporation and wholly-owned subsidiary of the Lax Trust, for an aggregate purchase price of

$4,200.

City of Athens is a party to a newbuilding contract for the construction of Hull

No

S-

443,

a

50,000

dwt newbuilding product/chemical scheduled for delivery from Hyundai in

January 2018.

Furthermore on

March 30, 2017,

the Company, through its wholly-owned subsidiary, Gramos Shipping Company Co., acquired a

49%

ownership interest in Eco Nine from Maxima International Co., a Marshall Islands corporation and wholly-owned subsidiary of the Lax Trust, for an aggregate purchase price of

$3,500.

Eco Nine is a party to a newbuilding contract for the construction of Hull

No

S-

444,

a

50,000

dwt newbuilding product/chemical scheduled for delivery from Hyundai in

April 2018.

On

June 14, 2017

the company acquired an additional

1%

interest in City of Athens and in Eco Nine for an aggregate consideration of

$157

,

increasing the Company’s interest in both companies to

50%

.

On

June 3

and

May 1, 2017

the Company advanced

$1,495

to City of Athens and another

$1,495

to Eco Nine respectively to cover upcoming newbuilding installments. Finally fees and costs related to the investments amounting to

$353

were accounted for as part of the investment.

On

June 30, 2017

the Lax Trust sold its

50%

remaining interest in City of Athens and in Eco Nine to Gunvor S.A. (“Gunvor”), a non-affiliated company and on

July 7, 2017

the Company entered into a joint venture agreement with Gunvor. Furthermore upon both vessels delivery from Hyundai, each of the

two

vessels will enter into time charter employments with Clearlake Shipping Pte Ltd, a subsidiary of Gunvor, for

three

years firm plus

two

additional optional years. The Company's exposure is limited to its share of the net assets of City of Athens and Eco Nine proportionate to its

50%

equity interest in these companies. Generally, the Company shares in the profits and losses, cash flows and other matters relating to its investments in City of Athens and in Eco Nine in accordance with its ownership percentage. The vessels are managed by CSM, pursuant to management agreements. The Company accounts for investments in joint ventures using the equity method since it has significant influence but

not

control over the investment. The Company is obligated to contribute funds for yard installments in relation to the construction of the newbuilding vessels of the companies, as needed and proportionate to its

50%

equity interest in these companies.

A condensed summary of the financial information for equity accounted investments

50%

owned by the Company shown on a

100%

basis are as follows (in thousands):

	June 30, 2017
	City of Athens		Eco Nine
Current assets	37		37
Non-current assets	4,740		3,136
Current liabilities	-		-
Long-term liabilities	-		-
Net operating revenues	-		-
Net loss	(2	)	(18	)