ASSETS HELD FOR SALE

12 Months Ended

Dec. 31, 2016

ASSETS HELD FOR SALE

ASSETS HELD FOR SALE

5. ASSETS HELD FOR SALE

As of December 31, 2016, the Company classified the Gener8 Ulysses as Current assets - held for sale, in the consolidated balance sheet, as all the criteria of ASC subtopic 360-10, Property, Plant, and Equipment (“ASC 360-10”) have been met and the transaction was qualified as assets held for sale. This vessel was written down to its fair value, less cost to sell, to $30.2 million in the consolidated balance sheet. As a result of the expected sale in 2017, the Company recorded a loss of $6.9 million as Loss on disposal of vessels, net, in the 2016 consolidated statement of operations. The Gener8 Ulysses vessel was subsequently sold during the first quarter of 2017. See Note 22,Subsequent events.  

On December 30 2015, the Company entered into an agreement to sell the 2004-built MR tanker the Gener8 Consul for $17.5 million, gross proceeds. The transaction closed in the first quarter of 2016, resulting in proceeds (net of selling expenses) of $17.0 million. As a result of the expected sale in 2016, the Company recorded a loss of $0.5 million as Loss on impairment of vessels held for sale, in the 2015 consolidated statement of operations.