Termination of long term charter-in contracts of three VLCCs
Hamilton, Bermuda - July 13, 2018
Frontline Ltd. (“Frontline” or the “Company”) today announced that Frontline Shipping Limited (“FSL”) has agreed with Ship Finance International Limited (“Ship Finance”) to terminate the long term charters for three very large crude carriers (“VLCCs”); Front Page, Front Serenade and Front Stratus upon the sale and delivery of the vessels by Ship Finance to an unrelated third party.
Frontline has agreed to a total compensation payment to Ship Finance of $10.125 million for the termination of these charters, which will be paid by Frontline in the form of three promissory notes, and Frontline and FSL will be released from all of their other respective obligations in relation to these vessels. These transactions are expected to complete during the third quarter of 2018.
Frontline Ltd. press release