You are here

FSL Trust sells another vessel for US$6.2 million to pare debt

FIRST Ship Lease Trust (FSL Trust) has sold another vessel to further ease its debt, this time for US$6.2 million.

The trust sold a chemical tanker for US$13.8 million earlier this week to help cut its debt.

The trustee-manager said on Thursday that the trust has sold a containership vessel, FSL Busan, of which the net proceeds will be used to repay an outstanding loan facility.

FSL Busan is a 2003, German-built, 1,221 twenty foot equivalent unit (TEU) containership that has been deployed in the Hanse Containership Pool.

Accordingly, FSL Trust will record a gain on disposal of about US$750,000 in the first quarter of the fiscal year 2018.

Your feedback is important to us

Tell us what you think. Email us at btuserfeedback@sph.com.sg

FSL Trust had applied to the Singapore High Court for a scheme of arrangement in December, proposing a one-year extension to a syndicated loan facility that has some US$165.6 million outstanding.

Roger Woods, chief executive of the trustee-manager, said that the disposal of another of the trust's older vessels will allow the trust to further reduce its debt under the syndicated loan facility to US$132 million.

He added that the board and management are continuing to pursue solutions for refinancing the trust.[END]

FSL Trust units closed 1.1 per cent or 0.1 Singapore cent down to 9.2 Singapore cents on Thursday, before the announcement was made.

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes