Windsor Petroleum Transport Corporation Announces Termination of Memorandum of Agreement

Aug 02, 2011, 11:31 ET from Windsor Petroleum Transport Corporation

NASSAU, Bahamas, Aug. 2, 2011 /PRNewswire/ -- Windsor Petroleum Transport Corporation ("Windsor") announced today that the Memorandum of Agreement ("MOA") that a Windsor entity entered into on May 30, 2011 for the sale of its vessel, the m/v Pioneer, was terminated by the buyer because a condition to which the sale was subject did not occur.  Pursuant to the MOA, the sale was contingent on, among other things, the buyer being awarded a specified contract by a third party.  The Buyer notified Windsor that it was not awarded that contract and has therefore elected to terminate the MOA.  

Pursuant to the existing Management Agreement for the vessel and the indenture governing the notes for which the vessel serves as collateral, the manager will continue to seek bids for the vessel and intends to arrange for the vessel to continue to operate on time charters or in the spot market.  There can be no assurance that any earnings generated by the vessel will be sufficient to cover operating expenses or debt service costs.

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, or a solicitation of an offer to purchase or sell, any securities.

This press release includes forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that are subject to risks, uncertainties and other factors, which could change as a result of various market conditions. As a result of these risks, uncertainties and other factors, actual results could differ materially from those referred to in the forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. All forward-looking statements are based on information currently available to Windsor and Windsor assumes no obligation to update any such forward-looking statements.

SOURCE Windsor Petroleum Transport Corporation