The Board of Directors of FSL Trust Management Pte, as trustee-manager Singapore-based First Ship Lease Trust, said it has successfully settled a legal dispute with Danish shipping company TORM.
The dispute is related to two tankers hired by TORM in 2011 on long-term bareboat charters. It started following the return of the ships — that were allegedly in untradeable condition — to their owner.
The ships in question are Torm Margethe (FSL Piraeus) and Torm Marie (FSL Perth), owned by FSL Trust’s subsidiaries FSL-25 and FSL-26, respectively.
In January last year, FSL subsidiaries launched a litigation procedure against TORM before the high court in England, seeking damage compensation.
“The Board is pleased to announce that both claims have been amicably resolved, final settlement has been concluded and paid on the terms and conditions set out in the settlement agreement,” FSL Trust informed.
“The settlement payment has been used to offset against all necessary repairs cost and litigation fees incurred in relation to these vessels and is not expected to have a material effect on the Trust’s current financial year.”