tag:blogger.com,1999:blog-3008642600708028986.post1757176994364426098..comments2023-09-07T20:42:08.035+08:00Comments on Market Uncle's Blog: First Ship Lease Trust - Back to Earthmarket unclehttp://www.blogger.com/profile/16460144334144587714noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3008642600708028986.post-40916468975212872292009-07-29T20:14:55.316+08:002009-07-29T20:14:55.316+08:00If you look at BDI for the past year:
http://shipp...If you look at BDI for the past year:<br />http://shipping.capitallink.com/baltic_exchange/stock_chart.html?ticker=BDI&date_r=1yr&c=1&s=BDI<br /><br />you'll notice that it had crashed quite pathetically during oct 08. Thus the last valuation occurs when valuation probably took a hit. But I do agree the coming one will be at an even more depressed level.<br /><br />The management probably anticipated this, thus they began balance sheet restructuring measures like DRS and voluntary loan repayment. Hopefully, they'll be able re-negotiate the loan terms to waive or remove the covenants altogether.Market Unclehttps://www.blogger.com/profile/13926458268187430049noreply@blogger.comtag:blogger.com,1999:blog-3008642600708028986.post-75683479943181317052009-07-29T19:25:53.551+08:002009-07-29T19:25:53.551+08:00Value to loan covenants make use of market valuati...Value to loan covenants make use of market valuation of the vessels in the calculations. The book values of FSLT's vessels are not likely to be indicative of the market values as their vessels were bought before values started to fall. With most vessel prices down at least 15-20% since FSLT's last valuation in Oct 08 (~896m?), it would not be surprising if they technically breach their covenant in Nov when they do a new fleet valuation.Anonymousnoreply@blogger.com