Assets Held For Sale

3 Months Ended

Mar. 31, 2015

Assets Held For Sale [Abstract]

Assets Held For Sale

NOTE 7 – ASSETS HELD FOR SALE

As a result of continued evaluation of our strategic alternatives, during the fourth quarter of 2014, we committed to a plan to sell three Handysize vessels and oneJones Act Tug-Barge unit that was inactive.  Upon approval of this plan, we classified the Handysize vessels and their related equipment as Long Term Assets Held for Sale, valued at approximately $48.7 million at December 31, 2014.  During the first quarter of 2015, we sold one of the Handysize vessels and its equipment and paid off related debt.  At March 31, 2015, the remaining two Handysize vessels held for sale were valued at approximately $32.5 million.  At such date, we owed approximately $27.0 million under debt incurred to purchase these two vessels, which we plan to pay off if and when we sell such vessels.  The Tug-Barge unit and inventory related to the Handysize vessels are classified as Short Term Assets Held for Sale, and were valued at approximately $6.8 million at March 31, 2015 and $7.0 million at December 31, 2014.  As a result of these classifications, there was no depreciation expense related to these assets during the first quarter of 2015.If weak dry bulk markets continue to put downward pressure on charter rates or we elect to market other vessels for sale, we might incur additional impairment charges in the future.

During 2014, the Company adopted ASU 2014-8 which changed the definition of discontinued operations.  In accordance with this guidance, we determined that the assets held for sale did not represent a strategic shift that would have a major effect on our operations and financial results.  As such, we did not report the financial results related to these assets as discontinued operations.