Termination of charter of two single hull Suezmax tankers

Frontline Ltd. has agreed with Ship Finance International Limited to terminate the long term charter parties between the companies for the double sides single bottom Suezmax tankers Front Birch and Front Maple. Ship Finance has simultaneously sold the vessels at a net amount of $40 million per vessel.
Delivery to buyers is expected to take place in December 2007 and January 2008. Upon delivery of the vessel to the buyers the long term charter parties between Frontline and Ship Finance will be terminated. Ship Finance will make a compensation payment to Frontline of approximately $32.8 million for the early termination of the current charter parties on the two vessels, which will be recognized at the time of delivery to the new owners.

Source: Transportweekly