Singapore-listed OSV owner Hoe Long is selling two anchor-handlers as part of a plan to exit shipping.
Middle East operator Allianz Offshore Shipmanagement is paying a combined $1.7m for the 5,150-hp Arkstar Eagle 1 and the 5,220-hp Arkstar Eagle 3 (both built 2009), it said.
Hoe Leong was restructured in 2018 and had been actively servicing its debts, but there was a delay in receipt of charter revenues owed to a subsidiary, it added.
This led to a default on repayments of a United Overseas Bank (UOB) loan.
In August, Hoe Leong received a statutory demand from the lender for payment of SGD 5.7m ($4.13m) within 21 days.
Trading in its shares was suspended in September.
UOB issued a summons on 2 October for a court hearing to place the company under judicial management.
This was adjourned until 24 October on the basis that both UOB and the shipowner are "seeking to resolve matters consensually", Hoe Leong said.
Class licences for the two anchor-handlers have just expired and the vessels are due for drydocking.
"The vessel chartering business continues to be impacted by subdued charter rates and, accordingly, affecting the revenue generated by chartering the vessels after drydocking," Heo Leong added.
Fleet to be trimmed
The owner said it now plans to "trim off" the vessel chartering business and to re-focus on its core equipment operations.
The sale is part of a restructuring plan which is currently under discussion with UOB, it said.
Net proceeds from the transaction will be SGD 2.31m.
Hoe Leong's Singapore management arm Arkstar is also listed with a platform supply vessel (PSV) and a utility ship.
Allianz last year struck a deal to buy most of the OSV fleet of restructuring Singapore owner Swissco Holdings.
The Swissco judicial managers said Allianz was paying $20.5m for 21 vessels, including six anchor-handlers, tugs, barges and workboats.
