-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Q5KE9VLicIrG/1KaTD8mSqGjIQ0dStgdbCf1GkxYJDfFkv8CgNZxleYVNu41vZKb tx5FsQYfWt/3bSciWfqwPQ== 0000950129-05-011045.txt : 20051115 0000950129-05-011045.hdr.sgml : 20051115 20051114173320 ACCESSION NUMBER: 0000950129-05-011045 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20051111 ITEM INFORMATION: Completion of Acquisition or Disposition of Assets ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20051115 DATE AS OF CHANGE: 20051114 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Quintana Maritime LTD CENTRAL INDEX KEY: 0001325098 STANDARD INDUSTRIAL CLASSIFICATION: DEEP SEA FOREIGN TRANSPORTATION OF FREIGHT [4412] IRS NUMBER: 000000000 STATE OF INCORPORATION: 1T FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-51412 FILM NUMBER: 051203125 BUSINESS ADDRESS: STREET 1: PANDORAS 13 & KYPROU STREET CITY: GLYFADA STATE: J3 ZIP: 166 74 BUSINESS PHONE: 011-30-210-898-5056 MAIL ADDRESS: STREET 1: PANDORAS 13 & KYPROU STREET CITY: GLYFADA STATE: J3 ZIP: 166 74 8-K 1 h30457e8vk.htm QUINTANA MARITIME LIMITED e8vk
 

 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED)
November 11, 2005
QUINTANA MARITIME LIMITED
(Exact name of registrant as specified in its charter)
         
Marshall Islands
(State or other jurisdiction of
incorporation or organization)
  000-51412
(Commission
File Number)
  98-0453513
(IRS Employer
Identification No.)
Quintana Maritime Limited
c/o Quintana Management LLC
Pandoras 13 & Kyprou Street
166 74 Glyfada
Greece

(Address of principal executive office)
011-30-210-898-5056
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 


 

Item 2.01 Completion of Acquisition of Disposition of Assets
     On November 11, 2005, the Company completed the acquisition of Kirmar, a 165,500 dwt Capesize vessel built in 2001, from Brightboat Shipping Co., Ltd. The Company had agreed to buy the vessel under the terms of a Memorandum of Agreement dated September 5, 2005.
     On September 8, 2005, the Company advanced the seller $6.8 million, representing 10% of the total purchase price of $68.4 million. On November 11, the Company paid the balance of the purchase price with $9.6 million cash on hand and $52.0 million borrowed under its revolving credit facility.
     On November 14, 2005, the Company announced the delivery of Kirmar by a press release, which is attached as an exhibit to this report.
     Consistent with shipping industry practice, we treat the acquisition of a vessel (whether acquired with or without charter) as the acquisition of an asset rather than a business. We believe that, under the applicable provisions of Rule 11-01(d) of Regulation S-X under the Securities Act, the acquisition of our vessels does not constitute the acquisition of a “business,” for which historical or pro forma financial information would be provided pursuant to Rules 3-05 and 11-01 of Regulation S-X.
     In general, we believe that there is little continuity between the acquired vessels’ operations prior to and after the acquisition, and therefore disclosure of prior historical financial information is not material to an understanding of future operations. We generally enter into new charter contracts with our customers that commence following delivery of the vessel to us. These new charter contracts have different financial terms than the old charter contracts, which were entered into under generally different market conditions by different parties.
     We take the following steps before an acquired vessel commences operations, which substantially eliminate any continuity with operations prior to the vessel’s acquisition:
    put in place different commercial management, with a different marketing system and sales force;
 
    put in place different technical management;
 
    arrange for a new crew for the vessel;
 
    replace all hired equipment on board, such as gas cylinders and communication equipment;
 
    negotiate and enter into new insurance contracts for the vessel through our own insurance brokers;
 
    register the vessel under a flag state and perform the related inspections in order to obtain new trading certificates from the flag state;
 
    implement a new planned maintenance program for the vessel; and
 
    ensure that the new technical manager obtains new certificates for compliance with the safety and vessel security regulations of the flag state.
     As a result, we believe that whether the vessel is acquired with or without a time charter, the lack of continuity between the acquired vessel’s operations prior to and after the acquisition makes prior financial information not material. For this reason, consistent with shipping industry practice, we generally do not obtain from the seller historical operating or financial data for the vessels we acquire, other than through inspection of the physical condition of the vessels and examinations of classification society records. Most vessels are sold under a standardized agreement, which, among other things, provides the buyer with the right to inspect the vessel and the vessel’s classification society records. The standard agreement does not give the buyer the right to inspect, or receive copies of, the historical operating or financial data of the vessel. Prior to the delivery of a purchased vessel, the seller typically removes from the vessel all records, including past financial records and accounts related to the vessel. We do not obtain the historical operating or financial data for the vessels from the sellers because that information is not material to our decision to make acquisitions, nor do we believe it would be helpful to potential investors in our common stock in assessing our business or profitability.

 


 

Item 9.01 Financial Statements and Exhibits
     
10.1
  Memorandum of Agreement dated September 5, 2005 (incorporated by reference to Exhibit 10.7 to the Company’s Quarterly Report on Form 10-Q for the Quarter Ended September 30, 2005).
 
   
99.1
  Press release of Quintana Maritime Limited dated November 14, 2005.

 


 

SIGNATURES
     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
         
  QUINTANA MARITIME LIMITED
 
 
  By:   /s/ Steve Putman    
    Steve Putman   
    Vice President and General Counsel   
 
Dated: November 14, 2005

 


 

EXHIBIT INDEX
     
 
   
10.1
  Memorandum of Agreement dated September 5, 2005 (incorporated by reference to Exhibit 10.7 to the Company’s Quarterly Report on Form 10-Q for the Quarter Ended September 30, 2005).
 
   
99.1
  Press release of Quintana Maritime Limited dated November 14, 2005.
        .

 

EX-99.1 2 h30457exv99w1.htm PRESS RELEASE DATED NOVEMBER 14, 2005 exv99w1
 

Exhibit 99.1
(Quintana Maritime Limited Logo)
Quintana Maritime Limited
Pandoras 13 & Kyprou Street
166 74 Glyfada
Greece
NEWS RELEASE
QUINTANA MARITIME LIMITED
TAKES DELIVERY OF ITS SECOND CAPESIZE BULK CARRIER
ATHENS, Greece, November 14, 2005 - Quintana Maritime Limited (NASDAQ: QMAR) today announced that it took delivery of its second Capesize bulk carrier on November 11, 2005. The vessel, named Kirmar, was built in 2001 by China Shipbuilding Corporation in Taiwan and has a carrying capacity of 165,500 deadweight tons (dwt).
The purchase price of the vessel was approximately $68.4 million, of which Quintana had previously advanced the sellers a cash deposit of $6.85 million, or 10% of the aggregate purchase price of the vessel. On delivery, the Company paid $9.6 million in cash, and the balance of $52.0 million was funded through its revolving credit facility.
Stamatis Molaris, Chief Executive Officer of Quintana Maritime Limited, stated, “Delivery of this second Capesize vessel has expanded Quintana Maritime’s fleet to 8 Panamaxes and 2 Capesizes, putting Quintana amongst the largest dry-bulk fleets in the industry with total cargo-carrying capacity of 916,072 dwt,” since it commenced operations in April 2005.“Mr. Molaris, added, “While the Capesize market continues to rise, we are very pleased to have fixed Kirmar with Transfield on a 60-day charter at $61,000 per day, commencing on November 16, 2005.”
UPDATED FLEET PROFILE
                                 
Vessel   Type   Dwt   Year Built   Age (in years)   Delivered to QMAR
 
                               
Fearless 1
  Panamax     73,427       1997       8     4/11/2005
King Coal
  Panamax     72,873       1997       8     4/12/2005
Coal Glory
  Panamax     73,670       1995       10     4/13/2005
Coal Age
  Panamax     72,861       1997       8     5/4/2005
Iron Man
  Panamax     72,861       1997       8     5/6/2005
Barbara
  Panamax     73,390       1997       8     7/21/2005
Coal Pride
  Panamax     72,600       1999       6     8/16/2005
Linda Leah
  Panamax     73,390       1997       8     8/22/2005
Iron Beauty
  Capesize     165,500       2001       4     10/18/2005
Kirmar
  Capesize     165,500       2001       4     11/11/2005
 
                               
Total Fleet
  10 Vessels     916,072             7.2 years average    
 
                               

 


 

Page 2 of 2

ABOUT QUINTANA MARITIME LIMITED
Quintana Maritime Limited, based in Greece, is an international provider of dry bulk cargo marine transportation services. The company currently owns and operates a fleet of eight Panamax size vessels and two Capesize vessels with a total carrying capacity of 916,072 dwt and an average age of approximately 7.2 years.
Forward Looking Statement
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company’s growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as “expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations of such words and similar expressions are intended to identify forward-looking statements. Such statements include comments regarding expected time charters. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to changes in the demand for dry bulk vessels, competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company’s filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
Company Contact:
Mark A. Kahil
Vice President, Investor Relations
Quintana Maritime Limited
601 Jefferson St. Suite 3600
Houston, TX 77002
713.751.7527
mkahil@quintanamaritime.com
-end-

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