Nimrod Sea Assets has updated its dividend policy. it plans to pay quarterly dividends of 2 cents per share between now and March 2016. The review was triggered in part by the following news.
One of its investments, mv red 7 Alliance has been given notice that Red7Marine Offshore Limited (the charterer of the vessel) had been put into administration. The administrators (Ernst and Young) have advised that they are seeking to return the vessel to the Partnership (represented for this purpose by its General Partner, DSV Alliance AS). Nimrod Sea Assets is commencing discussions with the administrators and has activated a contingency plan to protect asset value and explore options for redeployment. They say they will make further announcements as to developments with respect to the mv Red7 Alliance in due course.
With respect to the FS Cygnus (in which the Company has a 75% economic interest), restructuring discussions have commenced with Fletcher Shipping Limited who are the charterer of the vessel. These discussions are expected to be completed by 31 July 2015 and will likely result in a new charter on less favorable terms. Any changes to the chartering arrangements must be approved by Sparebank 1 SR Bank ASA who have a mortgage on the FS Cygnus. Again they will keep shareholders updated on this.
The Board are also conscious that the fund is yet to be fully invested. they are considering whether they should hand back uninvested cash to shareholders and revisit the dividend policy in March 2016.
NSA : Nimrod Sea Assets amends dividend, investment in administration