First Ship Lease Trust Gains Time

Press Release
Sunday, July 01, 2012

FSL Trust secures 12 months relaxation of two loan covenants, suspends distribution during that period

First Ship Lease Trust ("FSL Trust") is a Singapore business trust that provides lease financing solutions to the international maritime industry. FSL Trust currently owns a diversified portfolio of 25 vessels with an average age of 6.5 years. FSL Trust derives stable long-term cashflow primarily through leasing its vessels on long-term bareboat charter basis to international shipping companies. FSL

The relaxation of covenants would be in effect for 12 months until end-June 2013 (the “Relaxation Period”). In view of the economic weakness in Europe and further deterioration in the shipping market,

FSLTM requested for and was granted a temporary relaxation of two loan covenants from its lenders to address potential breaches over the next 12 months.

The two covenants that the lenders have agreed to relax are the security value-to-loan (“VTL”) ratio and the debt service coverage (“DSC”) ratio.

The relaxation of the covenants cushions the Trust from the economic uncertainties and depressed vessel valuations expected over the next 12 months.”

 

Maritime Reporter November 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Ithaca Gets New COO

Ithaca Energy Inc. is pleased to announce the appointment of Mr Roy Buchan as Chief Operations Officer, starting 5 January 2015. Mr Buchan has over 30 years

Nicaragua Canal Developer Plans IPO

The Hong Kong-based company with a concession to build a $50 billion shipping canal in Nicaragua said on Tuesday it is preparing to launch an initial public offering.

Mitsubishi Considers Splitting Off Shipbuilding Arm

Japan's Mitsubishi Heavy Industries Ltd (MHI) said on Wednesday it was considering a range of options for its shipbuilding business, including splitting it off into a separate company.

 
 
Maritime Contracts Maritime Security Maritime Standards Navigation Offshore Oil Pipelines Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1629 sec (6 req/sec)