5. DELIVERY AND DISPOSAL OF VESSELS

Delivery of Vessels

During the nine months ended September 30, 2017, the Company took delivery of the following 2017-built VLCC newbuildings. Upon delivery, all of these vessels entered into the VL8 Pool. The Company has made all shipyard installment payments, and there is no outstanding payable balance in respect of each vessel.


		Borrowings to
		Fund Vessel's
Vessel Name	Date of Delivery	Delivery (1)		Credit Facility
		(Dollars in thousands)
Gener8 Hector	January 6, 2017	$	49,500	Korean Export Credit Facility
Gener8 Ethos	March 9, 2017		50,631	Korean Export Credit Facility

(1)

Amounts reflect the borrowings incurred under the Korean Export Credit Facility to fund the delivery of the indicated newbuilding. For more information see Note 10, LONG-TERM DEBT.

Disposal of Vessels

On July 27, 2017, the Company entered into an agreement for the sale of the 2002-built Aframax tanker the Gener8 Elektra for $10.5 million in gross proceeds. As a result of the sale, the Company recorded a loss of $1.0 million and $5.9 million as Loss on disposal of vessels, net, on the condensed consolidated statement of operations for the three and nine months ended September 30, 2017, respectively. On August 15, 2017, the sale of the Gener8 Elektra was finalized. The Company used the net proceeds from the sale to repay $7.6 million of the related portion of the senior secured debt outstanding under the Refinancing Facility associated with the vessel.

On July 20, 2017 the Company entered into agreements for the disposition, demolition and scrapping of the 1999-built Suezmax tankers the Gener8 Phoenix and Gener8 Horn for gross proceeds of $7.8 million and $8.0 million, respectively. As a result of the disposition, the Company recorded a loss of $16.2 million as Loss on disposal of vessels, net, on the condensed consolidated statement of operations for the three and nine months ended September 30, 2017. The disposition of the Gener8 Phoenix and the Gener8 Horn was finalized on August 9, 2017 and August 1, 2017, respectively. The Company used the net proceeds along with available cash to repay $8.2 million and $7.6 million, for the Gener8 Horn and the Gener8 Phoenix, respectively, the related portion of the senior secured debt outstanding under the Refinancing Facility associated with these vessels.

On May 25, 2017, the Company entered into an agreement for the sale of the 2002-built Suezmax tanker Gener8 Orion for $13.0 million in gross proceeds. On June 13, 2017, the sale was finalized and the Company recorded a net loss of $10.1 million, as Loss on vessel disposal of vessels, net, on the condensed consolidated statement of operations for the nine months ended September 30, 2017. The Company used the net proceeds to repay $11.1 million of the related portion of the senior secured debt outstanding under the Refinancing Facility associated with the vessel.

On May 2, 2017, the Company entered into an agreement for the sale of the 2016-built VLCC tanker the Gener8 Theseus for $81.0 million in gross proceeds. As a result of the sale, the Company recorded a loss of $31.9 million as Loss on disposal of vessels, net, on the condensed consolidated statement of operations for the nine months ended September 30, 2017. On August 7, 2017, the sale of the Gener8 Theseus was finalized. The Company used the net proceeds to repay $50.1 million of the related portion of the senior secured debt outstanding under the Korean Export Credit Facility associated with the vessel.

On May 2, 2017, the Company entered into an agreement for the sale of the 2016-built VLCC tanker the Gener8 Noble for $81.0 million in gross proceeds. As a result of the sale, the Company recorded a loss of $25.4 million as Loss on disposal of vessels, net, on the condensed consolidated statement of operations for the nine months ended September 30, 2017. On September 15, 2017, the sale of the Gener8 Noble was finalized. The Company used the net proceeds to repay $50.4 million of the related portion of the senior secured debt outstanding under the Korean Export Credit Facility associated with the vessel.

On April 3, 2017, the Company entered into an agreement for the sale of the 2002-built Aframax tanker Gener8 Daphne for $10.5 million in gross proceeds. On May 13, 2017, the sale was finalized and the Company recorded a net loss of $5.1 million, as Loss on disposal of vessels, net, on the condensed consolidated statement of operations for the nine months ended September 30, 2017. The Company used the net proceeds to repay $8.1 million of the related portion of the senior secured debt outstanding under the Refinancing Facility associated with the vessel.

On January 25, 2017, the Company entered into an agreement for the sale of the 2003-built VLCC tanker Gener8 Ulysses for $30.5 million in gross proceeds. As of December 31, 2016, the Company classified the Gener8 Ulysses as held for sale on the consolidated balance sheet. 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. On February 1, 2017, the sale was finalized and the Company used the net proceeds to repay $20.0 million of the related portion of the senior secured debt outstanding under the Refinancing Facility associated with the vessel.

On December 5, 2016, the Company entered into an agreement for the sale of the 2000-built Suezmax tanker Gener8 Spyridon for $13.9 million in gross proceeds. On December 19, 2016, the sale was finalized and the Company recorded a net loss of $7.1 million, as Loss on disposal of vessels, net, on the condensed consolidated statement of operations for the year ended December 31, 2016. The Company used the net proceeds to repay $11.7 million of the related portion of the senior secured debt outstanding under the Refinancing Facility associated with the vessel.

On August 8, 2016, the Company entered into an agreement for the sale of the 2001-built VLCC tanker Genmar Victory for $29.0 million in gross proceeds. On August 25, 2016, the sale was finalized and the Company recorded a net loss of $7.3 million, as Loss on disposal of vessels, net, on the condensed consolidated statement of operations for the year ended December 31, 2016. The Company used the net proceeds to repay $19.4 million of the related portion of the senior secured debt outstanding under the Refinancing Facility associated with the vessel.

On July 22, 2016, the Company entered into an agreement for the sale of the 2001-built VLCC tanker Genmar Vision for $28.0 million in gross proceeds. On August 5, 2016, the sale was finalized and the Company recorded a net loss of approximately $3.2 million, as Loss on disposal of vessels, net, on the condensed consolidated statement of operations for the year ended December 31, 2016. The Company used the net proceeds to repay approximately $19.4 million of the related portion of the senior secured debt outstanding under the Refinancing Facility associated with the vessel.