Frontline Ltd.: Investors Need To Prepare Now For Bankruptcy
- Frontline is now facing the likelihood of insolvency thanks to a $190 million bond coming due in April.
- With three quarters to go until the note is due, rates would have to average around $40K for VLCC and $34K for Suezmax.
- While the industry is heading into a cyclical high season, it's unlikely rates will average what is needed.
- Investors should avoid Frontline due to the risk of bankruptcy.