John Fredriksen’s Frontline has spent $17.8m on buying back its own bonds

John Fredriksen’s Frontline has spent $17.8m on buying back its own bonds and the deals were carried out in the open market on Monday at 91.65% of face value. This gives the shipowner $52.8m or 23.5% of the issue. The 4.5% convertible bonds worth $190m are due in April and Frontline admitted in August it faced a “challenging situation” as it sought a way to meet the final payment
The owner has $1bn in debt and said that, based on the current tanker market outlook, it was “doubtful” whether it could generate sufficient cash from operations to meet its obligation. Frontline said it was considering raising equity or selling assets, establishing new loans or refinancing existing arrangements.
A full restructuring of the company, including lease obligations and debt agreements, might be the only alternative, however.