First Ship Lease Trust has agreed to dispose of its chemical tanker FSL Tokyo in an effort to reduce outstanding debt facility.
The 2006 Japanese-built ship, was sold for a cash consideration of USD 13.8 million. The 20,938 dwt FSL Tokyo has been deployed in the spot market, according to FSL Trust Management, the trusteemanager of FSL Trust.
The company said that the net proceeds from the sale will be applied in full to the outstanding loan facility in the first quarter of 2018. FSL Trust will record a related impairment charge of around USD 9 million in the fourth quarter of 2017.
“The sale of the vessel was undertaken to further reduce the debt due under the Syndicated Loan facility,” Roger Woods, Chief Executive Officer of FSLTM, said.
The amount outstanding under the facility following the application of the sale proceeds of FSL Tokyo will be USD 138 million, down from the debt outstanding in June 2013 of USD 425 million when there were significant changes in the Trust’s Board and Management.