Navios, FSL Trust deal terminated

Oct 06 2017

Navios Maritime Holdings and FSL Trust Management, the trustee-manager of Singapore-based First Ship Lease Trust, have failed to cement their earlier sale and purchase agreement.

In April, Navios signed a term sheet to buy 154.4 mill shares in FSL Trust, representing around 24.2% of the total number of issued units in the trust, for a total of $20 mill. As part of the agreement, FSL Trust was expected to secure a $20 mill second priority mortgage convertible loan from Navios.

Definitive agreements for the proposed transaction were not agreed by the cut-off date of 30th September, 2017 and, as a result, the term sheet was automatically terminated, FSL Trust Management said.

The termination of the Term Sheet was not expected to have any material financial impact on the Group, it said in a statement.

As previously stated, the trustee-manager will continue to be proactive in achieving refinancing to ensure the long-term stability of the Trust amid the volatility and reduction in vessel values, the managers said.  

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