Navios Maritime Holdings’ planned deal to acquire a majority stake in First Ship Lease Trust (FSL Trust) has fallen through.

Under a term sheet signed in April Navios had been going to buy HSH Nordbank’s 24.23% controlling stake in FSL Trust, and grant a secondary convertible mortgage loan to the Trust that would take its holdings to over 50.1% once converted.

Singapore-listed FSL Trust Management said in a statement to the Singapore Exchange: “The Trustee-Manager wishes to announce that definitive agreements for the proposed transaction were not agreed by 30 September 2017 and the term sheet has been automatically terminated in accordance with the terms thereof.”

The Trust said the termination of the term sheet was not expected to have any financial impact on the group.

“As previously stated, the Trustee-Manager will continue to be proactive in achieving refinancing to ensure the long-term stability of the Trust amid the volatility and reduction in vessel values,” it said.

The Trust’s existing financing facilities were set to expire at the end of September this year.