Manhattan Resources to sell vessels for $18m

It plans to dispose 22 tugs and 22 barges.

After several of its vessels suffered losses in the first half of the year, Singapore-listed coal shipping firm Manhattan Resources is planning to sell 22 tugs and 22 barges to Indonesian shipping and barge firm Karunia Samudera Lines.

The group said these vessels, which comprised about 66% of the firm's fleet, incurred a net loss of S$2 million in the half-year ended June 30.

The vessels will be sold for around $18 million (Rp.170.6 billion).

"The disposal of the vessels will result in the disposal of a substantial portion of a loss-making business segment at a premium to their book value, improve the balance sheet of the group and hence enable it to conserve its resources," Manhattan said in an announcement filed in Singapore Exchange.

It furthered that the net proceeds will be used for the general corporate purposes including funding its working capital requirements.