Star Borealis sells rights to damages from Pan Ocean

Star Borealis sells rights to damages from Pan Ocean

Singapore: Star Borealis, a subsidiary of Star Bulk Carriers, has sold the rights to its adjudication claim for damages from Singapore-listed Pan Ocean to an unnamed third party.

Star Borealis filed a claim with the Seoul Central District Court, South Korea, for damages and due hire after Pan Ocean prematurely terminated its long-term charter of the bulk carrier MV Star Borealis (179,700 DWT, built 2011).

Star Borealis today said it has negotiated, sold and assigned the rights to the adjudicated claim to an unrelated third party against a consideration of $8,016,000.

NASDAQ-listed Star Bulk will gain approximately $9.38m in relation to this sale, “which includes the extinguishment of a $1.36m liability related to the fuel and lubricants that remained on board the vessel at the time of the charter repudiation,” an exchange filing said.

Pan Ocean, previously known as STX Pan Ocean, terminated the MV Star Borealis’ charter last July due to insufficient cash flow. [7/11/14]