FSL Trust updates Torm charters
First Ship Lease Trust (FSL Trust) has tweaked the terms of its charter contracts on two product tankers of debt-ridden Torm, Seatrade Asia online reports.
The shipping trust updated that bareboat charter rates for the two product tankers will be variable rates that Torm achieves in the market. In addition, the early buyout, purchase and lease extension options in the original agreements are cancelled.
“FSL Trust has the option to terminate the two charters before their maturity in 2018 if Torm underperforms the market benchmark rates by a pre-agreed margin, tested semi-annually,” FSL Trust said.
The trust, in exchange for agreeing to amend the charter contracts with Torm, will receive in aggregate a 17.3% equity stake in the enlarged share capital of Torm.