Maritime Administration, Office of Ship Financing, Room 8122, 400 Seventh Street, S.W., Washington, D.C. 20590, Attention Mr. Eugene Joy

CDS TANKERS FOR SALE The Maritime Administration (MARAD), an agency of the U.S. Department of Transportation, has obtained title through foreclosure to the vessels below. These vessels are being offered for public sale on an ``as is, where is'' basis. MARAD will warrant title to the vessels and convey title free and clear of all liens. Specifications are as follows (no guarantee or warranty as to specifications is made by MARAD): Falcon Leader and Falcon Champion: Length: 668.7'. Breadth: 84'. Depth: 50.7'. Draft Maximum: 36'. Builder: Bath Iron Works. Delivery Dates: LEADER-8/83. CHAMPION-1/84. Gross Tonnage: 17,735. Cargo Deadweight: 33,542. Capacity: 224,096bbl. Engines: Twin Diesel Delaval. Horsepower: 14,720 bHP. Propeller (controllable pitch): 1 (4 Blade). OPA Phase Out: LEADER 1/08. CHAMPION 1/09. Both vessels are laid up in a state of long term preservation and are located in the Beaumont Reserve Fleet, Beaumont, Texas. Bids may be for either vessel or both. The high bidder(s) will be required to submit a ten percent deposit by wire transfer, or in the form of a certified check drawn on a U.S. Bank and made payable to MARAD, within three business days of being advised that its bid will be recommended to the Maritime Administrator for approval. The deposit will be refunded if the recommendation is not approved. No interest will be paid on the deposit. The high bid will be considered non-responsive if the bid deposit is not received in the required three business day time frame. The successful bidder's deposit will be credited toward the purchase price. Bidders will also be required to submit with their bid (1) an affidavit stating that the bidder is not affiliated with the former owner, Falcon I Sea Transport, Falcon II Sea Transport and the charterers, as fully set out in the MARAD Standard Sale Contract, and (2) an affidavit stating the bidder is a U.S. citizen as defined in Section 2 of the Shipping Act, 1916, as amended (Act). The successful bidder(s) will be required to sign a Standard Sale Contract. A copy of this contract and the form of affidavit of citizenship is available to bidders on request. The high bidder(s) may inspect and drydock the vessels at its own risk and expense upon acceptance by MARAD of its offer and placement of insurance coverage acceptable to MARAD. The high bidder(s) may not assign its right to buy the vessels without the consent of MARAD. MARAD reserves the right to reject any and all bids and to seek additional bids from the bidders. The vessels were constructed with the aid of Construction Differential Subsidy (CDS) granted by MARAD. Certain restrictions are imposed by law upon purchasers of CDS built vessels. Most notably, purchasers are restricted from using a CDS vessel in the U.S. domestic trade by Section 506 of the Merchant Marine Act, 1936, as amended; purchasers must also qualify as U.S. citizens pursuant to Section 2 of the Shipping Act 1916; and the vessels must remain owned by U.S. citizens and be documented under the U.S. flag for their economic lives. Purchasers must abide by these restrictions and be willing to sign a CDS agreement encompassing their obligations with MARAD. The above conditions will be incorporated into the Standard Sale Contract for these vessels, and shall become a condition of the bill of sale applicable to the purchaser and any future purchaser of either vessel. Arrangements to inspect the vessels must be made through MARAD. For additional information, or to arrange an inspection, please contact Mr. Eugene Joy (202) 366-1917. Bids and affidavits are to be submitted to the Maritime Administration, Office of Ship Financing, Room 8122, 400 Seventh Street, S.W., Washington, D.C. 20590, Attention Mr. Eugene Joy by the close of business (5 pm EDT) September 15, 1995. (241)

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