Net cash used in financing activities for the nine months ended September 30, 2012 was $36.5 million. Net cash provided by financing activities for the nine months ended September 30, 2011 was $76.8 million. For the nine months ended September 30, 2012, net cash used in financing activities consisted of loan installment payments amounting to $32.0 million, cash dividend payments of $3.6 million, and $0.9 million paid for the repurchase of 925,957 shares under the terms of the existing share re-purchase plan. For the nine months ended September 30, 2011, net cash provided by financing activities consisted of loan proceeds amounting to $85.5 million in a relation to the acquisition of the second hand vessels Star Big and Star Mega as well as progress installment payments for our new building vessels Star Borealis and Star Polaris and proceeds from the public offering amounting to $28.7 million, offset by, cash dividend payments of $10.4 million, financing fees amounting to $0.9 million, and loan installment payments amounting to $26.1 million.
As a result of the decline in charter rates and vessel values during the last four years and because market expectations for future rates are low and vessel values are unlikely to increase to the high levels of 2008 in the foreseeable future, we performed an impairment test using the value in use method as of September 30, 2012. We determined undiscounted projected net operating cash flows for each vessel and compared it to the vessel's carrying value. In developing our estimates of future cash flows, we made assumptions about future charter rates, ship operating expenses and the estimated remaining useful lives of the vessels. These assumptions are based on current market conditions, historical trends as well as future expectations The projected net operating cash flows were determined by considering the charter revenues from existing time charters for the fixed vessel days and an estimated daily time charter equivalent for the unfixed days over the estimated remaining economic life of each vessel, net of brokerage commissions, expected outflows for scheduled vessels' maintenance (dry-docking and special surveys) and vessels' operating expenses. Estimates of revenue are based on the current FFA rates for as long as they are available and historical average rates of similar size vessels for the period thereafter. As result of this analysis, we determined that the carrying amount of the total fleet of our eight Supramax vessels and one of our oldest Capesize vessels, Star Sigma, were not recoverable as of September 30, 2012 and thus we recognized a loss amounting to $303.2 million. This impairment loss does not represent a cash expense and it does not affect the Company's cash flow.
As of September 30, 2012, we were not in compliance with several financial and security coverage ratio covenants in our loan agreements. As a result, the Company may be required to prepay indebtedness, provide additional collateral, or obtain waivers to the respective terms of the facilities. The Company is currently in advanced discussions with its lenders to address the issues. If we are not able to reach a mutually acceptable resolution with our lenders, our total indebtedness may be reclassified as current and our lenders may accelerate our indebtedness and foreclose their liens on our vessels, which would impair our ability to continue to conduct our business.
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