World News
FAL Oil Nears Debt Restructure Deal
United Arab Emirates (UAE) based FAL Oil is close to securing a debt restructuring agreement of approximately $700 million plus additional loans of $620 million in an effort to keep operations going, Reuters has reported, citing company sources.
A lack of cash flow resulting from sanctions imposed by the US in January for supplying gasoline to Iran has left the company, once viewed as one of the largest independent oil and bunker traders in the Gulf Region, struggling operationally.
The sanctions have reportedly resulted in a lack of funds and the inability to bid on new business.
One source was quoted as reporting that the Dubai-based trader has already had to cut operations by more than 60 percent.
Sources familiar with the company operations also told Reuters that FAL Oil has shut down trading operations in the last few months at its unit in Singapore and London.
Apparently "Banks (creditors) have in principle agreed on the restructuring but it is not yet complete because of the delays in the execution of certain documents," one company source indicated.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 502.00 | 4.50 | 617.00 | 5.50 |
| Rotterdam | 457.50 | 2.50 | 623.50 | 6.50 |
| Houston | 469.00 | 3.50 | 623.00 | 2.00 |
| Fujairah | 494.50 | 6.50 | 715.50 | 5.50 |
| Global 20 Ports Average | 526.00 | 3.00 | 712.50 | 11.50 |
| Global 4 Ports Average | 481.00 | 4.00 | 645.00 | 4.50 |
| Global Average Bunker Price | 569.00 | 2.00 | 750.00 | 5.50 |
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