Replies to post #571 on Frontline Ltd (FRO)

[Wildbilly]

Frontline: Evaluating The Options To Avoid Bankruptcy
Sep. 16, 2014 1:29 PM ET | 1 comment | About: Frontline Ltd. (FRO)
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More...)
Summary

Frontline has stated the company will likely face difficulty repaying a $190M bond due in April 2015.
The company has listed options including raising equity, selling assets, establishing new loans, and refinancing debt.
The final option for the company is "a full restructuring of the company, including lease obligations and debt agreements"; in other words, Chapter 11.
During the 2Q14 earnings release, Frontline Ltd. (NYSE:FRO) that it was facing challenging times, especially with a debt payment of $190M coming in April 2015. The company currently lacks the cash to repay the debt, and is evaluating how to move forward. The options the company as are:

Raising equity
Selling assets
Establish new loans
Refinance existing arrangements
As a final move "a full restructuring of the company, including lease obligations and debt agreements might be the only alternative."

Back Ground

Frontline use to be one of the high flying, high dividend paying shipping companies through the 2000's. With the down turn of the global economy in 2008, and the crash of shipping rates, FRO fell from a high of the mid-$60's to a current price of $1.56. After the shipping rates crash, FRO went on a spending spree to buy new ships at cheaper rates, in anticipation of a rate recovery. That recovery has yet to fully materialize and stabilize, and FRO has debt coming due.

read more: http://seekingalpha.com/article/2499195-frontline-evaluating-the-options-to-avoid-bankruptcy?uprof=44