First Ship Lease Trust

[kbl]

Good noon Boon san and everyone.

Liquidation of the trust - Banks in the front Q. If the banks FireSale the vessels How?

<Not a call to Buy or Sell>

Hi kbl san,
 
Long time no “hear”
 
No FireSale, of course.
 
The loan is not due until Dec 2017.
 
Orderly liquidation before the secured creditors could "act" on the collateral.
 
All else failed.
 
Raise money (be it loan or equity) from shareholders to pay off the loan first.
 
Liquidate the trust orderly.
 
Pay ALL back to shareholders.

The likely outcome is the loan would be extended or refinanced, IMO.

Huge MOS on collateral, who wouldn't lend?

I am just trying to make a point that, if all things failed, liquidation might not necessarily be a bad outcome to unit-holders.

Rights issue (without liquidation) is another possibility.
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Good evening Boon san and all
Thank you for valueable input. Cheers