Hong Kong-based New Century Group has reported that its Singapore subsidiary, New Century Cruise Lines, has sold the 1969-built gambling cruise ship ‘Leisure World’ to an intermediary for recycling.
In a Hong Kong Stock Exchange filing, the company said that a price of $3,591,880 was agreed.
The purchaser was NKD Maritime Limited, a UK incorporated company with limited liability.
The 1,252 pax cruise ship was sold on the basis of demolition only.
She is expected to be delivered between 15th May to 25th May, 2021, subject to extension in accordance with the terms of the Agreement.
New Century said that the global outbreak of COVID-19 had severely affected the company’s cruise ships operations. Border closure, travel restrictions and compulsory quarantine measure imposed by the governments of Singapore and Malaysia from mid-March 2020 onwards led to a suspension of operations.
The Group explained that it not only was unable to receive the charter fees during the period of suspension and did not generate any revenue, but also incurred a special daily subsidy of Sing$5,000 for her maintenance since mid-March 2020 and thus suffered a loss.
Taking advantage of a strong scrap market, based on the scrap metal value estimated to be recycled from the vessel, this would be is higher than her book value.
In addition, it was reported elsewhere that Jackston Maritime’s 1967-built 12,800 gt ‘Amusement World’, which was also operating for New Century Cruise Lines, was also sold for recycling.
