SEPTEMBER 23, 2013 — Dubai-based tanker operator Gulf Navigation Holdings, which posted a $40.3 million annual loss last year, plans to shed its two VLCCs, Gulf Sheba and Gulf Eyadah.

On September 16, Gulf Navigation disclosed that Gulf Sheba had been arrested while discharging in Rotterdam "when DNB, agent of the lenders for Gulf Sheba Corporation, issued notice of arresting the vessel at Rotterdam. The reason for arrest is default in repayment of interest and principal toward end of July 2013."

Gulf Navigation said then that it was negotiating with the lenders for release of the vessel and that the lenders might insist on selling the vessel to repay their obligations. The company also disclosed that it had been inviting and discussing proposals from prospective buyers of the vessel for the past few months."

Now the company says that its Board of Directors is to recommend the sale of both VLCCs at an Extraordinary General Meeting.