ASSETS HELD FOR SALE

6 Months Ended

Jun. 30, 2017

ASSETS HELD FOR SALE

ASSETS HELD FOR SALE

4. ASSETS HELD FOR SALE

As of June 30, 2017, the Company classified the Gener8 Theseus,  Gener8 Noble and Gener8 Elektra as Current assets - held for sale, in the condensed 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, of $80.0 million for each of the Gener8 Theseus and Gener8 Noble, and $10.3 million for the Gener8 Elektra on the condensed consolidated balance sheet. For the three months ended June 30, 2017, the Company recorded a loss of $56.8 million, as Loss on disposal of vessels, net, related to the expected sales of the Gener8 Theseus and Gener8 Noble. For the six months ended June 30, 2017, the Company recorded a loss of $61.7 million, as Loss on disposal of vessels, net, related to the expected sales of the Gener8 Theseus, Gener8 Noble and Gener8 Elektra, on the condensed consolidated statement of operations. The vessels are expected to be sold within one year. See Note 17, Subsequent Events for more updates on recent vessel sales.

As of December 31, 2016, the Company classified the Gener8 Ulysses as Current assets - held for sale, in the condensed 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, of $30.2 million on the condensed 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, on the condensed consolidated statement of operations for the year ended December 31, 2016. The Gener8 Ulysses vessel was sold during the first quarter of 2017.