18-04-2017, 01:48 PM
(18-04-2017, 12:04 PM)tsc3024 Wrote:(17-04-2017, 03:51 PM)ZZF Wrote: If they can't get refinancing by end year and shareholders vote no for rights , high chance end up like rickmers ?
It may be better to liquidate the company and return value to investors. After all we invest to receive income, we have not been receiving it in the past 3 years, at the rate it is going, will not see any income in the foreseeable future. What then is the purpose of having this Trust? Management of the Trust mustn't forget about the sole purpose of the Trust, give value to unit holders. In the past years, the trust has been making profits, but it doesn't benefits the unit holders at all. And now, the Trust is looking at unit holders to pump in more money Does it make sense from unit holders' perspective?
At one point in time (2015) after the collapse of oil prices, FSL's vessels were worth so much such that if they were liquidated, the trust NAV should be worth more than 2.5x of today's share price. Today, the prices of Aframax tankers have fallen in half. Need to work out the liquidation NAV again if this is the course of action.