Dockwise Reduces Debt by $58m in Q2

Dockwise announced that it expects to reduce its debt by a total of $58m to just below $963m by the end of Q2 2009. The reduction will be driven by:
•    Release of the remaining $40.6 million held in the Mighty Servant 3 escrow account
•    Successful buy back of $ 8.5 million of debt
•    $4m in proceeds from the sale of Dock Express 12
•    Scheduled mandatory repayments of $5 million

Following its 18-month refurbishment, MV Mighty Servant 3 will shortly rejoin the fleet of Dockwise Transport B.V., a wholly owned subsidiary of Dockwise Ltd. Mighty Servant 3 will bring Dockwise's total fleet to 20 semi submersible vessels. Delivery of the vessel triggers the release of the remaining $40.6m currently held in escrow to cover the costs of reinstatement and vendor compensation.
 
Settlement of the previously announced debt buy back is scheduled for 30 June 2009.  As a result, the group's debt will reduce by some $8.5m.
 
Dockwise agreed the sales of Dock Express 10 and 12 in 2008 as part of its strategy to optimize fleet composition. The group received payment of $4m in Q2 2009 after the delivery of Dock Express 12 to its new owner. Dock Express 10 was delivered in 2008 and payment received accordingly.
 
In addition, approximately $5m of the group's free cash flow has been applied over the quarter for mandatory lender repayments.
 
André Goedée, Chief Executive, Dockwise Ltd, said "The return of close to $ 60 million to our lenders is a significant step towards Dockwise's aim of securing the gearing targets we have set for year end 2009. Reduction of our debt position is a key priority and I am confident that this step, combined with the continued free cash flow generation, will enable us to achieve the Board's target of reducing the net debt to less than three times EBITDA.”

(www.dockwise.com)