All Leisure sells Discovery for £3m
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All Leisure Group has sold off the loss-making mv Discovery cruise ship for US$5 million (GBP3.12m).
The 43-year-old ship has been purchased by Nassau-based Liberty Resources Inc. for a lower sum than the group wanted.
It had accepted a lower cash amount than the US$9.9m (GBP6.2m) it had hoped to limit spend on further drydock and maintenance work on the ship.
In the year ending 31 October 2013 the ship had a loss of more than GBP3m.
A statement from the group said: “On 13 February 2014, the group announced that it had written down the value of Discovery to approximately £9.9m including spares and planned to dispose of it at the end of the summer.
“Although the consideration received is less than the current book value of the vessel, the board’s decision to sell mv Discovery to Liberty also took into account the absence of the future liabilities and other uncertainties associated with many other bids.”
It continued: “Several higher indicative offers were made but had weaker cash flow profiles given the prospect of staged payments over several years. Furthermore, during these extended payment periods, the Group would have remained responsible for warranting the vessel and the forthcoming winter lay-up costs of the vessel, together with the costs of meeting the requirements of the dry docking regime. It was the Board’s considered view that is was therefore in shareholders’ best interests to accept the lower cash offer in full and final settlement.”
All Leisure will release its next trading update at the end of November for the year ending 31 October 2014, which will assess the impact of cruises to the Ukraine and Crimea.
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