Ezion Holdings’ wholly owned subsidiary Teras Fortress 2 (TF2PL) has disposed of a liftboat to Virgo Shipping for a cash consideration of US$22 million ($29.2 million).

Virgo Shipping is mainly involved in the business of chartering of ships and vessels to support the marine and offshore oil and gas industry.

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The disposal was carried out by DBS Bank as attorney-in-fact of TF2PL given that the bank is the mortgagee under a mortgage of the vessel.

Ezion says the mortgage over the liftboat will be discharged following the disposal, adding that the cash consideration will be utilised to repay the secured bank loans.

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The company also says the disposal is estimated to generate a net gain of US$325,000.

Shares of Ezion were last traded at 4.3 cents on Dec 28.