FSL Trust directors have been in negotiations with lenders to extend a $480m loan by a year. FSL still has $165.5m to pay back from the loan that it signed for in 2011.
FSL has applied to the High Court of Singapore to propose a scheme of arrangement to extend the loan. The trust said in a release that it remains in a “substantial” net equity position and its business and operations will continue as normal.
Singapore’s shipping trusts were all the rage in the Southeast Asian republic a decade ago but have since run into huge difficulties with FSL the last one operating. FSL, which has boxships and tankers in its fleet, has managed to register positive cash generation in the first nine months of the year to date.