FSL Trust Management Pte. Ltd. (FSLT), as trustee-manager of First Ship Lease Trust (FSL Trust), report that the lessees (the “Lessees”) of three chemical tankers, namely, Pertiwi, Prita Dewi and Pujawati (the “Vessels”), have defaulted on their lease payments under their respective lease agreements (the “Lease Agreements”) in February 2012. The Lessees are wholly-owned subsidiaries of PT Berlian Laju Tanker Tbk (BLT).

FSL Trust currently leases the Vessels, through special purpose companies (the “Vessel Owners”), under a 12-year bareboat charter each to the Lessees until 2018. Each Lessee is obliged to pay the relevant charter hire due under the relevant Lease Agreement on the first day of each calendar month. As of the date of this announcement, the Lessees have not made payment for the Vessels for the month of February 2012.

The obligations of the Lessees under the Lease Agreements are guaranteed by BLT pursuant to deeds of guarantee entered into between the respective Vessel Owners and BLT, the guarantor.

In view of the foregoing, the Vessel Owners have, by written notice to the Lessees in accordance with the terms of the relevant Lease Agreements, on 7 February 2012, declared the Lease Agreements to be in default, and have demanded payment by no later than 8 March 2012 for: (i) the charter hire which fell due in February 2012; (ii) the stipulated loss value, being the outstanding value of the unexpired term of the relevant lease (including the residual value of the relevant Vessel at the expiry of the relevant lease); and (iii) default interest on the sums set out in paragraphs (i) and (ii) above.

Tags: FSL Trust Management Pte. Ltd.