FSL Trust Demands Redelivery of Crude Oil Tankers

Marinelink.com
Friday, June 14, 2013

FSL Trust Management Pte. Ltd. (FSLTM), as trustee-manager of First Ship Lease Trust (FSL Trust), wishes to announce that the lessees of its two crude oil tankers, namely, Aqua and Action, have defaulted on their lease payments and FSLTM has demanded the redelivery of these vessels. The lessees are wholly-owned subsidiaries of Geden Holdings Ltd.


FSLTM had been in restructuring discussions with Geden since the end of 2012. However, as of the date of this announcement, the lessees have failed to pay the agreed lease payments due for Aqua and Action. The obligations of the lessees are guaranteed by Geden pursuant to the deeds of guarantee.


FSLTM has technical and commercial management contingency plans in place for the vessels and intends to deploy the vessels in the spot market for the short term whilst exploring longer term employment options. In the current market environment, lease rates are expected to be lower than those contracted in the lease agreements with the lessees.


Barring unforeseen circumstances, FSL Trust’s vessel portfolio is able to generate sufficient cash flows to satisfy the Trust’s principal and interest payments. The default will not have a material impact on the net tangible assets per unit of FSL Trust.


Further announcements will be made as and when there are material developments in this matter, the company said.

Maritime Reporter February 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

ClassNK's Structural Rules for Bulkers & Tankers

The Nippon Kaiji Kyokai (ClassNK) has announced the establishment of its “Common Structural Rules for Bulk Carriers and Oil Tanker” (Rules for the Survey and

Brightoil Reports Steady Growth in Interim Results

Brightoil Petroleum (Holdings) Limited announced its interim results for the six months ended December 31, 2014, reporting steady growth over the period.   During the period,

Lithuania Looks to U.S. for Gas

Lithuanian liquefied natural gas (LNG) importer Litgas has signed a preliminary agreement with a U.S. supplier, looking to lessen the Baltic nation's dependence on Russia.

Finance

Golden Ocean, Knightsbridge Set for Merger

Dry bulk shipping companies Golden Ocean Group Limited (GOGL) and the listed dry bulk shipping company in John Fredriksen's business empire Knightsbridge Shipping

Delay in Relocating Guangzhou Shipyard

Guangzhou Shipyard International (GSI) has not commenced the relocation of its factory. According to the plan of Guangzhou city, the shipyard should have finished

Mitsubishi Bags Fourth LPG Carrier Order from Astomos

Tokyo-based Astomos Energy Corp has placed an order today with Mitsubishi Heavy Industries (MHI) for a very large liquefied petroleum gas (LPG) carrier.     The 83,

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Pipelines Pod Propulsion Port Authority Salvage Ship Simulators Shipbuilding / Vessel Construction Sonar
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: 0.0985 sec (10 req/sec)