Our client is a shipping group comprised of various Cyprus companies under the Tonnage Tax regime. Recently they took a strategic decision and decided to replace approximately half of their cargo ships (Capesize) with Handy size carriers. This involved the disposal of the old vessels, the financing of the new vessels as well as the restructuring of the group into two distinct operations.
We reviewed the key documents of the transaction from an accounting and IFRS Cyprus point of view. Together with the Cypriot legal counsel, we considered the refinancing of the new vessels and the impact on the balance sheet of the company. Also, we advised the client on a number of financing methods by which the new group can be funded in a combination of debt and equity.
The result is an efficient shipping structure reflecting the new operating realities of the group and flexibilities on injecting and extracting cash from the shipowner companies.
Should your circumstances resemble the above, we are at your disposal to assist you and discuss your own circumstances.
Head of Audit and Assurance