Independent journal on economy and transport policy
13:23 GMT+1
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The Board di Frontline has approved of a plan of division of the shipowning company
In the new society they will meet almost the totality of the debits, a part of the investments in new constructions and 15 ships, of which five in order
December 7, 2011
The board of directors of Frontline has approved of a plan of division of the shipowning company with the constitution of a new society in which they will meet almost the totality of the debits of Frontline regarding the banks, that is 666 million dollars on a total 679 million dollars (remaining 13 million will remain at the expense of Frontline), a quota 325,5 million dollars of the programmed investments for the ships of new construction and a part of the fleet of the company.
Frontline has specified that the business reorganization happens with the contribution of the shareholder of reference Holding Hemen Ltd, holding Cypriot that ago indirectly head to the president of Frontline, John Fredriksen, that it will bring guarantees financial institutions for 505,5 million dollars.
In the new society, than Frontline 2012 will be called, will meet the ships of more recent construction of the fleet of Frontline let alone new constructions ordered from the company. Draft of six Very Large Raw Carrier, plus others five VLCC of new construction, and four Suezmax for an estimated total value of about 1,12 billion dollars.
The plan previews that Frontline stops 10% of the capital stock of Frontline 2012, than altogether will pile to a previewed value of 250 million dollars, while remaining 90% will be undersigned from Holding Hemen. Thanks to the transfer of part of the investments to the new society, Frontline will reduce in consisting measure own investments in new constructions that will come down from 437,9 million to 112,4 million dollars.
Moreover Frontline has agreed a reduction of the amount of the charterings in the long term with Ship Finance International, that they will be diminished of 6.500 dollars/day for each ship in period 2012-2015, while Frontline will pour to Ship Finance International an indemnification of 106 million dollars. The agreement is subject to final approval by the bank and board of directors that finances Ship Finance International.
Currently Frontline has rental from Ship Finance International 28 ships. Once put into effect the restructure plan, the consistency of the fleet of Frontline will come down from 50 to 40 ships.
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The board of directors of Frontline has approved of a plan of division of the shipowning company with the constitution of a new society in which they will meet almost the totality of the debits of Frontline regarding the banks, that is 666 million dollars on a total 679 million dollars (remaining 13 million will remain at the expense of Frontline), a quota 325,5 million dollars of the programmed investments for the ships of new construction and a part of the fleet of the company.
- Via Raffaele Paolucci 17r/19r - 16129 Genoa - ITALY
