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One other related item- the tie-in's between Fredriksen entities. They exist and since they
don't show on a Balance Sheet, it is sometimes easy to overlook (or miss entirely if one doesn't
follow a Fredriksen company closely). With FRO, the 2011 restructuring created two of them.
FRO prepaid SFL $50M in profit-share. That cash went towards paying down SFL's debt on the
tankers and OBO vessels. It is a nice offset that only gets breached when the vessels leased
from SFL cross over the cash-sweep hurdle. That's at a 25% rate too.

There seems to be a second one. This one is between FRO and Frontline 2012 (FRNT). I'm still
trying to figure its implications, but I interpret it as a positive for FRO. Their Q3 financial
statements included this item in the footnotes--

As part of the Restructuring described in Note 3, Frontline 2012 agreed to fully reimburse
and indemnify the Company for all payments made under any guarantees issued by the Company
to the shipyard in connection with the newbuilding contracts acquired and to reimburse the
Company for all costs incurred in connection with these guarantees.

One way to interpret that paragraph is FRNT reimbursing FRO all the capital spent on the
5 VLCCs, which would be around $200M. Since FRNT is currently private equity, that
reimbursement might not have to be cash. It could just as well end up being a future equity
allocation of FRNT. Either way, it seems to be an intangible for FRO.
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