FSL Trust resolves claim against charterer

FIRST Ship Lease (FSL) Trust has "amicably resolved" its claims against Torm Singapore for Torm's breaches of redelivery obligations as a bareboat charterer, FSL said in a bourse filing on Tuesday.

FSL had filed a claim against Torm in UK courts in January 2019 for US$1.89 million, after Torm redelivered two vessels to FSL's subsidiaries "in an untradeable condition". The FSL subsidiaries made the necessary repairs and filed the claim for costs and losses incurred, plus interest and legal costs.

FSL said that final settlement has been concluded and paid on the terms and conditions set out in the settlement agreement. "The settlement payment has been used to offset against all necessary repairs cost and litigation fees incurred in relation to these vessels and is not expected to have a material effect on the Trust's current financial year," it said.

Units of FSL closed unchanged at S$0.075 on Tuesday.