FSL Trust suing Torm over tankers redelivered in ‘untradeable’ condition

Singapore-listed First Ship Lease Trust (FSL Trust) is suing Torm for redelivering two bareboat chartered vessels in “untradeable” condition.

The Torm Margrethe and the Torm Marie, respectively owned by FSL-25 Pte Ltd and FSL-26 Pte Ltd, were redelivered mid last year after being on seven-year long bareboat charters to FSL Trust.

The trust said the vessels were in “an untradeable condition and in breach of the redelivery provisions of the bareboat charters” with class inspecetions showing nine deficiences for condition of class for the Torm Margrethe and three for the Torm Marie.

“Consequently, in order to protect the interests of the unitholders, FSL-25 and FSL-26 performed all necessary repairs and claimed against Torm for the costs and losses incurred,” FSL said.

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In the case of the Torm Magrethe FSL-25 has filed a claim before the High Court in England $1.89m plus interest and legal costs and obtained security of $2.53m.

In the case of Torm Marie the trust said voluntary security was not provided so FSL- 26 arrested a the Torm Amazon in Kaohsiung, Taiwan 4 January 2019 and the vessel was released after a S$0.61m guarantee was provided and it will now file claims in the English High Court.

Posted 14 January 2019

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Marcus Hand

Author Bio ▼

Editor, Seatrade Maritime News Marcus Hand is the editor of Seatrade Maritime News and a dedicated maritime journalist with nearly two decades of experience covering the shipping industry in Asia. In addition to running Seatrade's maritime and offshore news website based from Singapore he is the Asia Editor of Seatrade Maritime Review. Marcus is also an experienced industry commentator and has chaired many conferences and round tables. Prior to joining Seatrade at the beginning of 2010 Marcus worked for shipping industry journal Lloyd's List for a decade and previous to that the Singapore Business Times covering shipping and aviation.

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