in Korea and subsequently operate it, is to be sold. Sydon's parent company, Ermis Maritime Holdings Ltd., said yesterday that it expects to complete the sale by the weekend.

Although management at Ermis would not identify the likely buyer of Sydon, it did reveal that the deal was to be structured as a stock sale in which the buyer would assume the outstanding bank construction facility relating to the vessel, as well as the future liabilities and obligations of Sydon.

In November, Standard and Poor's credit rating agency cut its rating on Ermis, a Greek shipping company, to CC from B-minus because of the company's weak cash flow and financial flexibility. The rating reduction threatened Ermis's ability to meet its next semi-annual repayment on a $150 million, 12.5 percent preferred ship mortgage note, due on Monday.

The vessel Sydon is building is a Suezmax VLCC, a very large crude oil carrier.

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