Please turn now to slide five, to briefly discuss some important company highlights. We recently announced that the vessel Star Sigma, which was time chartered to Pacific Bulk Shipping Ltd. of Hong Kong until October 2013 at a gross daily rate of 38,000 was readily available to Star Bulk Carriers.
Pacific Bulk has paid us a lump sum of $5.7 million in cash for the early delivery of this vessel. In addition to the lump sum payment, Pacific Bulk, supplied Star Sigma with 1,027 metric tons of fuel, valued approximately at $700,000. Following its delivery to us, the Star Sigma was employed in the spot market under a four year charter at a gross daily time charter equivalent rate of approximately 29,400, and is expected to complete its voyage, end March 2012.
Following the usual delivery, an agreement with Pacific Bulk Shipping, we have no legacy charters outstanding in our fleet employment list. While our long-term charters are with first class counter parties. Therefore, we feel no longer subject to material counter party risk regarding the fixed portion of our revenues.
Furthermore, the inevitable disconnect between the static book values dictated by U.S. GAAP rules and the volatile market conditions of our ships has led to the adjustment of the Star Sigma’s and Star Ypsilon’s book value, which resulted in a non-cash impairment loss of $62 million in the fourth quarter of 2011. The company’s cash flow impairment of its long-lived assets, whenever or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.Read the rest of this transcript for free on seekingalpha.com