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FSL Trust sells two dry bulk vessels to ease cash crunch

Published on Mar 18, 2014 9:41 PM

THE trustee-manager of First Ship Lease Trust (FSL Trust) has sold the trust's two dry bulk vessels, MT Stella Fomalhaut and MT FSL Durban.

The sale is expected to save FSL Trust some US$3 million (S$3.8 million) in dry dock capital expenditure in the financial period ending March 31 and reduce its cost of debt service in the first quarter and the financial period ending June 30 by at least US$5 million.

FSL Trust sold the dry bulk vessels for US$23.55 million in cash, which took into account current strong market asset prices and the advantage to FSL Trust of saving the significant cost of a third special survey and dry docking of each vessel.

The net proceeds from the disposal will be applied to the outstanding loan facility and to reduce subsequent principal repayments in the first and second quarter.

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