Announcement 06/01/2016

01 June 2016
FESCO PLC (the “Company”) announces today that taking into account provisions of the issuance documentation it took a decision not to make on May 31, 2016 any coupon and amortization payments then due on the Company’s ruble bonds, series BO-02 (the “RUB bonds”), until the results of voting at the bondholders' meeting scheduled for June 6, 2016 are obtained.

Previously the Company proposed bondholders to postpone 20% amortization payments for 6 months from May 31, 2016 to November 29, 2016 and to consider a waiver of their rights to claim early redemption of the bonds (to the extent such right arises) for a period of 3 months.

The decision corresponds with the intentions of the Company to carry out the restructuring of its debt obligations and is made in view of the ongoing discussions with the holders of the RUB bonds and in the context of the previously announced strategic review of the capital structure of the Company and its subsidiaries.

Approval by the holders of RUB bonds of the proposals made by the Company will allow it to duly continue its ongoing strategic analysis of the capital structure and to develop mutually acceptable terms for the restructuring of the Company’s debt through a constructive dialogue with all the interested parties.

Important Notice:

These materials may contain forward-looking statements regarding future events or the future financial performance of Far-Eastern Shipping Company PLC (the “Company”). You can identify forward looking statements by terms such as “expect”, “believe”, “estimate”, “anticipate”, “intend”, “will”, “could”, “may”, or “might”, the negative of such terms or other similar expressions. These forward-looking statements include matters that are not historical facts and statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, the Company’s results of operations, financial condition, liquidity, prospects, growth, strategies, and the industry in which the Company operates. By their nature, forward-looking statements involve risks and uncertainties, because they relate to events and depend on circumstances that may or may not occur in the future. The Company cautions you that forward-looking statements are not guarantees of future performance or outcomes and that the Company’s actual results of operations, financial condition, liquidity, prospects, growth, strategies and the development of the industry in which the Company operates may differ materially from those described in or suggested by the forward-looking statements contained in these materials. In addition, even if the Company’s results of operations, financial condition, liquidity, prospects, growth, strategies and the development of the industry in which the Company operates are consistent with the forward-looking statements contained in these materials, those results or developments may not be indicative of results or developments in future periods. Any forward-looking statements that are made in the materials speak only as at the date of this announcement. The Company does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in forward-looking statements of the Company, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, market change in the Russian freight rail market, as well as many other risks specifically related to the Company and its operations, including those discussed in these materials.

These materials are not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act of 1933, as amended (the "Securities Act"). Any securities mentioned herein have not been and will not be registered under the Securities Act, and no public offering will be made in the United States.