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FSL Trust secures loan covenant relaxation for 2014

FSL Trust secures loan covenant relaxation for 2014
After five months of negotiations with its banks First Ship Lease Trust (FSL Trust) has secured relaxation of its loan covenants until the end of 2014.

Financially strapped FSL Trust has been in talks with its lenders since September 2013 for a relaxation of its loan covenants and finally announced a deal late 28 February.

“We are very pleased to have reached an agreement with our lenders regarding a relaxation of our loan covenants until 31 December 2014. This marks significant progress for the trust,” said Alan Hatton, ceo of FSL Trust Management.

“Despite the extremely challenging year the trust has faced due to lessee defaults, with the agreement of a loan covenant relaxation and improving performance due to ongoing restructuring efforts, the trust is now in a stronger position to move forward.”

Singapore-listed FSL Trust has suffered multiple long term charter defaults including from Geden Lines and OMNI Ships last year. This has left the sale and leaseback vehicle having to operate the vessels itself.

In early July 2013 its top management quit enmasse.