After losing 13 product tankers to Oaktree Capital Management earlier this year, Danish shipowner Torm has entered into an agreement with its 40+ lenders and Oaktree regarding a possible restructuring plan.
The specific details were not released, however according to Torm, the restructuring is expected to stipulate that the lenders will initially write down the company’s debt to the current asset values in exchange for warrants and may elect to convert part of the remaining debt into new equity in the Torm.
As of 30 June, the book value of Torm’s fleet was USD $1.2 billion. Based on broker valuations the fleet had a market value of USD 931 million. Torm is one of the largest product tanker companies in the world with a fleet of 43 tankers and two dry bulk carriers. The company also operates 53 additional ships.
Torm says Oaktree would contribute product tanker vessels in exchange for a controlling equity stake in the combined company. The agreement also envisages a new working capital facility.
It is expected that the restructuring will result in a substantial dilution of the existing shareholders in TORM. The final restructuring plan and transaction structure will be presented no later than first quarter of 2015.
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 105,896 members that receive our newsletter.
Have a news tip? Let us know.
SINGAPORE, April 24 (Reuters) – Demand for liquefied natural gas (LNG) to power ships will rise this year on attractive prices, while more dual-fuel vessels join the global fleet, industry executives said....
ROME (Reuters) – An Italian judge on Friday cleared three migrant sea rescue charities that had been accused of abetting irregular immigration in complicity with human traffickers, throwing out a case opened...
(Bloomberg) — The closure of one of the East Coast’s busiest ports after the collapse of Baltimore’s Francis Scott Key Bridge has so far not led to broad price increases,...
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
Sign Up
Maritime and offshore news trusted by our 105,896 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
