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Danish Ship Finance triggers sale of 13 Torm tankers

Danish Ship Finance triggers sale of 13 Torm tankers
Torm is expected to be hit with an impairment charge of $150m - $200m as one of its lenders Danish Ship Finance triggers the sale of 13 product tankers as part of the shipowner's restructuring.

Danish Ship Finance exercised an option to sell 10 MR and three LR2 product tankers and agreement has been reached in principle by Torm to sell the vessels Oaktree Capital Management. Torm will continue as commercial and technical management of the vessels.

“We acknowledge Danish Ship Finance’s commercial incentive to exercise their sales option before it expires in July and thereby trigger a sales process,” said Jacob Meldgaard ceo of Torm. “In this light, I am very pleased that Torm’s strong operational performance is recognised by a strategic investor in the product tanker space, which enables us to maintain all 13 vessels in Torm’s commercial control and technical management.”

The agreement is expected to lead to an impairment charge of $150m - $200m in the first quarter of 2014. Torm has revised down its forecast EBITDA for 2014 to $70m - $110m from $90m - $130m previously.