ASSETS HELD FOR SALE

3 Months Ended

Mar. 31, 2017

ASSETS HELD FOR SALE

ASSETS HELD FOR SALE

4. ASSETS HELD FOR SALE

As of March 31, 2017, the Company classified the Gener8 Daphne and Gener8 Elektra 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. These vessels were written down to their fair value, less cost to sell, to $10.3 million for each vessel in the consolidated balance sheet. As a result of the expected sale, the Company recorded a loss of $4.9 million, for each vessel, as Loss on disposal of vessels, net, in the three months ended March 31, 2017 consolidated statement of operations. The Gener8 Daphne and Gener8 Elektra vessels are expected to be sold during the second quarter of 2017.

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 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 sold during the first quarter of 2017.