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General Maritime Corporation Announces Agreement To Enter Seven VLCCs In Commercial Pool Managed By Heidmar Inc.

Stocks in this article: GMR

NEW YORK, July 5, 2011 /PRNewswire/ -- General Maritime Corporation (NYSE: GMR) announced today it has agreed to enter seven of its VLCCs into Seawolf Tankers, a commercial pool of VLCCs managed by Heidmar Inc., one of the world's leading commercial operators of tankers.

Under the terms of the agreement, the Genmar Vision, Genmar Zeus, and the Genmar Ulysses will begin trading in the pool within the next 30 days. In addition, the Genmar Hercules and Genmar Victory are expected to begin trading in the pool upon completion of their current time charters. The Genmar Poseidon and the Genmar Atlas will also enter the Seawolf Pool via period charters with Heidmar Inc.

Commercial pools are designed to provide for effective chartering and commercial management of similar vessels that are combined into a single fleet to improve customer service, increase vessel utilization and capture cost efficiencies.

John P. Tavlarios, President of General Maritime Corporation, commented, "We are pleased to be a founding member of the Seawolf Tankers pool. Seawolf Tankers complements our flexible fleet deployment strategy by enhancing our ability to maximize earnings while maintaining a level of stability in our results.  The pool also provides the opportunity to realize economies of scale and to benefit from Heidmar's extensive global network.  We remain committed to effectively managing General Maritime's assets through the tanker cycles and strengthening the Company's future prospects."

Timothy P. Brennan, President & CEO of Heidmar commented, "We are delighted to have General Maritime as a formative participant in Seawolf Tankers.  We have great respect for General Maritime and look forward to working with them on the expansion of the Seawolf pool with other first-class vessel owners."

The Company stated that the two vessels on period charter to Heidmar will be chartered for 12-months at market related rates, subject to a floor of $15,000 per day and a profit share of 50/50 above $30,000 per day.  The Company may withdraw any of its vessels from the pool after one year upon 90 days notice (with delivery to occur upon completion of any charter applicable at that time).

As previously disclosed, the Genmar Hercules is currently on a 12-month time charter to Trafigura at a rate of $35,500 per day, with earliest redelivery date of September 2011.  There is an optional 12-month period available at the charterer's option at a rate of $40,000 per day.  The optional period, if exercised, must be declared by Trafigura no later than 30-days from the redelivery date.

As also previously disclosed, the Genmar Victory is currently on a 24-month time charter to BP at a rate of $40,500 per day with earliest redelivery date of February 2012. There is an optional 12-month period available at the charterer's option at a rate of $40,000 per day with 50/50 profit sharing in that period.  The optional period, if exercised, must be declared by BP around August 2011.

About Heidmar Inc.

Founded in 1984, Heidmar commercially operates a fleet of over 120 tankers through its offices in the United States, England and Singapore. Heidmar is the general agent and commercial manager of five pools: Star Tankers  (Panamax/LR1 tankers); Sigma Tankers (Aframax/LR2 tankers); Dorado Tankers  (Handysize/Medium Range product tankers); Blue Fin Tankers (Suezmax tankers); and Seawolf Tankers (VLCC). Heidmar is also a 50% owner of WOMAR which is a tanker pool operating company, specializing in oil and chemical tanker tonnage up to 30,000 dwt.

About General Maritime Corporation

General Maritime Corporation is a leading crude and products tanker company serving principally within the Atlantic basin, which includes ports in the Caribbean, South and Central America, the United States, West Africa, the Mediterranean, Europe and the North Sea. General Maritime also currently operates tankers in other regions including the Black Sea and Far East. General Maritime owns a fully double-hull fleet of 31 tankers - seven VLCC, nine Aframax, twelve Suezmax tankers, two Panamax and one product tanker - with a total carrying capacity of approximately 5.2 million dwt. The Company also has three Product tankers that are chartered-in with options to purchase the vessels. The Company controls tonnage totaling 5.3 million dwt, including the owned fleet and the chartered-in fleet.  

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and observations. Included among the factors that, in the Company's view, could cause actual results to differ materially from the forward looking statements contained in this press release are the following: loss or reduction in business from the commercial pool or its customers; the failure of commercial pool or its customers to perform their obligations; changes in demand; a material decline in rates in the tanker market; changes in the itineraries of the Company's vessels; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K for the year ended December 31, 2010 and its subsequent reports on Form 10-Q and Form 8-K.

This press release is not an offer to purchase or sell, or a solicitation of an offer to purchase or sell any securities of the Company.

SOURCE General Maritime Corporation

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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