Frontline Reaches Agreement With Golden Ocean Creditors

Frontline has reportedly secured backing from major creditors of U.S. tanker group Golden Ocean for a takeover plan. Frontline has reached an agreement with creditors holding $101.1 million of Golden Ocean's 10 percent senior notes due 2001, it said in a statement to the Oslo bourse. The entire issue of Golden Ocean Bonds totaled $291 million. Accordingly, with this agreement, Frontline has the support of more than $210 million of the Golden Ocean Bonds. It said that Golden Ocean bond holders had agreed to vote for its plan for reorganization in the Golden Ocean bankruptcy case. In return, Frontline agreed to pay Golden Ocean's unsecured creditors Frontline common shares with a value of up to 20 percent of each allowed claim or cash in the amount of 17 percent of each allowed claim. A full take-over of Golden Ocean will increase Frontline's controlled fleet to 29 VLCCs and 28 Suezmaxes.