Norwegian shipping company Frontline (FRO)
has signed an agreement to take over U.S.-based Golden Ocean Group (GDOCF)
. Frontline has reportedly signed a term sheet with Golden Ocean, under which the parties agreed to propose a joint plan for a financial restructuring of Golden Ocean.
Golden Ocean holds interests in 14 VLCCs, three VLCC newbuilding contracts and 10 bulk carriers. The company filed for a Chapter 11 restructuring in the Bankruptcy Court for the District of Delaware on Jan. 14.
Frontline has committed to pay up to $33 million in cash, or to issue up to 4.1 million shares and 1.9 million warrants in Frontline valued to $48 million to take over all unsecured debt and all upstream guarantees. It also signed a deal with Golden Ocean under which Frontline would buy the VLCC newbuilding, Kawasaki 1638 from Golden Ocean for $73.8 million.