Acquisition

The bankruptcy court in Wilmington, Delaware approved on August 4 Frontline’s disclosure statement for restructuring of Golden Ocean Group Ltd.

Frontline’s restructuring plan was also recommended to the court by the debtor, Golden Ocean Group Ltd., and by the official Creditors Committee. The proposal for restructuring will now be distributed to the bondholders for voting. Frontline has through its own bond position and through a lock-up agreement already secured support from 2/3 of the unsecured claims.

Final confirmation hearing for the plan is scheduled to be held in Wilmington on September 15. The court will also arrange a hearing on August 14 where a proposal to appoint Frontline as manager for the Golden Ocean operation with immediate effect will be decided upon.

Chairman of Frontline, John Fredriksen, says in a comment: “We are satisfied to have got an approval for the disclosure statement. The addition of another 13 VLCCs to the existing Frontline fleet confirms Frontline’s aggressive consolidation strategy. The limited investment in Golden Ocean creates a unique operational leverage for our shareholders. With the current strength and the positive outlook for the market the Board is confident that the transaction will increase earnings and value development per share. The new schedule set by the Court should make it possible for us to have Golden Ocean’s operation fully consolidated in Frontline before the end of September. The fact that Frontline is likely to get management control already next week gives us the opportunity immediately to reduce the cost structure of Golden Ocean and take out the synergy effect.”