Brightoil Cancels Proposed Tanker Sale Amid Debt Reorganization Efforts

by Ship & Bunker News Team
Thursday November 22, 2018

Brightoil Petroleum (Holdings) Limited Wednesday said it is continuing to work on its debt reorganization and efforts to boost liquidity, but the prosed sale of its tanker fleet will now not be part those plans.

The change of heart was "due to a change in shipping market environment" with TCE rates witnessing strong growth. It has instead chartered the VLCC and Aframax vessels to Shell International Eastern Trading Company.

"The Group believes that the strong market trend will continue in 2019 and wants to continue pursuing the shipping business and maintains stable cash income for the Group," it said.

While Brightoil did not discuss plans for its bunkering tankers, it transpired that also on Wednesday all six were arrested in Singapore.

There was also no mention of the Zhoushan element of the previously proposed deal.

Looking ahead, Brightoil said it was continuing to work with a lead bank to formulate a package of financing and debt restructuring plans, and would make further announcements when appropriate.