ITCL - Bondholders meeting
Press release from Independent Tankers Corporation Limited 15.12.2010
Independent Tankers Corporation Limited ("ITCL") is pleased to inform that 92.90 percent of the Golden State Petroleum Transport Corporation ("Golden State") holders approved all the suggested amendments in the consent solicitation as briefly outlined below on December 14, 2010. The minimum requirement was 50 percent. The near time focus for ITCL will be the sale of the VLCC Antares Voyager.
On December 8, 2010 Golden State, acting on behalf of Golden State Petro (IOM I-A) PLC, the owner of the double hull VLCC Antares Voyager (1998), re-launched a consent solicitation in order to amend the indenture relating to its 8.04% First Preferred Mortgage Notes due 2019.
The purpose of the consent solicitation was, among other things, (a) to seek approval for the proposed sale of the Antares Voyager, one of the VLCCs that serves as part of the collateral for the Notes, (b) to provide for the Antares Voyager's release as collateral under the related collateral agreements and (c) to amend and clarify certain other provisions in the Indenture and management agreements. The consent solicitation also sought approval for the sale in 2013, if necessary, of the Phoenix Voyager (1999), the other VLCC that serves as part of the collateral for the Notes.
In addition, the consent solicitation sought approval for the proposed amendment of the management agreement for each VLCC to provide the trustee under the Indenture and Frontline Ltd., the Manager of the VLCCs , additional flexibility in the furnishing and acceptance of an Adequate Bid (as defined in the consent solicitation statement) for the sale of the VLCCs, and to permit the Manager to charter a VLCC in the spot charter market or on time charters, if required, after the termination of the VLCC's current charter and prior to the sale of such VLCC.
Golden State was soliciting consents because, due to current conditions in the charter market for VLCCs, the Manager's efforts to enter into a replacement charter for the Antares Voyager on the terms required by the Indenture (an "Acceptable Replacement Charter") have failed. Furthermore, the Manager has determined that no Acceptable Replacement Charter is expected to be available after the expiration of the Antares Voyager's current charter on December 7, 2010. Although the current charter for the Phoenix Voyager will not terminate until at least March 2013, Golden State sought to amend the Indenture and management agreements in respect of the Phoenix Voyager to avoid incurring the additional expense of seeking further bondholder consent should the Manager determine in the future that an Acceptable Replacement Charter is not available for the Phoenix Voyager when its current charter terminates.
Holders of record of the Notes at the close of business on December 7, 2010 that validly provided their consent to the proposed amendments by 5 p.m. EST on December 14, 2010 will receive, on February 2, 2011 or as soon as practicable thereafter, a consent fee of US$5.00 per US$1,000.00 principal amount of the Notes.
Independent Tankers Corporation Limited
December 15, 2010
Questions should be directed to:
Bengt Neteland: Vice President Finance, Frontline Management AS
+47 23 11 40 37
