Dockwise reduces debt

Dockwise expects to reduce its debt by $58 million to a total of just below $963 million by the end of the second quarter.

Offshore staff

HAMILTON, Bermuda -- Dockwise expects to reduce its debt by $58 million to a total of just below $963 million by the end of the second quarter. The reduction will be driven by the release of the remaining $40.6 million held in the Mighty Servant 3 escrow account; buy back of $8.5 million of debt; sale of Dock Express 12; and scheduled mandatory repayments of $5 million.

Following its 18-month refurbishment, the Mighty Servant 3 will shortly rejoin the fleet of Dockwise Transport. Delivery of the vessel triggers the release of the remaining $40.6 million currently held in escrow to cover the costs of reinstatement and vendor compensation, the company says.

Settlement of a previously announced debt buy-back is scheduled for June 30. As a result, the group's debt will reduce by some $8.5 million.

Dockwise has also received a $4-million payment after the delivery of Dock Express 12 to its new owner.

In addition, approximately $5 million of the group's free cash flow has been applied over the quarter for mandatory lender repayments.

06/25/2009

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