Frontline Seeks Talks With Lenders After Tanker-Rates Rout
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Frontline Ltd., the largest operator of the biggest oil tankers, said it may run out of cash in 2012 and is seeking talks with lenders after eight months of unprofitable rates. The shares fell the most in at least 13 years.
The Hamilton, Bermuda-based company, which has $1 billion of bonds and public loans maturing in the next decade, may need more funding in 2012 and there are “significant uncertainties” about meeting some loan terms at the end of this quarter, Frontline said in a statement today. Billionaire Chairman John Fredriksen “has the funds available and he is prepared to go in and try to find solutions,” Tor Olav Troim, one of his aides, said in an interview in Oslo today.