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

Tanker Trends

Shipowner Exmar Shelves IPO ... for Now

EXMAR (Euronext: EXM) said that due to unfavorable current capital market conditions, it is delaying the launch of the contemplated initial public offering (IPO)

NAT CEO: Low Oil Prices Benefit the Tanker Market

Nordic American Tankers Limited Chairman & CEO Herbjørn Hansson addressed the impacts of low oil prices on the tanker business in a letter to shareholders, citing

CEO Lone: China, India to Dominate Oil Trade

China and India will account for about 35% of global oil trade in the next 10 to 15 years, according to predictions by  Harald Lone, Chairman and CEO of Newport Shipping Group.

Finance

OW Bunker Bankruptcy has ‘Limited Impact’ on Monjasa

Though OW Bunker’s collapse has varyingly affected many companies around the globe, Danish bunker fuel provider Monjasa A/S said in a statement that the news holds

Sustainability Report: Carnival Ahead of Emissions Goal

Carnival Corporation & plc released a report today detailing its sustainability efforts, including initiatives which enabled the company to meet its corporate goal

EU Funds Study into New Aberdeen Harbor

The EU's TEN-T Program will invest over $940,000 for development studies for a new harbor at Nigg Bay in Aberdeen, Scotland. The harbor is to support the existing

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Ship Electronics Ship Repair 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: 0.0941 sec (11 req/sec)