Frontline Sells Suezmax Tanker
Financially troubled Bermuda company Frontline Ltd. announced today [Dec.13] it has entered into an agreement to sell its 1992-built double hull Suezmax tanker “Front Beta”.
Delivery to the buyer is expected to take place in late December 2011 and the vessel will cease to operate in the tanker market.
The sale will result in a net cash outflow of approximately $0.2 million, after repayment of bank debt, and the company expects to record a loss of approximately $0.1 million.
Frontline Ltd. is a Bermuda-headquartered shipping company. The company is engaged primarily in the ownership and operation of oil tankers and oil/bulk/ore [OBO] carriers, which are configured to carry dry cargo.
It operates oil tankers of two sizes: very large crude carriers [VLCCs], which are between 200,000 and 320,000 deadweight tons [dwt] and Suezmaxes, which are vessels between 120,000 and 170,000 dwt.
It operates through subsidiaries and partnerships located in the Bahamas, Bermuda, the Cayman Islands, the Isle of Man, Liberia, Norway, the United Kingdom and Singapore. It is also involved in the charter, purchase and sale of vessels.
