FSL files scheme for extension of syndicated loan

Singapore

FSL Trust said after Monday's trading hours that it has applied to Singapore's High Court for a scheme of arrangement (SA) proposing one-year extension to a syndicated loan facility that has some US$165.6 million outstanding.

FSL said that this scheme does not extend to its trade creditors but only lenders of the US$479.56 million syndicated loan facility dated Dec 1 2011. The shipping trust is seeking to term out the maturity date of the facility by one year.

It also explained that it has to proceed with the scheme application because the extension requires the consensus of all lenders behind the syndicated facility even though majority of them have indicated their support for the extension sought.

"The trustee-manager has remained in compliance with its loan covenants since December 2014 and has been gradually reducing the amounts outstanding under the syndicated facility through a series of scheduled payments, prepayments from vessel disposals and voluntary prepayments," it added.

The manager of the shipping trust has also made an application to Singapore's High Court for moratoria with respect to the trust's assets.

The shipping trust chalked up a third-quarter net loss of US$21.7 million compared to a net profit of US$3.5 million in the previous year on US$22.2 million of impairment charges for three chemical tankers and three product tankers.