XML 33 R21.htm IDEA: XBRL DOCUMENT

Financial Instruments and Fair Value Disclosures

12 Months Ended

Dec. 31, 2021

Financial Instruments and Fair Value Disclosures

Financial Instruments and Fair Value Disclosures

14.Financial Instruments and Fair Value Disclosures

Interest rate risk and concentration of credit risk: Financial instruments, which potentially subject the Company to significant concentrations of credit risk, consist principally of cash and trade accounts receivable. The ability and willingness of each of the Company’s counterparties to perform their obligations under a contract depend upon a number of factors that are beyond the Company’s control and may include, among other things, general economic conditions, the state of the capital markets, the condition of the shipping industry and charter hire rates. The Company’s credit risk with financial institutions is limited as it has temporary cash investments, consisting mostly of deposits, placed with various qualified financial institutions and performs periodic evaluations of the relative credit standing of those financial institutions. The Company limits its credit risk with accounts receivable by performing ongoing credit evaluations of its customers’ financial condition and by receiving payments of hire in advance. The Company, generally, does not require collateral for its accounts receivable and does not have any agreements to mitigate credit risk.

During 2021, 2020 and 2019, charterers that individually accounted for 10% or more of the Company’s time charter revenues were as follows:


Charterer		2021		2020		2019
Cargill International SA		10	%	18	%	16	%
Koch Shipping PTE LTD. Singapore		*		16	%	14	%
Swissmarine Pte. Ltd		*		*		18	%
Glencore Agriculture B.V., Rotterdam		*		*		12	%

*Less than 10%

The Company is exposed to interest rate fluctuations associated with its variable rate borrowings. Currently, the company does not have any derivative instruments to manage such fluctuations.

Fair value of assets and liabilities: The carrying values of financial assets reflected in the accompanying consolidated balance sheet, approximate their respective fair values due to the short-term nature of these financial instruments.

The fair value of long-term bank loans with variable interest rates approximates the recorded values, generally due to their variable interest rates.

Fair value measurements disclosed

As of December 31, 2021, the New Bond having a fixed interest rate and a carrying value of $125,000 (Note 7) had a fair value of $128,750 determined through the Level 1 input of the fair value hierarchy as defined in FASB guidance for Fair Value Measurements.

Other Fair value measurements


				Quoted Prices in		Significant Other
		December 31,		Active Markets		Observable Inputs		Total
Description (in thousands of US Dollars)		2021		(Level 1)		(Level 2)		gains/(loss)
Non-recurring fair value measurements
Investments in related parties (1)		7,575				7,575


				Quoted Prices in		Significant Other
		December 31,		Active Markets		Observable Inputs		Total
		2020		(Level 1)		(Level 2)		gains/(loss)
Non-recurring fair value measurements
Long-lived assets held for use (2)		166,430				166,430		(93,338)
Long-lived assets held for use - Calipso (3)		7,330				7,330		201
Long-lived assets held for sale (4)		23,361		23,361				(8,700)
Total non-recurring fair value measurements		197,121		23,361		173,760		(101,837)

(1)

On November 29, 2021, Series B preferred shares and Series C preferred shares were recorded at $5 and $7,570, respectively, being the fair value of the shares on the date of issuance to the Company by OceanPal (Note 4).

(2)

At March 31, 2020, vessels held for use, having a carrying value of $258,425 and $1,343 of unamortized deferred costs, were written down to their fair value of $166,430, resulting in an impairment charge of $93,338 (Note 5).

(3)

On March 8, 2020, the vessel Calipso, having a carrying value of $7,130, was recorded at fair value of $7,330, resulting in gain of $201 (Note 5).

(4)

In September 2020, the vessel Coronis and in December 2020, the vessels Sideris G.S. and Oceanis having an aggregate carrying value of $31,933 and $128 of unamortized deferred costs, were recorded at an aggregate fair value of $23,361, resulting in impairment charge of $8,700 (Note 5).