FSL Trust issues demand for redelivery of 2 dry bulk carriers

After OMNI Ships defaulted on payments.

FSL Trust Management Pte. Ltd. (FSLTM), as trustee-manager of First Ship Lease Trust (FSL Trust) announces that the lessee of its two dry bulk carriers, OMNI Ships Pte. Ltd. (OMNI Ships), has defaulted on its lease payments. Today, FSLTM issued a notice to OMNI Ships for the redelivery of its two dry bulk carriers, namely Stella Fomalhaut and Stella Eltanin.

During the first quarter of 2013, FSLTM concluded restructuring discussions with OMNI Ships, which included a reduction in bareboat charter rates for the two dry bulk carriers. Despite the restructured terms, OMNI Ships failed to pay FSL Trust the charter hires due.

Stella Fomalhaut and Stella Eltanin are currently employed under short-term sub-time charter contracts and FSLTM has agreed with the sub-time charterers to continue the contracts directly with FSL Trust. FSLTM is actively looking for suitable employment for the vessels after their current contracts expire.

The default will not have a material impact on the net tangible assets per unit of FSL Trust.