The Company sold two
1995-built Aframax tankers, the Falster Spirit for $17.3
million in April 2010 and the Sotra Spirit for $17.2 million
in August 2010, resulting in a total net loss on sale of $1.9
million. Both vessels were trading in the Teekay Aframax Pool prior
to the sales.
b)
The Company’s
consolidated statements of loss (income) for the year ended
December 31, 2011 includes a $58.0 million write-down on
certain of the Dropdown Predecessor’s conventional tankers.
The vessels were written down to their estimated fair values, which
is the estimated sales price of the vessels. The recognition of
these write-downs was the result of the continuing weak tanker
market, which has largely been caused by an oversupply of vessels
relative to demand.