Assets Held For Sale

3 Months Ended

Mar. 31, 2016

Assets Held For Sale [Abstract]

Assets Held For Sale

NOTE 4 – ASSETS HELD FOR SALE

Since 2014, we have encountered certain challenges related to complying with our debt covenants and overall liquidity restraints. In an attempt to strengthen our financial position, on October 21, 2015, our Board of Directors approved a plan to restructure the Company to reduce our debt to more manageable levels and to increase our liquidity. Since that date, we have modified the Strategic Plan in response to new developments, including our efforts to sell assets and our ongoing discussions with our lenders, lessors, directors and others.

Pursuant to the Strategic Plan, as amended, we classified the following assets as held for sale at December 31, 2015: (i) the assets in our Dry Bulk Carriers segment, (ii) the inactive tug included in our Jones Act segment, (iii) our minority interests in mini-bulkers in our Dry Bulk Carriers segment, (iv) our minority interests in chemical and asphalt tankers in our Specialty Contracts segment, (v) our New Orleans office building, and (vi) a small, non-strategic portion of our operations that owns and operates a certified rail-car repair facility near the port of Mobile, Alabama.

During the first quarter of 2016, we completed the following sales:

· We sold our two handysize vessels for cash proceeds of approximately $20.7 million, which we used to partially pay down the related debt of $25.1 million. Prior to sale, these vessels were included in our Dry Bulk Carriers segment and had previously been written down to fair value less costs to sell.

· We sold our capesize bulk carrier for cash proceeds of approximately $10.1 million, which was used to pay off the related debt of $8.6 million. We used the remaining sales proceeds of $1.5 million to pay down the outstanding principal balance on the handysize vessels discussed above. Prior to sale, this vessel was also included in our Dry Bulk Carriers segment and had previously been written down to fair value less costs to sell.

· We exchanged our 25% and 23.68% shareholding interests in Oslo Bulk AS and Oslo Bulk Holding Pte Ltd, respectively, which together deployed fifteen mini-bulkers in the spot market or on short- to medium-term time charters, for a 2008 mini-bulker. Prior to the exchange, these interests were included in our Dry Bulk Carriers segment. Immediately following the exchange, we sold the 2008 mini-bulker, and on April 1, 2016, we commenced providing technical services for this vessel on behalf of its owner. We intend to report all revenues from these services within our Specialty Contracts segment.

· We sold our 30%interests in Saltholmen Shipping Ltd and Brattholmen Shipping Ltd, which were organized to purchase and operate two newbuilding chemical tankers and two asphalt tankers, for $5.7 million and $1.5 million, respectively.

As of March 31, 2016, we continued to classify as held for sale the following assets: (i) the inactive tug included in our Jones Act segment, (ii) our New Orleans office building, and (iii) a small, non-strategic portion of our operations that owns and operates a certified rail-car repair facility near the port of Mobile, Alabama. While we continue to actively market these assets, we have ceased depreciating them. Subsequent to March 31, 2016, we sold our New Orleans office building in exchange for relief from amounts owed to the construction company, which we included in accounts payable and other accrued expenses on our Condensed Consolidated Balance Sheet at March 31, 2016. For further discussion regarding this sale, refer to Note 22 – Subsequent Events.