Scorpio Bulkers’ board of directors authorized the company to sell its remaining dry bulk vessels and exit the dry bulk sector during 2021. As a result of this decision, Scorpio Bulkers expects to record a write-down ranging from $475 million to $500 million on vessels sold and classified as held for sale.

This estimated write-down includes non-cash charges of $425 million to $440 million to reflect the current fair market value of the fleet and $50 million to $60 million of estimated cash charges, which include $34 million to $36 million for the termination of various vessel-related agreements and other selling costs. The company also will write off approximately $10 million of deferred financing costs as outstanding debt is repaid.

Pursuant to the master agreement previously filed with the SEC governing the commercial and technical management of its vessels, Scorpio Bulkers submitted a notice of termination to its managers, effectively ending its relationship with Scorpio Commercial Management and Scorpio Ship Management.

To reflect the company’s transition, the board of directors also resolved to seek shareholders’ approval to change the name of the company. The proposed new name of the company will be announced on or before Jan. 8.