Frontline Ltd. has entered into an agreement to sell its 1994-built Suezmax tanker Front Fighter. Delivery to the new owner is expected to take place in October 2011. The sale will result in a net cash outflow of approximately $3.0 million, after repayment of bank debt, and the Company expects to record a loss of approximately $27.0 million.
Furthermore, the Company has agreed with Ship Finance International Limited (“Ship Finance”) to terminate the long term charter party for the OBO carrier Front Striver and Ship Finance has simultaneously sold the vessel. The charter party is expected to terminate in late October 2011. Frontline will make a compensation payment to Ship Finance of approximately $8.1 million for the early termination of the charter. The transaction will reduce the Company’s obligations under capital leases with approximately $10.7 million and the Company expects to record a loss of approximately $9.3 million.
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Source: Frontline, October 20, 2011