California Petroleum Transport Corporation Launches Consent Solicitation

NEW YORK, Feb. 17 /PRNewswire/ -- California Petroleum Transport Corporation, a Delaware corporation, announced today the launch of a consent solicitation to amend the indenture (the "Indenture") relating to its 8.52% First Preferred Mortgage Notes due 2015 (the "Notes") and to amend or terminate certain related collateral and other agreements.  The purpose of the consent solicitation is to amend and clarify certain Indenture and related collateral agreement provisions and definitions to provide for the sale of the single-hull m.t. Front Voyager, a collateral vessel related to the Notes (the "Vessel"), and its release as collateral under the related collateral agreements (the "Sale and Release"). As part of the Sale and Release, the charter for the Vessel will be amended to permit its sale prior to the current charter expiration date of April 1, 2010 if certain bid conditions are met, as well as to permit the mandatory redemption of approximately $10,884,000 in aggregate principal amount of the Notes in connection with the Sale and Release as soon as practicable.

The proposed amendments to the Indenture and related collateral and other agreements are fully described in the consent solicitation statement. Holders of the notes are urged to read and carefully consider the information contained in the consent solicitation statement.

CPTC is soliciting consents because the Vessel is a single-hull, Suezmax crude oil tanker, which under environmental regulations of the International Maritime Organization is no longer permitted to engage in the seaborne transportation of crude oil after February 26, 2010.  Frontline Ltd., the manager of the Vessel, has determined that, given the single-hull structure of the Vessel, efforts to enter into a replacement charter for the Vessel, as of the date hereof, have failed and no acceptable replacement charter is expected to be available after the expiration of the current charter on April 1, 2010.

CPTC is offering a consent fee of US$1.00 per US$1,000 principal amount of its Notes to holders of record at the close of business on Feb. 12, 2010 that validly provide their consent to the proposed amendments by 5 p.m. EST on March 2, 2010. CPTC's obligation to accept consents and pay a consent fee to consenting holders is subject to conditions as set forth in the consent solicitation statement.

Jefferies & Company, Inc. is acting as the Solicitation Agent for the consent solicitation. D.F. King & Co., Inc. is acting as the Information and Tabulation Agent.

Questions concerning the terms of this solicitation should be directed to Jefferies & Company, Inc. at (877) 877-0696 (toll free) or (212) 284-2435 (collect). Requests for assistance in completing the letter of consent or requests for additional copies of the consent solicitation statement, the letter of consent or other related documents may be directed to D.F. King & Co., Inc. at (800) 769-4414 (toll free) or (212) 269-5550 (Banks and Brokers).

Advisory: This press release is for informational purposes only and is not being made in any jurisdiction in which the making of this announcement would violate the laws of such jurisdiction, nor is it an offer to purchase or sell, a solicitation of an offer to purchase or sell, or a solicitation of consents with respect to any securities. The solicitation is being made solely pursuant to a consent solicitation statement dated Feb. 17, 2010 and the related letter of consent.

SOURCE California Petroleum Transport Corporation