Scorpio Bulkers Inc. has reached agreements with shipyards in South Korea and Romania to modify six newbuilding contracts for Capesize bulk carriers into newbuilding contracts for LR2 product tankers, as well as to sell four of these LR2 newbuilding contracts to Scorpio Tankers Inc., with options for Scorpio Tankers to purchase the remaining two.

The sale price for each of the four LR2 newbuilding contracts is US$51.0 million. The two option contracts, which expire on May 31, 2015, may be exercised by Scorpio Tankers Inc. for a fixed purchase price of US$52.5 million for each contract.

The company expects to record an aggregate loss on disposal of approximately US$41 million on the four modified newbuilding contracts. The company also expects to record an aggregate loss of approximately US$14 million on the potential disposal of the two option modified newbuilding contracts.

A sale of all six modified newbuilding contracts will result in an estimated reduction of future cash obligations of approximately US$120 million.

Emanuele Lauro, the company’s Chairman and CEO, said, “We have taken these actions to strengthen our liquidity position. We will continue to be proactive in further strengthening our balance sheet.”