Singapore’s First Ship Lease Trust has announced that a deal which would have seen Greek owner Navios Maritime Holdings acquire a 50.1% controlling stake of the trust has been terminated.
The two companies signed a term sheet agreement in April, which would have seen Navios acquire over 154m FSL Sale Units for $20m, all issues and paid-up FSL Asset Management Sale Shares, as well as provide a $20m second priority mortgage convertible loan.
FSL Trust said that definitive agreements for the transaction were not agreed by September 30, leading to an automatic termination of the term sheet.
FSL, which has a fleet of 22 vessels, has suffered from a string of high-profile boardroom departures.
In March, its accountant Moore Stephens signalled that the trust and its subsidiaries have going concern issues with liabilities exceeding assets by $179m and $171m respectively.