…As NYK Line Downgrades Profit Forecast***
FSL Trust Management, the trustee-manager of Singapore-based First Ship Lease Trust, has completed the refinancing of all outstanding amounts under an existing syndicated loan.
Namely, the company said that the refinancing was finalized using funds from new loan facilities as well as internal resources.
Additionally, in its filing to the Singapore Exchange, FSL Trust informed that it has applied for, and been granted leave, by the High Court to withdraw its application to convene a court meeting to approve a scheme of arrangement.
As such, there will be no court meeting held and no scheme of arrangement made between the company and its lenders. The moratoria obtained by the company and its vessel owning subsidiaries have also been discharged.
In early July, FSL Trust secured a total of USD 108 million via three separate loan facilities. Specifically, a USD 50 million facility agreement was signed with Hellenic Bank Public Company, USD 40 million loan was inked with Chailease International Financial Services and USD 18 million facility agreement with Amsterdam Trade Bank N.V.
In the meantime, Japanese shipping company NYK Line has lowered its forecast for the interim and full year consolidated financial results.
Based on the previous forecast for the interim results covering April-September 2018 period, NYK Line said its anticipated revenue was JPY 905 billion and a profit of JPY 8 billion (around USD 72 million). However, these figures have been cut to JPY 890 billion worth revenues and a profit of JPY 3 billion, down by 62.5 percent.
For the full year ending March 31, 2019, the revenue has been downgraded from JPY 1.805 trillion to JPY 1.260 trillion, while the full year profit forecast was cut from JPY 29 billion to JPY 12 billion, down by 58.6 percent.
NYK Line ascribed the revision to, among other things, higher than expected one-off costs related to the launch of the Ocean Network Express with K line and MOL. The JV signaled the termination of NYK Line’s liner business.
In addition, the group’s airline business Nippon Cargo Airlines (NCA) temporarily suspended all of its
aircraft operations from June 17, 2018, to confirm the airworthiness of the company’s aircraft.
World Maritime News
