Proceeds from the transaction to be used for debt reduction
Singapore-based Trust Energy Resources (TERPL), a wholly owned subsidiary of Tata Power Company has entered into definitive agreements with Oldendorff Carriers GmbH & Co. KG, Germany for the sale of three ships at an estimated consideration of USD 212.76 million.The sale of the three ships, MV Trust Agility, MV Trust Integrity and MV Trust Amity, currently owned by TERPL is expected to be concluded in the next three to four weeks and is subject to necessary regulatory approvals.
The objective of the transaction is to have an asset-light model for the shipping requirements of the company and the sale proceeds will be used towards reducing the debt as part of the overall restructuring plan of the company.
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