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FSL Trust Announces Disposal of 2 Product Tankers

Logistic News - Published on Fri, 29 Nov 2019

Image Source: FSL Trust
FSL Trust Management Pte Ltd announced that wholly-owned subsidiaries of the Trust have executed Memorandum of Agreements to sell LR2 product tankers, FSL Piraeus and FSL Perth, to an unaffiliated third party and has received an initial 10% deposit in escrow. FSL Piraeus and FSL Perth are PRC-built 109,672 DWT product tankers built in 2006 which have been recently deployed under pool agreements. Upon completion of the aforementioned sale, FSL’s fleet will consist of 16 vessels, comprising two chemical tankers, two crude oil tankers, nine product tankers and three containerships. As of 31 December 2019, the FSL Piraeus and FSL Perth will be classified as held for sale in accordance with International Financial Reporting Standards and the Trust will book an impairment charge of approximately USD5.0 million on these vessels.

FSLTM CEO Mr Roger Woods said “The disposal of the two Product Tankers is part of our ongoing effort to refresh our fleet. Completion of the disposal is scheduled to take place before the end of January 2020, at which time, the net proceeds will be utilised for partial repayment of the Trust’s outstanding bank debt. An estimated USD 14.8 million will also be utilised towards the newbuilding acquisition announced on 13 December 2018 and 3 April 2019, and for general corporate purposes.”

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Posted By : Yogender Pancholi on Fri, 29 Nov 2019
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