Wellard Gets New Buyer for Swagman

Australia's largest live cattle exporter Wellard Wellard Limited says it is moving closer to selling the M/V Ocean Swagman after agreeing to a new $37.1 million purchase proposal for the vessel from a Panama based subsidiary of the Italian bulk shipping company Nova Marine Holdings SA.

The mid-sized vessel used by West Australian-based live exporter Wellard said that the offer is US$3.2 million higher than the previously announced proposed sale of the M/V Ocean Swagman to Heytesbury Holding Company Pty Ltd for $32.4 million.

"The Nova transaction remains subject to approval of the Nova board, however, Wellard considers that (if approved) it is likely to lead to a superior outcome than the Heytesbury transaction," said a stock exchange announcement from the company

Wellard will use the funds to pay outstanding finance on the ship, bought in 2010, and repay company creditors, particularly noteholders owed about $23m with whom Wellard continues to negotiate a standstill agreement.

Wellard's noteholders were previously expected to receive about $14.8m from the sale to Heytesbury by August 31. The original Heytesbury deal was expected to cut the group's overall debt from about $125m to around $95m.